RSST Collar Strategy
RSST (Return Stacked U.S. Stocks & Managed Futures ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
Tidal Trust II - Return Stacked U.S. Stocks & Managed Futures ETF is an exchange traded fund launched and managed by Tidal Investments LLC. The fund is co-managed by Newfound Research LLC, Resolve Asset Management Inc and Resolve Asset Management Sezc. The fund invests in public equity, fixed income, commodity, and currency markets of the United States. For its equity portion, it invests directly, through other funds and through derivatives in stocks of companies operating across diversified sectors. The fund employs long/short strategy and uses derivatives such as futures to create its portfolio.
RSST (Return Stacked U.S. Stocks & Managed Futures ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $510.7M, a beta of 1.13 versus the broader market, a 52-week range of 25.86-36.08, average daily share volume of 122K, a public-listing history dating back to 2023, approximately 172 full-time employees. These structural characteristics shape how RSST etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.13 places RSST roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. RSST pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on RSST?
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.
RSST snapshot
As of September 29, 2026, spot at $35.45, ATM IV 232.80%, expected move 66.74%. The collar on RSST below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 80-day expiry.
Why this collar structure on RSST specifically: IV rank is unavailable in the current snapshot, so regime-based timing for RSST is inferred from ATM IV at 232.80% alone, with a market-implied 1-standard-deviation move of approximately 66.74% (roughly $23.66 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RSST expiries trade a higher absolute premium for lower per-day decay. Position sizing on RSST should anchor to the underlying notional of $35.45 per share and to the trader's directional view on RSST etf.
RSST collar setup
The RSST collar below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With RSST at $35.45 on that close, the first option leg uses a $37.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RSST chain at a 80-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 RSST shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $35.45 | long |
| Sell 1 | Call | $37.00 | $0.68 |
| Buy 1 | Put | $34.00 | $0.50 |
RSST collar risk and reward
- Net Premium / Debit
- -$3,527.00
- Max Profit (per contract)
- $173.00
- Max Loss (per contract)
- -$127.00
- Breakeven(s)
- $35.27
- Risk / Reward Ratio
- 1.362
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.
RSST collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on RSST. 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% | -$127.00 |
| $7.85 | -77.9% | -$127.00 |
| $15.68 | -55.8% | -$127.00 |
| $23.52 | -33.6% | -$127.00 |
| $31.36 | -11.5% | -$127.00 |
| $39.20 | +10.6% | +$173.00 |
| $47.03 | +32.7% | +$173.00 |
| $54.87 | +54.8% | +$173.00 |
| $62.71 | +76.9% | +$173.00 |
| $70.54 | +99.0% | +$173.00 |
When traders use collar on RSST
Collars on RSST hedge an existing long RSST 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.
RSST thesis for this collar
The market-implied 1-standard-deviation range for RSST extends from approximately $11.79 on the downside to $59.11 on the upside. A RSST collar hedges an existing long RSST 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. As a Financial Services name, RSST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RSST-specific events.
RSST 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. RSST positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RSST alongside the broader basket even when RSST-specific fundamentals are unchanged. Always rebuild the position from current RSST chain quotes before placing a trade.
Frequently asked questions
- What is a collar on RSST?
- A collar on RSST is the collar strategy applied to RSST (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 RSST etf at $35.45 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed RSST chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are RSST 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 RSST collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 232.80%), the computed maximum profit is $173.00 per contract and the computed maximum loss is -$127.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RSST collar?
- The breakeven for the RSST collar priced on this page is roughly $35.27 at expiration, derived from the September 29, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The RSST market-implied 1-standard-deviation expected move in the same options snapshot is approximately 66.74%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on RSST?
- Collars on RSST hedge an existing long RSST 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 RSST implied volatility affect this collar?
- Current RSST ATM IV is 232.80%; IV rank context is unavailable in the current snapshot.