DBEM Collar Strategy
DBEM (Xtrackers MSCI Emerging Markets Hedged Equity ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Xtrackers MSCI Emerging Markets Hedged Equity ETF (the “Fund”) seeks investment results that correspond generally to the performance, before fees and expenses, of the MSCI EM US Dollar Hedged Index (the “Underlying Index”).
DBEM (Xtrackers MSCI Emerging Markets Hedged Equity ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $96.2M, a beta of 0.87 versus the broader market, a 52-week range of 25.92-40.551, average daily share volume of 9K, a public-listing history dating back to 2011. These structural characteristics shape how DBEM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.87 places DBEM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. DBEM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on DBEM?
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 DBEM snapshot
As of May 15, 2026, spot at $39.12, ATM IV 27.70%, IV rank 17.80%, expected move 7.94%. The collar on DBEM 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 98-day expiry.
Why this collar structure on DBEM specifically: IV regime affects collar pricing on both sides; compressed DBEM IV at 27.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.94% (roughly $3.11 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DBEM expiries trade a higher absolute premium for lower per-day decay. Position sizing on DBEM should anchor to the underlying notional of $39.12 per share and to the trader's directional view on DBEM etf.
DBEM collar setup
The DBEM 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 DBEM near $39.12, the first option leg uses a $41.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DBEM chain at a 98-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 DBEM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $39.12 | long |
| Sell 1 | Call | $41.00 | $1.38 |
| Buy 1 | Put | $37.00 | $1.18 |
DBEM collar risk and reward
- Net Premium / Debit
- -$3,892.00
- Max Profit (per contract)
- $208.00
- Max Loss (per contract)
- -$192.00
- Breakeven(s)
- $38.92
- Risk / Reward Ratio
- 1.083
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.
DBEM collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on DBEM. 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% | -$192.00 |
| $8.66 | -77.9% | -$192.00 |
| $17.31 | -55.8% | -$192.00 |
| $25.96 | -33.7% | -$192.00 |
| $34.60 | -11.5% | -$192.00 |
| $43.25 | +10.6% | +$208.00 |
| $51.90 | +32.7% | +$208.00 |
| $60.55 | +54.8% | +$208.00 |
| $69.20 | +76.9% | +$208.00 |
| $77.85 | +99.0% | +$208.00 |
When traders use collar on DBEM
Collars on DBEM hedge an existing long DBEM 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.
DBEM thesis for this collar
The market-implied 1-standard-deviation range for DBEM extends from approximately $36.01 on the downside to $42.23 on the upside. A DBEM collar hedges an existing long DBEM 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 DBEM IV rank near 17.80% 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 DBEM at 27.70%. As a Financial Services name, DBEM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DBEM-specific events.
DBEM 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. DBEM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DBEM alongside the broader basket even when DBEM-specific fundamentals are unchanged. Always rebuild the position from current DBEM chain quotes before placing a trade.
Frequently asked questions
- What is a collar on DBEM?
- A collar on DBEM is the collar strategy applied to DBEM (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 DBEM etf trading near $39.12, the strikes shown on this page are snapped to the nearest listed DBEM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DBEM 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 DBEM collar priced from the end-of-day chain at a 30-day expiry (ATM IV 27.70%), the computed maximum profit is $208.00 per contract and the computed maximum loss is -$192.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DBEM collar?
- The breakeven for the DBEM collar priced on this page is roughly $38.92 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 DBEM market-implied 1-standard-deviation expected move is approximately 7.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on DBEM?
- Collars on DBEM hedge an existing long DBEM 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 DBEM implied volatility affect this collar?
- DBEM ATM IV is at 27.70% with IV rank near 17.80%, 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.