RPHS Straddle Strategy

RPHS (Regents Park Hedged Market Strategy ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

The fund is an actively-managed ETF that seeks to achieve its investment objective by investing, under normal circumstances, in equity securities represented in, or instruments related or linked to, the S&P 500 Price Index (“S&P 500 Index”). The fund’s adviser determines the amount of the fund’s portfolio to be invested directly in a basket of equity securities that is correlated to the overall performance of the S&P 500 Index and in equity market index derivatives based on its assessment of their relative valuations.

RPHS (Regents Park Hedged Market Strategy ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $54.1M, a beta of 0.91 versus the broader market, a 52-week range of 9.49-11.49, average daily share volume of 15K, a public-listing history dating back to 2022. These structural characteristics shape how RPHS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.91 places RPHS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. RPHS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a straddle on RPHS?

A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.

Current RPHS snapshot

As of May 15, 2026, spot at $10.85, ATM IV 51.40%, IV rank 6.19%, expected move 14.74%. The straddle on RPHS 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 straddle structure on RPHS specifically: RPHS IV at 51.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a RPHS straddle, with a market-implied 1-standard-deviation move of approximately 14.74% (roughly $1.60 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 RPHS expiries trade a higher absolute premium for lower per-day decay. Position sizing on RPHS should anchor to the underlying notional of $10.85 per share and to the trader's directional view on RPHS etf.

RPHS straddle setup

The RPHS straddle below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With RPHS near $10.85, the first option leg uses a $10.85 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RPHS 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 RPHS shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Buy 1Call$10.85N/A
Buy 1Put$10.85N/A

RPHS straddle 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

Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.

RPHS straddle payoff curve

Modeled P&L at expiration across a range of underlying prices for the straddle on RPHS. 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 straddle on RPHS

Straddles on RPHS are pure-volatility plays that profit from large moves in either direction; traders typically buy RPHS straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.

RPHS thesis for this straddle

The market-implied 1-standard-deviation range for RPHS extends from approximately $9.25 on the downside to $12.45 on the upside. A RPHS long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. Current RPHS IV rank near 6.19% 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 RPHS at 51.40%. As a Financial Services name, RPHS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RPHS-specific events.

RPHS straddle positions are structurally neutral / high-volatility (long premium); 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. RPHS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RPHS alongside the broader basket even when RPHS-specific fundamentals are unchanged. Always rebuild the position from current RPHS chain quotes before placing a trade.

Frequently asked questions

What is a straddle on RPHS?
A straddle on RPHS is the straddle strategy applied to RPHS (etf). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. With RPHS etf trading near $10.85, the strikes shown on this page are snapped to the nearest listed RPHS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RPHS straddle max profit and max loss calculated?
Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the RPHS straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 51.40%), 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 RPHS straddle?
The breakeven for the RPHS straddle 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 RPHS market-implied 1-standard-deviation expected move is approximately 14.74%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a straddle on RPHS?
Straddles on RPHS are pure-volatility plays that profit from large moves in either direction; traders typically buy RPHS straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
How does current RPHS implied volatility affect this straddle?
RPHS ATM IV is at 51.40% with IV rank near 6.19%, 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.

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