How are DFNL 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 DFNL collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 20.10%), the computed maximum profit is $326.00 per contract and the computed maximum loss is -$274.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DFNL collar?

The breakeven for the DFNL collar priced on this page is roughly $52.74 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 DFNL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current DFNL implied volatility affect this collar?

DFNL ATM IV is at 20.10% with IV rank near 9.63%, 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.

DFNL Collar Strategy

DFNL (Davis Select Financial ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

DFNL holds a concentrated portfolio of financial services companies of all capitalization, from both developed and emerging markets. The funds active management takes a bottom-up, research-driven approach to the global financial sector. DFNL emphasizes individual security selection and focuses particularly on the quality of a companys management, business model and competitive advantages. The fund manager aims to purchase securities at a discount to intrinsic value, ideally holding these positions for at least five years. DFNLs definition of the financial sector is consistent with the 2016 GICS reclassification, meaning it excludes real estate firms and REITs (but includes mortgage REITs). DFNL launched in January 2017 from issuer Davis, an established asset manager that is new to ETFs.

DFNL (Davis Select Financial ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $472.4M, a beta of 0.83 versus the broader market, a 52-week range of 43.13-53.0899, average daily share volume of 42K, a public-listing history dating back to 2017. These structural characteristics shape how DFNL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.83 places DFNL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. DFNL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on DFNL?

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.

DFNL snapshot

As of August 14, 2026, spot at $53.03, ATM IV 20.10%, IV rank 9.63%, expected move 5.76%. The collar on DFNL 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 154-day expiry.

Why this collar structure on DFNL specifically: IV regime affects collar pricing on both sides; compressed DFNL IV at 20.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.76% (roughly $3.06 on the underlying). The 154-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DFNL expiries trade a higher absolute premium for lower per-day decay. Position sizing on DFNL should anchor to the underlying notional of $53.03 per share and to the trader's directional view on DFNL etf.

DFNL collar setup

The DFNL 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 DFNL at $53.03 on that close, the first option leg uses a $56.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DFNL chain at a 154-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 DFNL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$53.03	long
Sell 1	Call	$56.00	$1.64
Buy 1	Put	$50.00	$1.35

DFNL collar risk and reward

Net Premium / Debit: -$5,274.00
Max Profit (per contract): $326.00
Max Loss (per contract): -$274.00
Breakeven(s): $52.74
Risk / Reward Ratio: 1.190

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.

DFNL collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on DFNL. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$274.00
$11.73	-77.9%	-$274.00
$23.46	-55.8%	-$274.00
$35.18	-33.7%	-$274.00
$46.91	-11.5%	-$274.00
$58.63	+10.6%	+$326.00
$70.35	+32.7%	+$326.00
$82.08	+54.8%	+$326.00
$93.80	+76.9%	+$326.00
$105.53	+99.0%	+$326.00

When traders use collar on DFNL

Collars on DFNL hedge an existing long DFNL 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.

DFNL thesis for this collar

The market-implied 1-standard-deviation range for DFNL extends from approximately $49.97 on the downside to $56.09 on the upside. A DFNL collar hedges an existing long DFNL 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 DFNL IV rank near 9.63% 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 DFNL at 20.10%. As a Financial Services name, DFNL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DFNL-specific events.

DFNL 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. DFNL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DFNL alongside the broader basket even when DFNL-specific fundamentals are unchanged. Always rebuild the position from current DFNL chain quotes before placing a trade.

Frequently asked questions

What is a collar on DFNL?: A collar on DFNL is the collar strategy applied to DFNL (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 DFNL etf at $53.03 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed DFNL chain strike and the premiums come straight from that session's bid/ask midpoint.
How are DFNL 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 DFNL collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 20.10%), the computed maximum profit is $326.00 per contract and the computed maximum loss is -$274.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DFNL collar?: The breakeven for the DFNL collar priced on this page is roughly $52.74 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 DFNL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on DFNL?: Collars on DFNL hedge an existing long DFNL 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 DFNL implied volatility affect this collar?: DFNL ATM IV is at 20.10% with IV rank near 9.63%, 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.