RPG Collar Strategy
RPG (Invesco S&P 500 Pure Growth ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund is based on the S&P 500 Pure Growth Index, which measures the performance of securities in the S&P 500 Index that exhibit strong growth characteristics. The fund will generally invest at least 90% of its total assets in the securities that comprise the index.
RPG (Invesco S&P 500 Pure Growth ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.12B, a beta of 1.24 versus the broader market, a 52-week range of 43.41-63.72, average daily share volume of 658K, a public-listing history dating back to 2006. These structural characteristics shape how RPG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.24 places RPG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. RPG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on RPG?
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 RPG snapshot
As of June 30, 2026, spot at $63.91, ATM IV 25.60%, IV rank 27.90%, expected move 7.34%. The collar on RPG 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 17-day expiry.
Why this collar structure on RPG specifically: IV regime affects collar pricing on both sides; compressed RPG IV at 25.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.34% (roughly $4.69 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RPG expiries trade a higher absolute premium for lower per-day decay. Position sizing on RPG should anchor to the underlying notional of $63.91 per share and to the trader's directional view on RPG etf.
RPG collar setup
The RPG 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 RPG near $63.91, the first option leg uses a $67.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RPG chain at a 17-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 RPG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $63.91 | long |
| Sell 1 | Call | $67.00 | $0.41 |
| Buy 1 | Put | $61.00 | $0.44 |
RPG collar risk and reward
- Net Premium / Debit
- -$6,394.00
- Max Profit (per contract)
- $306.00
- Max Loss (per contract)
- -$294.00
- Breakeven(s)
- $63.94
- Risk / Reward Ratio
- 1.041
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.
RPG collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on RPG. 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% | -$294.00 |
| $14.14 | -77.9% | -$294.00 |
| $28.27 | -55.8% | -$294.00 |
| $42.40 | -33.7% | -$294.00 |
| $56.53 | -11.5% | -$294.00 |
| $70.66 | +10.6% | +$306.00 |
| $84.79 | +32.7% | +$306.00 |
| $98.92 | +54.8% | +$306.00 |
| $113.05 | +76.9% | +$306.00 |
| $127.18 | +99.0% | +$306.00 |
When traders use collar on RPG
Collars on RPG hedge an existing long RPG 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.
RPG thesis for this collar
The market-implied 1-standard-deviation range for RPG extends from approximately $59.22 on the downside to $68.60 on the upside. A RPG collar hedges an existing long RPG 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 RPG IV rank near 27.90% 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 RPG at 25.60%. As a Financial Services name, RPG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RPG-specific events.
RPG 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. RPG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RPG alongside the broader basket even when RPG-specific fundamentals are unchanged. Always rebuild the position from current RPG chain quotes before placing a trade.
Frequently asked questions
- What is a collar on RPG?
- A collar on RPG is the collar strategy applied to RPG (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 RPG etf trading near $63.91, the strikes shown on this page are snapped to the nearest listed RPG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RPG 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 RPG collar priced from the end-of-day chain at a 30-day expiry (ATM IV 25.60%), the computed maximum profit is $306.00 per contract and the computed maximum loss is -$294.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RPG collar?
- The breakeven for the RPG collar priced on this page is roughly $63.94 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 RPG market-implied 1-standard-deviation expected move is approximately 7.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on RPG?
- Collars on RPG hedge an existing long RPG 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 RPG implied volatility affect this collar?
- RPG ATM IV is at 25.60% with IV rank near 27.90%, 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.