How are DFSV 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 DFSV collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 34.90%), the computed maximum profit is $224.00 per contract and the computed maximum loss is -$176.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DFSV collar?

The breakeven for the DFSV collar priced on this page is roughly $37.76 at expiration, derived from the September 29, 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 DFSV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current DFSV implied volatility affect this collar?

DFSV ATM IV is at 34.90% with IV rank near 33.09%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

DFSV Collar Strategy

DFSV (Dimensional - US Small Cap Value ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

This fund utilizes a market-capitalization weighted methodology to invest in a broad and diverse selection of readily tradable securities from U.S. small-cap companies, identified by the Advisor as value stocks. This approach means that companies with higher market capitalizations generally hold a more substantial proportion within the portfolio compared to those with lower market capitalizations. Under normal operating conditions, and as a flexible guideline, the portfolio aims to commit at least 80% of its net assets to equities of small-capitalization U.S. firms.

DFSV (Dimensional - US Small Cap Value ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $7.66B, a beta of 1.04 versus the broader market, a 52-week range of 30.32-40.95, average daily share volume of 925K, a public-listing history dating back to 2022. These structural characteristics shape how DFSV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.04 places DFSV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. DFSV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on DFSV?

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.

DFSV snapshot

As of September 29, 2026, spot at $37.80, ATM IV 34.90%, IV rank 33.09%, expected move 10.01%. The collar on DFSV below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 52-day expiry.

Why this collar structure on DFSV specifically: IV regime affects collar pricing on both sides; mid-range DFSV IV at 34.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.01% (roughly $3.78 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DFSV expiries trade a higher absolute premium for lower per-day decay. Position sizing on DFSV should anchor to the underlying notional of $37.80 per share and to the trader's directional view on DFSV etf.

DFSV collar setup

The DFSV collar below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With DFSV at $37.80 on that close, the first option leg uses a $40.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DFSV chain at a 52-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 DFSV shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$37.80	long
Sell 1	Call	$40.00	$0.70
Buy 1	Put	$36.00	$0.66

DFSV collar risk and reward

Net Premium / Debit: -$3,776.00
Max Profit (per contract): $224.00
Max Loss (per contract): -$176.00
Breakeven(s): $37.76
Risk / Reward Ratio: 1.273

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.

DFSV collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on DFSV. 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%	-$176.00
$8.37	-77.9%	-$176.00
$16.72	-55.8%	-$176.00
$25.08	-33.7%	-$176.00
$33.44	-11.5%	-$176.00
$41.79	+10.6%	+$224.00
$50.15	+32.7%	+$224.00
$58.51	+54.8%	+$224.00
$66.86	+76.9%	+$224.00
$75.22	+99.0%	+$224.00

When traders use collar on DFSV

Collars on DFSV hedge an existing long DFSV 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.

DFSV thesis for this collar

The market-implied 1-standard-deviation range for DFSV extends from approximately $34.02 on the downside to $41.58 on the upside. A DFSV collar hedges an existing long DFSV 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 DFSV IV rank near 33.09% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on DFSV should anchor more to the directional view and the expected-move geometry. As a Financial Services name, DFSV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DFSV-specific events.

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

Frequently asked questions

What is a collar on DFSV?: A collar on DFSV is the collar strategy applied to DFSV (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 DFSV etf at $37.80 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed DFSV chain strike and the premiums come straight from that session's bid/ask midpoint.
How are DFSV 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 DFSV collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 34.90%), the computed maximum profit is $224.00 per contract and the computed maximum loss is -$176.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DFSV collar?: The breakeven for the DFSV collar priced on this page is roughly $37.76 at expiration, derived from the September 29, 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 DFSV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on DFSV?: Collars on DFSV hedge an existing long DFSV 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 DFSV implied volatility affect this collar?: DFSV ATM IV is at 34.90% with IV rank near 33.09%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.