RODM Collar Strategy
RODM (Hartford Multifactor Developed Markets (ex-US) ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Hartford Multifactor Developed Markets (ex-US) ETF ("RODM") seeks to provide investment results that, before fees and expenses, correspond to the total return performance of an index that tracks the performance of companies located in major developed markets of Europe, Canada and the Pacific Region.
RODM (Hartford Multifactor Developed Markets (ex-US) ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.50B, a beta of 0.77 versus the broader market, a 52-week range of 32.66-41.52, average daily share volume of 110K, a public-listing history dating back to 2015. These structural characteristics shape how RODM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.77 places RODM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. RODM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on RODM?
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 RODM snapshot
As of May 15, 2026, spot at $40.87, ATM IV 22.10%, IV rank 12.27%, expected move 6.34%. The collar on RODM 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 RODM specifically: IV regime affects collar pricing on both sides; compressed RODM IV at 22.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.34% (roughly $2.59 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 RODM expiries trade a higher absolute premium for lower per-day decay. Position sizing on RODM should anchor to the underlying notional of $40.87 per share and to the trader's directional view on RODM etf.
RODM collar setup
The RODM 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 RODM near $40.87, the first option leg uses a $42.91 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RODM 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 RODM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $40.87 | long |
| Sell 1 | Call | $42.91 | N/A |
| Buy 1 | Put | $38.83 | N/A |
RODM 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.
RODM collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on RODM. 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 RODM
Collars on RODM hedge an existing long RODM 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.
RODM thesis for this collar
The market-implied 1-standard-deviation range for RODM extends from approximately $38.28 on the downside to $43.46 on the upside. A RODM collar hedges an existing long RODM 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 RODM IV rank near 12.27% 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 RODM at 22.10%. As a Financial Services name, RODM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RODM-specific events.
RODM 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. RODM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RODM alongside the broader basket even when RODM-specific fundamentals are unchanged. Always rebuild the position from current RODM chain quotes before placing a trade.
Frequently asked questions
- What is a collar on RODM?
- A collar on RODM is the collar strategy applied to RODM (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 RODM etf trading near $40.87, the strikes shown on this page are snapped to the nearest listed RODM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RODM 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 RODM collar priced from the end-of-day chain at a 30-day expiry (ATM IV 22.10%), 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 RODM collar?
- The breakeven for the RODM 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 RODM market-implied 1-standard-deviation expected move is approximately 6.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on RODM?
- Collars on RODM hedge an existing long RODM 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 RODM implied volatility affect this collar?
- RODM ATM IV is at 22.10% with IV rank near 12.27%, 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.