How are RAM 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 RAM collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 132.50%), the computed maximum profit is $114.00 per contract and the computed maximum loss is -$86.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RAM collar?

The breakeven for the RAM collar priced on this page is roughly $12.86 at expiration, derived from the August 14, 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 RAM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 37.99%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RAM implied volatility affect this collar?

RAM ATM IV is at 132.50% with IV rank near 51.14%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

RAM Collar Strategy

RAM (Roundhill T-REX 2X Long DRAM Daily Target ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

RAM seeking daily leveraged exposure is very different from most other exchange-traded funds. As a result, RAM may be riskier than alternatives that do not use leverage. The ETF's investment objective is to magnify (200%) the daily performance of the shares of the Issuers own Memory ETF, ticker: DRAM. The return for investors that invest for periods longer or shorter than a trading day should not be expected to be 200% of the performance of DRAM for the period. The return of the Fund for a period longer than a trading day will be the result of each trading day's compounded return over the period, which will very likely differ from 200% of the return of DRAM for that period. Longer holding periods, higher volatility of DRAM, and leverage increase the impact of compounding on an investor's returns.

RAM (Roundhill T-REX 2X Long DRAM Daily Target ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $457.5M, a beta of 0.00 versus the broader market, a 52-week range of 8.29-33.11, average daily share volume of 16.7M, a public-listing history dating back to 2026. These structural characteristics shape how RAM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.00 indicates RAM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a collar on RAM?

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.

RAM snapshot

As of August 14, 2026, spot at $13.11, ATM IV 132.50%, IV rank 51.14%, expected move 37.99%. The collar on RAM below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this collar structure on RAM specifically: IV regime affects collar pricing on both sides; mid-range RAM IV at 132.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 37.99% (roughly $4.98 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RAM expiries trade a higher absolute premium for lower per-day decay. Position sizing on RAM should anchor to the underlying notional of $13.11 per share and to the trader's directional view on RAM stock.

RAM collar setup

The RAM collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With RAM at $13.11 on that close, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RAM chain at a 35-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 RAM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$13.11	long
Sell 1	Call	$14.00	$1.78
Buy 1	Put	$12.00	$1.53

RAM collar risk and reward

Net Premium / Debit: -$1,286.00
Max Profit (per contract): $114.00
Max Loss (per contract): -$86.00
Breakeven(s): $12.86
Risk / Reward Ratio: 1.326

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.

RAM collar payoff curve

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

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$86.00
$2.91	-77.8%	-$86.00
$5.81	-55.7%	-$86.00
$8.70	-33.6%	-$86.00
$11.60	-11.5%	-$86.00
$14.50	+10.6%	+$114.00
$17.40	+32.7%	+$114.00
$20.29	+54.8%	+$114.00
$23.19	+76.9%	+$114.00
$26.09	+99.0%	+$114.00

When traders use collar on RAM

Collars on RAM hedge an existing long RAM stock 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.

RAM thesis for this collar

The market-implied 1-standard-deviation range for RAM extends from approximately $8.13 on the downside to $18.09 on the upside. A RAM collar hedges an existing long RAM 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 RAM IV rank near 51.14% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on RAM should anchor more to the directional view and the expected-move geometry. As a Financial Services name, RAM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RAM-specific events.

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

Frequently asked questions

What is a collar on RAM?: A collar on RAM is the collar strategy applied to RAM (stock). 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 RAM stock at $13.11 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed RAM chain strike and the premiums come straight from that session's bid/ask midpoint.
How are RAM 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 RAM collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 132.50%), the computed maximum profit is $114.00 per contract and the computed maximum loss is -$86.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RAM collar?: The breakeven for the RAM collar priced on this page is roughly $12.86 at expiration, derived from the August 14, 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 RAM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 37.99%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on RAM?: Collars on RAM hedge an existing long RAM stock 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 RAM implied volatility affect this collar?: RAM ATM IV is at 132.50% with IV rank near 51.14%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.