VIXY Collar Strategy
VIXY (ProShares - VIX Short-Term Futures ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on CBOE.
The ProShares VIX Short-Term Futures ETF (VIXY) is structured with the primary objective of replicating the investment performance of the S&P 500 VIX Short-Term Futures Index. This goal is assessed prior to the deduction of the fund's operational fees and expenses.
VIXY (ProShares - VIX Short-Term Futures ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $215.8M, a beta of -2.33 versus the broader market, a 52-week range of 21.17-47.78, average daily share volume of 3.4M, a public-listing history dating back to 2011. These structural characteristics shape how VIXY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -2.33 indicates VIXY 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 VIXY?
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 VIXY snapshot
As of June 30, 2026, spot at $21.26, ATM IV 43.60%, IV rank 8.66%, expected move 12.50%. The collar on VIXY 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 17-day expiry.
Why this collar structure on VIXY specifically: IV regime affects collar pricing on both sides; compressed VIXY IV at 43.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.50% (roughly $2.66 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 VIXY expiries trade a higher absolute premium for lower per-day decay. Position sizing on VIXY should anchor to the underlying notional of $21.26 per share and to the trader's directional view on VIXY etf.
VIXY collar setup
The VIXY 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 VIXY near $21.26, the first option leg uses a $22.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VIXY 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 VIXY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $21.26 | long |
| Sell 1 | Call | $22.00 | $0.60 |
| Buy 1 | Put | $20.00 | $0.22 |
VIXY collar risk and reward
- Net Premium / Debit
- -$2,088.00
- Max Profit (per contract)
- $112.00
- Max Loss (per contract)
- -$88.00
- Breakeven(s)
- $20.88
- Risk / Reward Ratio
- 1.273
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.
VIXY collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on VIXY. 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% | -$88.00 |
| $4.71 | -77.8% | -$88.00 |
| $9.41 | -55.7% | -$88.00 |
| $14.11 | -33.6% | -$88.00 |
| $18.81 | -11.5% | -$88.00 |
| $23.51 | +10.6% | +$112.00 |
| $28.21 | +32.7% | +$112.00 |
| $32.91 | +54.8% | +$112.00 |
| $37.61 | +76.9% | +$112.00 |
| $42.31 | +99.0% | +$112.00 |
When traders use collar on VIXY
Collars on VIXY hedge an existing long VIXY 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.
VIXY thesis for this collar
The market-implied 1-standard-deviation range for VIXY extends from approximately $18.60 on the downside to $23.92 on the upside. A VIXY collar hedges an existing long VIXY 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 VIXY IV rank near 8.66% 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 VIXY at 43.60%. As a Financial Services name, VIXY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VIXY-specific events.
VIXY 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. VIXY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move VIXY alongside the broader basket even when VIXY-specific fundamentals are unchanged. Always rebuild the position from current VIXY chain quotes before placing a trade.
Frequently asked questions
- What is a collar on VIXY?
- A collar on VIXY is the collar strategy applied to VIXY (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 VIXY etf trading near $21.26, the strikes shown on this page are snapped to the nearest listed VIXY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are VIXY 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 VIXY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 43.60%), the computed maximum profit is $112.00 per contract and the computed maximum loss is -$88.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a VIXY collar?
- The breakeven for the VIXY collar priced on this page is roughly $20.88 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 VIXY market-implied 1-standard-deviation expected move is approximately 12.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on VIXY?
- Collars on VIXY hedge an existing long VIXY 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 VIXY implied volatility affect this collar?
- VIXY ATM IV is at 43.60% with IV rank near 8.66%, 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.