REAI Collar Strategy
REAI (Intelligent Real Estate ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
REAI aims to remove the restrictions of investing in non-traded REITs, such as low liquidity, high expenses, and gate provisions. The biggest differences between listed REITs and non-traded REITs are dividend distribution, capital formation, and how each invests. REAI actively manages a portfolio of 20-50 publicly traded REITs while aiming to provide similar risk and returns of non-traded REITs. Dividend distributions may be lower than those from non-traded REITs. However, the use of listed REITs may provide more safeguards to end investors. The funds assets will be allocated to resemble the geographic and thematic exposure of real estate private equity.
REAI (Intelligent Real Estate ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $3.8M, a beta of 1.03 versus the broader market, a 52-week range of 18.296-21.922, average daily share volume of 0K, a public-listing history dating back to 2023. These structural characteristics shape how REAI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.03 places REAI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. REAI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on REAI?
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 REAI snapshot
As of May 15, 2026, spot at $21.07, ATM IV 57.30%, IV rank 10.80%, expected move 16.43%. The collar on REAI 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 REAI specifically: IV regime affects collar pricing on both sides; compressed REAI IV at 57.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 16.43% (roughly $3.46 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 REAI expiries trade a higher absolute premium for lower per-day decay. Position sizing on REAI should anchor to the underlying notional of $21.07 per share and to the trader's directional view on REAI etf.
REAI collar setup
The REAI 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 REAI near $21.07, the first option leg uses a $22.12 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed REAI 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 REAI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $21.07 | long |
| Sell 1 | Call | $22.12 | N/A |
| Buy 1 | Put | $20.02 | N/A |
REAI 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.
REAI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on REAI. 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 REAI
Collars on REAI hedge an existing long REAI 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.
REAI thesis for this collar
The market-implied 1-standard-deviation range for REAI extends from approximately $17.61 on the downside to $24.53 on the upside. A REAI collar hedges an existing long REAI 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 REAI IV rank near 10.80% 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 REAI at 57.30%. As a Financial Services name, REAI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to REAI-specific events.
REAI 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. REAI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move REAI alongside the broader basket even when REAI-specific fundamentals are unchanged. Always rebuild the position from current REAI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on REAI?
- A collar on REAI is the collar strategy applied to REAI (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 REAI etf trading near $21.07, the strikes shown on this page are snapped to the nearest listed REAI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are REAI 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 REAI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 57.30%), 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 REAI collar?
- The breakeven for the REAI 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 REAI market-implied 1-standard-deviation expected move is approximately 16.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on REAI?
- Collars on REAI hedge an existing long REAI 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 REAI implied volatility affect this collar?
- REAI ATM IV is at 57.30% with IV rank near 10.80%, 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.