DBJP Collar Strategy
DBJP (Xtrackers MSCI Japan Hedged Equity ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.
The Xtrackers MSCI Japan Hedged Equity ETF (known as the Fund) is designed to broadly mirror the investment performance of its benchmark, the MSCI Japan US Dollar Hedged Index (the Underlying Index), before accounting for any associated fees and expenses.
DBJP (Xtrackers MSCI Japan Hedged Equity ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $505.7M, a beta of 0.57 versus the broader market, a 52-week range of 81.66-118.75, average daily share volume of 41K, a public-listing history dating back to 2011. These structural characteristics shape how DBJP etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.57 indicates DBJP has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. DBJP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on DBJP?
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.
DBJP snapshot
As of August 14, 2026, spot at $120.26, ATM IV 20.80%, IV rank 21.19%, expected move 5.96%. The collar on DBJP below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on DBJP specifically: IV regime affects collar pricing on both sides; compressed DBJP IV at 20.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.96% (roughly $7.17 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DBJP expiries trade a higher absolute premium for lower per-day decay. Position sizing on DBJP should anchor to the underlying notional of $120.26 per share and to the trader's directional view on DBJP etf.
DBJP collar setup
The DBJP collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With DBJP at $120.26 on that close, the first option leg uses a $122.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DBJP chain at a 35-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 DBJP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $120.26 | long |
| Sell 1 | Call | $122.00 | $1.80 |
| Buy 1 | Put | $114.00 | $1.31 |
DBJP collar risk and reward
- Net Premium / Debit
- -$11,977.00
- Max Profit (per contract)
- $223.00
- Max Loss (per contract)
- -$577.00
- Breakeven(s)
- $119.77
- Risk / Reward Ratio
- 0.386
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.
DBJP collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on DBJP. 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% | -$577.00 |
| $26.60 | -77.9% | -$577.00 |
| $53.19 | -55.8% | -$577.00 |
| $79.78 | -33.7% | -$577.00 |
| $106.37 | -11.6% | -$577.00 |
| $132.96 | +10.6% | +$223.00 |
| $159.54 | +32.7% | +$223.00 |
| $186.13 | +54.8% | +$223.00 |
| $212.72 | +76.9% | +$223.00 |
| $239.31 | +99.0% | +$223.00 |
When traders use collar on DBJP
Collars on DBJP hedge an existing long DBJP 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.
DBJP thesis for this collar
The market-implied 1-standard-deviation range for DBJP extends from approximately $113.09 on the downside to $127.43 on the upside. A DBJP collar hedges an existing long DBJP 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 DBJP IV rank near 21.19% 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 DBJP at 20.80%. As a Financial Services name, DBJP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DBJP-specific events.
DBJP 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. DBJP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DBJP alongside the broader basket even when DBJP-specific fundamentals are unchanged. Always rebuild the position from current DBJP chain quotes before placing a trade.
Frequently asked questions
- What is a collar on DBJP?
- A collar on DBJP is the collar strategy applied to DBJP (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 DBJP etf at $120.26 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed DBJP chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are DBJP 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 DBJP collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 20.80%), the computed maximum profit is $223.00 per contract and the computed maximum loss is -$577.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DBJP collar?
- The breakeven for the DBJP collar priced on this page is roughly $119.77 at expiration, derived from the August 14, 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 DBJP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on DBJP?
- Collars on DBJP hedge an existing long DBJP 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 DBJP implied volatility affect this collar?
- DBJP ATM IV is at 20.80% with IV rank near 21.19%, 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.