UVXY Collar Strategy
UVXY (ProShares - Ultra VIX Short-Term Futures ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on CBOE.
The ProShares Ultra VIX Short-Term Futures ETF aims to deliver daily investment outcomes, prior to the deduction of fees and expenses, that are one-and-a-half times (1.5x) the daily movement displayed by the S&P 500 VIX Short-Term Futures Index.
UVXY (ProShares - Ultra VIX Short-Term Futures ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $162.7M, a beta of -3.32 versus the broader market, a 52-week range of 24.68-96.3, average daily share volume of 7.9M, a public-listing history dating back to 2011. These structural characteristics shape how UVXY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -3.32 indicates UVXY has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a collar on UVXY?
A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot.
Current UVXY snapshot
As of June 29, 2026, spot at $25.70, ATM IV 86.42%, IV rank 13.97%, expected move 24.78%. The collar on UVXY below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 32-day expiry.
Why this collar structure on UVXY specifically: IV regime affects collar pricing on both sides; compressed UVXY IV at 86.42% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 24.78% (roughly $6.37 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UVXY expiries trade a higher absolute premium for lower per-day decay. Position sizing on UVXY should anchor to the underlying notional of $25.70 per share and to the trader's directional view on UVXY etf.
UVXY collar setup
The UVXY collar below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With UVXY near $25.70, the first option leg uses a $27.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UVXY chain at a 32-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 UVXY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $25.70 | long |
| Sell 1 | Call | $27.00 | $2.26 |
| Buy 1 | Put | $24.00 | $1.70 |
UVXY collar risk and reward
- Net Premium / Debit
- -$2,514.00
- Max Profit (per contract)
- $186.00
- Max Loss (per contract)
- -$114.00
- Breakeven(s)
- $25.14
- Risk / Reward Ratio
- 1.632
Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium.
UVXY collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on UVXY. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$114.00 |
| $5.69 | -77.9% | -$114.00 |
| $11.37 | -55.7% | -$114.00 |
| $17.05 | -33.6% | -$114.00 |
| $22.74 | -11.5% | -$114.00 |
| $28.42 | +10.6% | +$186.00 |
| $34.10 | +32.7% | +$186.00 |
| $39.78 | +54.8% | +$186.00 |
| $45.46 | +76.9% | +$186.00 |
| $51.14 | +99.0% | +$186.00 |
When traders use collar on UVXY
Collars on UVXY hedge an existing long UVXY etf position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
UVXY thesis for this collar
The market-implied 1-standard-deviation range for UVXY extends from approximately $19.33 on the downside to $32.07 on the upside. A UVXY collar hedges an existing long UVXY position with a protective put while financing the put cost via a short call; when the premiums roughly offset, the collar acts as a near-zero-cost insurance band around the current spot. Current UVXY IV rank near 13.97% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on UVXY at 86.42%. As a Financial Services name, UVXY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UVXY-specific events.
UVXY collar positions are structurally neutral (protective); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. UVXY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UVXY alongside the broader basket even when UVXY-specific fundamentals are unchanged. Always rebuild the position from current UVXY chain quotes before placing a trade.
Frequently asked questions
- What is a collar on UVXY?
- A collar on UVXY is the collar strategy applied to UVXY (etf). The strategy is structurally neutral (protective): A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot. With UVXY etf trading near $25.70, the strikes shown on this page are snapped to the nearest listed UVXY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UVXY collar max profit and max loss calculated?
- Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the UVXY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 86.42%), the computed maximum profit is $186.00 per contract and the computed maximum loss is -$114.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UVXY collar?
- The breakeven for the UVXY collar priced on this page is roughly $25.14 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current UVXY market-implied 1-standard-deviation expected move is approximately 24.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on UVXY?
- Collars on UVXY hedge an existing long UVXY etf position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
- How does current UVXY implied volatility affect this collar?
- UVXY ATM IV is at 86.42% with IV rank near 13.97%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.