UYM Collar Strategy
UYM (ProShares - Ultra Materials), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The ProShares Ultra Materials fund (UYM) endeavors to provide daily returns that are double (2x) the daily performance of the S&P Materials Select SectorSM Index. This objective is pursued before accounting for any associated fees and operating expenses.
UYM (ProShares - Ultra Materials) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $28.2M, a beta of 1.36 versus the broader market, a 52-week range of 21.34-34.54, average daily share volume of 11K, a public-listing history dating back to 2007. These structural characteristics shape how UYM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.36 indicates UYM has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. UYM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on UYM?
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.
UYM snapshot
As of September 29, 2026, spot at $27.24, ATM IV 53.20%, IV rank 30.83%, expected move 15.25%. The collar on UYM below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.
Why this collar structure on UYM specifically: IV regime affects collar pricing on both sides; mid-range UYM IV at 53.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 15.25% (roughly $4.15 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UYM expiries trade a higher absolute premium for lower per-day decay. Position sizing on UYM should anchor to the underlying notional of $27.24 per share and to the trader's directional view on UYM etf.
UYM collar setup
The UYM collar below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With UYM at $27.24 on that close, the first option leg uses a $29.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UYM chain at a 17-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 UYM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $27.24 | long |
| Sell 1 | Call | $29.00 | $0.63 |
| Buy 1 | Put | $26.00 | $0.70 |
UYM collar risk and reward
- Net Premium / Debit
- -$2,731.00
- Max Profit (per contract)
- $169.00
- Max Loss (per contract)
- -$131.00
- Breakeven(s)
- $27.31
- Risk / Reward Ratio
- 1.290
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.
UYM collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on UYM. 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% | -$131.00 |
| $6.03 | -77.9% | -$131.00 |
| $12.05 | -55.8% | -$131.00 |
| $18.08 | -33.6% | -$131.00 |
| $24.10 | -11.5% | -$131.00 |
| $30.12 | +10.6% | +$169.00 |
| $36.14 | +32.7% | +$169.00 |
| $42.16 | +54.8% | +$169.00 |
| $48.18 | +76.9% | +$169.00 |
| $54.21 | +99.0% | +$169.00 |
When traders use collar on UYM
Collars on UYM hedge an existing long UYM 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.
UYM thesis for this collar
The market-implied 1-standard-deviation range for UYM extends from approximately $23.09 on the downside to $31.39 on the upside. A UYM collar hedges an existing long UYM 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 UYM IV rank near 30.83% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on UYM should anchor more to the directional view and the expected-move geometry. As a Financial Services name, UYM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UYM-specific events.
UYM 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. UYM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UYM alongside the broader basket even when UYM-specific fundamentals are unchanged. Always rebuild the position from current UYM chain quotes before placing a trade.
Frequently asked questions
- What is a collar on UYM?
- A collar on UYM is the collar strategy applied to UYM (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 UYM etf at $27.24 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed UYM chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are UYM 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 UYM collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 53.20%), the computed maximum profit is $169.00 per contract and the computed maximum loss is -$131.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UYM collar?
- The breakeven for the UYM collar priced on this page is roughly $27.31 at expiration, derived from the September 29, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The UYM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.25%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on UYM?
- Collars on UYM hedge an existing long UYM 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 UYM implied volatility affect this collar?
- UYM ATM IV is at 53.20% with IV rank near 30.83%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.