DHT Collar Strategy
DHT (DHT Holdings, Inc.), in the Energy sector, (Oil & Gas Midstream industry), listed on NYSE.
DHT Holdings, Inc., through its subsidiaries, owns and operates crude oil tankers primarily in Monaco, Singapore, and Norway. As of March 17, 2022, it had a fleet of 26 very large crude carriers with a capacity of 8,043,657 deadweight tons. The company was incorporated in 2005 and is headquartered in Hamilton, Bermuda.
DHT (DHT Holdings, Inc.) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $2.87B, a trailing P/E of 8.65, a beta of -0.09 versus the broader market, a 52-week range of 10.61-20.55, average daily share volume of 4.8M, a public-listing history dating back to 2005, approximately 924 full-time employees. These structural characteristics shape how DHT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.09 indicates DHT has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 8.65 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. DHT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on DHT?
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 DHT snapshot
As of May 15, 2026, spot at $17.57, ATM IV 44.40%, IV rank 43.30%, expected move 12.73%. The collar on DHT 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 63-day expiry.
Why this collar structure on DHT specifically: IV regime affects collar pricing on both sides; mid-range DHT IV at 44.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.73% (roughly $2.24 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DHT expiries trade a higher absolute premium for lower per-day decay. Position sizing on DHT should anchor to the underlying notional of $17.57 per share and to the trader's directional view on DHT stock.
DHT collar setup
The DHT 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 DHT near $17.57, the first option leg uses a $18.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DHT chain at a 63-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 DHT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $17.57 | long |
| Sell 1 | Call | $18.00 | $0.95 |
| Buy 1 | Put | $17.00 | $1.30 |
DHT collar risk and reward
- Net Premium / Debit
- -$1,792.00
- Max Profit (per contract)
- $8.00
- Max Loss (per contract)
- -$92.00
- Breakeven(s)
- $17.93
- Risk / Reward Ratio
- 0.087
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.
DHT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on DHT. 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 | -99.9% | -$92.00 |
| $3.89 | -77.8% | -$92.00 |
| $7.78 | -55.7% | -$92.00 |
| $11.66 | -33.6% | -$92.00 |
| $15.54 | -11.5% | -$92.00 |
| $19.43 | +10.6% | +$8.00 |
| $23.31 | +32.7% | +$8.00 |
| $27.20 | +54.8% | +$8.00 |
| $31.08 | +76.9% | +$8.00 |
| $34.96 | +99.0% | +$8.00 |
When traders use collar on DHT
Collars on DHT hedge an existing long DHT stock 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.
DHT thesis for this collar
The market-implied 1-standard-deviation range for DHT extends from approximately $15.33 on the downside to $19.81 on the upside. A DHT collar hedges an existing long DHT 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 DHT IV rank near 43.30% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on DHT should anchor more to the directional view and the expected-move geometry. As a Energy name, DHT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DHT-specific events.
DHT 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. DHT positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DHT alongside the broader basket even when DHT-specific fundamentals are unchanged. Always rebuild the position from current DHT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on DHT?
- A collar on DHT is the collar strategy applied to DHT (stock). 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 DHT stock trading near $17.57, the strikes shown on this page are snapped to the nearest listed DHT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DHT 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 DHT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 44.40%), the computed maximum profit is $8.00 per contract and the computed maximum loss is -$92.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DHT collar?
- The breakeven for the DHT collar priced on this page is roughly $17.93 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 DHT market-implied 1-standard-deviation expected move is approximately 12.73%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on DHT?
- Collars on DHT hedge an existing long DHT stock 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 DHT implied volatility affect this collar?
- DHT ATM IV is at 44.40% with IV rank near 43.30%, 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.