RBC Collar Strategy
RBC (RBC Bearings Incorporated), in the Industrials sector, (Manufacturing - Tools & Accessories industry), listed on NYSE.
RBC Bearings Incorporated (RBC) is a global enterprise specializing in the design, production, and distribution of precisely engineered bearings and a wide array of related mechanical components. The company strategically operates through two core segments: Aerospace/Defense and Industrial, catering to both domestic and international clients. Its diverse product portfolio includes: Plain bearings: Available in self-lubricating or metal-on-metal designs, featuring rod end, spherical plain, and journal bearings. Roller bearings: These anti-friction devices, such as tapered roller, needle roller, needle bearing track rollers, and cam followers, are vital for various industrial uses and military aircraft platforms. Ball bearings: This category encompasses high-precision aerospace, airframe control, thin section, and industrial ball bearings, all engineered with high-precision ball elements to minimize friction in demanding, high-speed applications. Beyond its primary bearing offerings, RBC also provides: Mounted bearing products: Including complete mounted ball, roller, and plain bearing units.
RBC (RBC Bearings Incorporated) trades in the Industrials sector, specifically Manufacturing - Tools & Accessories, with a market capitalization of approximately $19.94B, a trailing P/E of 69.12, a beta of 1.43 versus the broader market, a 52-week range of 364.5-667.69, average daily share volume of 238K, a public-listing history dating back to 2005, approximately 5K full-time employees. These structural characteristics shape how RBC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.43 indicates RBC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 69.12 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a collar on RBC?
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 RBC snapshot
As of June 29, 2026, spot at $633.75, ATM IV 30.20%, IV rank 23.94%, expected move 8.66%. The collar on RBC 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 18-day expiry.
Why this collar structure on RBC specifically: IV regime affects collar pricing on both sides; compressed RBC IV at 30.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.66% (roughly $54.87 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RBC expiries trade a higher absolute premium for lower per-day decay. Position sizing on RBC should anchor to the underlying notional of $633.75 per share and to the trader's directional view on RBC stock.
RBC collar setup
The RBC 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 RBC near $633.75, the first option leg uses a $670.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RBC chain at a 18-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 RBC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $633.75 | long |
| Sell 1 | Call | $670.00 | $4.45 |
| Buy 1 | Put | $600.00 | $5.55 |
RBC collar risk and reward
- Net Premium / Debit
- -$63,485.00
- Max Profit (per contract)
- $3,515.00
- Max Loss (per contract)
- -$3,485.00
- Breakeven(s)
- $634.85
- Risk / Reward Ratio
- 1.009
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.
RBC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on RBC. 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% | -$3,485.00 |
| $140.13 | -77.9% | -$3,485.00 |
| $280.26 | -55.8% | -$3,485.00 |
| $420.38 | -33.7% | -$3,485.00 |
| $560.51 | -11.6% | -$3,485.00 |
| $700.63 | +10.6% | +$3,515.00 |
| $840.76 | +32.7% | +$3,515.00 |
| $980.88 | +54.8% | +$3,515.00 |
| $1,121.01 | +76.9% | +$3,515.00 |
| $1,261.13 | +99.0% | +$3,515.00 |
When traders use collar on RBC
Collars on RBC hedge an existing long RBC 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.
RBC thesis for this collar
The market-implied 1-standard-deviation range for RBC extends from approximately $578.88 on the downside to $688.62 on the upside. A RBC collar hedges an existing long RBC 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 RBC IV rank near 23.94% 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 RBC at 30.20%. As a Industrials name, RBC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RBC-specific events.
RBC 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. RBC positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RBC alongside the broader basket even when RBC-specific fundamentals are unchanged. Always rebuild the position from current RBC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on RBC?
- A collar on RBC is the collar strategy applied to RBC (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 RBC stock trading near $633.75, the strikes shown on this page are snapped to the nearest listed RBC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RBC 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 RBC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 30.20%), the computed maximum profit is $3,515.00 per contract and the computed maximum loss is -$3,485.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RBC collar?
- The breakeven for the RBC collar priced on this page is roughly $634.85 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 RBC market-implied 1-standard-deviation expected move is approximately 8.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on RBC?
- Collars on RBC hedge an existing long RBC 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 RBC implied volatility affect this collar?
- RBC ATM IV is at 30.20% with IV rank near 23.94%, 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.