RDIV Collar Strategy
RDIV (Invesco S&P Ultra Dividend Revenue ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Invesco S&P Ultra Dividend Revenue ETF (Fund) is based on the S&P 900 Dividend Revenue-Weighted Index (Index). The Fund will invest at least 90% of its total assets in securities that comprise the Index. The Index is constructed using a rule-based methodology that starts with the S&P 900 Index and (1) excludes the top 5% of securities by dividend yield, (2) excludes the top 5% of securities within each sector by dividend payout ratio, (3) selects the top sixty securities by dividend yield and (4) re-weights those securities according to the revenue earned by the companies, with a maximum 5% per company weighting. The Fund and Index are reconstituted and rebalanced quarterly according to dividend yields and revenue weightings. As of 08/31/2025 the Fund had an overall rating of 4 stars out of 378 funds and was rated 3 stars out of 378 funds, 5 stars out of 355 funds and 3 stars out of 282 funds for the 3-, 5- and 10- year periods, respectively. Source: Morningstar Inc.
RDIV (Invesco S&P Ultra Dividend Revenue ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $944.1M, a beta of 0.85 versus the broader market, a 52-week range of 45.9-57.51, average daily share volume of 58K, a public-listing history dating back to 2013. These structural characteristics shape how RDIV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.85 places RDIV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. RDIV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on RDIV?
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 RDIV snapshot
As of May 15, 2026, spot at $55.91, ATM IV 30.60%, IV rank 17.24%, expected move 8.77%. The collar on RDIV 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 34-day expiry.
Why this collar structure on RDIV specifically: IV regime affects collar pricing on both sides; compressed RDIV IV at 30.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.77% (roughly $4.90 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RDIV expiries trade a higher absolute premium for lower per-day decay. Position sizing on RDIV should anchor to the underlying notional of $55.91 per share and to the trader's directional view on RDIV etf.
RDIV collar setup
The RDIV 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 RDIV near $55.91, the first option leg uses a $59.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RDIV chain at a 34-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 RDIV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $55.91 | long |
| Sell 1 | Call | $59.00 | $1.01 |
| Buy 1 | Put | $53.00 | $0.90 |
RDIV collar risk and reward
- Net Premium / Debit
- -$5,580.00
- Max Profit (per contract)
- $320.00
- Max Loss (per contract)
- -$280.00
- Breakeven(s)
- $55.80
- Risk / Reward Ratio
- 1.143
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.
RDIV collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on RDIV. 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% | -$280.00 |
| $12.37 | -77.9% | -$280.00 |
| $24.73 | -55.8% | -$280.00 |
| $37.09 | -33.7% | -$280.00 |
| $49.45 | -11.5% | -$280.00 |
| $61.81 | +10.6% | +$320.00 |
| $74.18 | +32.7% | +$320.00 |
| $86.54 | +54.8% | +$320.00 |
| $98.90 | +76.9% | +$320.00 |
| $111.26 | +99.0% | +$320.00 |
When traders use collar on RDIV
Collars on RDIV hedge an existing long RDIV 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.
RDIV thesis for this collar
The market-implied 1-standard-deviation range for RDIV extends from approximately $51.01 on the downside to $60.81 on the upside. A RDIV collar hedges an existing long RDIV 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 RDIV IV rank near 17.24% 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 RDIV at 30.60%. As a Financial Services name, RDIV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RDIV-specific events.
RDIV 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. RDIV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RDIV alongside the broader basket even when RDIV-specific fundamentals are unchanged. Always rebuild the position from current RDIV chain quotes before placing a trade.
Frequently asked questions
- What is a collar on RDIV?
- A collar on RDIV is the collar strategy applied to RDIV (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 RDIV etf trading near $55.91, the strikes shown on this page are snapped to the nearest listed RDIV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RDIV 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 RDIV collar priced from the end-of-day chain at a 30-day expiry (ATM IV 30.60%), the computed maximum profit is $320.00 per contract and the computed maximum loss is -$280.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RDIV collar?
- The breakeven for the RDIV collar priced on this page is roughly $55.80 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 RDIV market-implied 1-standard-deviation expected move is approximately 8.77%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on RDIV?
- Collars on RDIV hedge an existing long RDIV 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 RDIV implied volatility affect this collar?
- RDIV ATM IV is at 30.60% with IV rank near 17.24%, 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.