DBMF Collar Strategy
DBMF (iMGP DBi Managed Futures Strategy ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund utilizes a multi-pronged strategy to achieve its investment objectives. Primarily, it dedicates its assets to a managed futures investment approach. Furthermore, it may channel up to 20% of its total capital into a fully-owned offshore subsidiary. This entity, legally established in the Cayman Islands and guided by the Sub-Advisor, will consistently align with the fund's main investment goals and rules. Lastly, for managing cash flow and other operational requirements, the fund directly acquires specific debt securities. It is important to note that this fund is structured as a non-diversified investment.
DBMF (iMGP DBi Managed Futures Strategy ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.60B, a beta of 0.09 versus the broader market, a 52-week range of 25.34-31.66, average daily share volume of 1.6M, a public-listing history dating back to 2019. These structural characteristics shape how DBMF etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.09 indicates DBMF has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. DBMF pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on DBMF?
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 DBMF snapshot
As of June 29, 2026, spot at $30.37, ATM IV 47.00%, IV rank 9.57%, expected move 13.47%. The collar on DBMF 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 18-day expiry.
Why this collar structure on DBMF specifically: IV regime affects collar pricing on both sides; compressed DBMF IV at 47.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.47% (roughly $4.09 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DBMF expiries trade a higher absolute premium for lower per-day decay. Position sizing on DBMF should anchor to the underlying notional of $30.37 per share and to the trader's directional view on DBMF etf.
DBMF collar setup
The DBMF 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 DBMF near $30.37, the first option leg uses a $31.89 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DBMF chain at a 18-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 DBMF shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $30.37 | long |
| Sell 1 | Call | $31.89 | N/A |
| Buy 1 | Put | $28.85 | N/A |
DBMF 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.
DBMF collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on DBMF. 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 DBMF
Collars on DBMF hedge an existing long DBMF 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.
DBMF thesis for this collar
The market-implied 1-standard-deviation range for DBMF extends from approximately $26.28 on the downside to $34.46 on the upside. A DBMF collar hedges an existing long DBMF 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 DBMF IV rank near 9.57% 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 DBMF at 47.00%. As a Financial Services name, DBMF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DBMF-specific events.
DBMF 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. DBMF positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DBMF alongside the broader basket even when DBMF-specific fundamentals are unchanged. Always rebuild the position from current DBMF chain quotes before placing a trade.
Frequently asked questions
- What is a collar on DBMF?
- A collar on DBMF is the collar strategy applied to DBMF (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 DBMF etf trading near $30.37, the strikes shown on this page are snapped to the nearest listed DBMF chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DBMF 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 DBMF collar priced from the end-of-day chain at a 30-day expiry (ATM IV 47.00%), 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 DBMF collar?
- The breakeven for the DBMF 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 DBMF market-implied 1-standard-deviation expected move is approximately 13.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on DBMF?
- Collars on DBMF hedge an existing long DBMF 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 DBMF implied volatility affect this collar?
- DBMF ATM IV is at 47.00% with IV rank near 9.57%, 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.