UE Collar Strategy
UE (Urban Edge Properties), in the Real Estate sector, (REIT - Diversified industry), listed on NYSE.
Urban Edge Properties is a NYSE listed real estate investment trust focused on managing, acquiring, developing, and redeveloping retail real estate in urban communities, primarily in the New York metropolitan region. Urban Edge owns 78 properties totaling 15.1 million square feet of gross leasable area.
UE (Urban Edge Properties) trades in the Real Estate sector, specifically REIT - Diversified, with a market capitalization of approximately $2.70B, a trailing P/E of 24.95, a beta of 1.01 versus the broader market, a 52-week range of 17.46-22.26, average daily share volume of 933K, a public-listing history dating back to 2015, approximately 109 full-time employees. These structural characteristics shape how UE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.01 places UE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. UE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on UE?
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 UE snapshot
As of May 15, 2026, spot at $21.30, ATM IV 65.70%, IV rank 23.69%, expected move 18.84%. The collar on UE 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 34-day expiry.
Why this collar structure on UE specifically: IV regime affects collar pricing on both sides; compressed UE IV at 65.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 18.84% (roughly $4.01 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UE expiries trade a higher absolute premium for lower per-day decay. Position sizing on UE should anchor to the underlying notional of $21.30 per share and to the trader's directional view on UE stock.
UE collar setup
The UE 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 UE near $21.30, the first option leg uses a $22.37 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UE chain at a 34-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 UE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $21.30 | long |
| Sell 1 | Call | $22.37 | N/A |
| Buy 1 | Put | $20.24 | N/A |
UE collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
UE collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on UE. 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.
When traders use collar on UE
Collars on UE hedge an existing long UE stock 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.
UE thesis for this collar
The market-implied 1-standard-deviation range for UE extends from approximately $17.29 on the downside to $25.31 on the upside. A UE collar hedges an existing long UE 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 UE IV rank near 23.69% 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 UE at 65.70%. As a Real Estate name, UE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UE-specific events.
UE 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. UE positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UE alongside the broader basket even when UE-specific fundamentals are unchanged. Always rebuild the position from current UE chain quotes before placing a trade.
Frequently asked questions
- What is a collar on UE?
- A collar on UE is the collar strategy applied to UE (stock). 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 UE stock trading near $21.30, the strikes shown on this page are snapped to the nearest listed UE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UE 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 UE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 65.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UE collar?
- The breakeven for the UE collar priced on this page is no defined breakeven on the modeled curve 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 UE market-implied 1-standard-deviation expected move is approximately 18.84%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on UE?
- Collars on UE hedge an existing long UE stock 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 UE implied volatility affect this collar?
- UE ATM IV is at 65.70% with IV rank near 23.69%, 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.