RCI Straddle Strategy
RCI (Rogers Communications Inc.), in the Communication Services sector, (Telecommunications Services industry), listed on NYSE.
Rogers Communications Inc., a prominent Canadian telecommunications and media conglomerate, structures its diverse operations across three core divisions: Wireless, Cable, and Media. In its Wireless segment, Rogers caters to approximately 11.3 million subscribers through its Rogers, Fido, and chatr brands. This division offers an extensive range of mobile services, including internet access, traditional and enhanced voice communication, wireless home phone, and global voice and data roaming. Customers also benefit from device and accessory financing, device protection plans, email, and convenient device delivery services. Furthermore, Rogers provides specialized wireless solutions for businesses, encompassing machine-to-machine (M2M) connectivity, Internet of Things (IoT) platforms, and landline bridging. The Cable division delivers high-speed internet and comprehensive WiFi services.
RCI (Rogers Communications Inc.) trades in the Communication Services sector, specifically Telecommunications Services, with a market capitalization of approximately $18.82B, a trailing P/E of 3.77, a beta of 0.79 versus the broader market, a 52-week range of 29.11-41.14, average daily share volume of 1.3M, a public-listing history dating back to 1996, approximately 24K full-time employees. These structural characteristics shape how RCI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.79 places RCI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 3.77 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. RCI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on RCI?
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 RCI snapshot
As of June 30, 2026, spot at $32.58, ATM IV 125.80%, IV rank 32.39%, expected move 36.07%. The straddle on RCI 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 straddle structure on RCI specifically: RCI IV at 125.80% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 36.07% (roughly $11.75 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 RCI expiries trade a higher absolute premium for lower per-day decay. Position sizing on RCI should anchor to the underlying notional of $32.58 per share and to the trader's directional view on RCI stock.
RCI straddle setup
The RCI 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 RCI near $32.58, the first option leg uses a $32.58 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RCI 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 RCI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $32.58 | N/A |
| Buy 1 | Put | $32.58 | N/A |
RCI 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.
RCI straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on RCI. 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 RCI
Straddles on RCI are pure-volatility plays that profit from large moves in either direction; traders typically buy RCI straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
RCI thesis for this straddle
The market-implied 1-standard-deviation range for RCI extends from approximately $20.83 on the downside to $44.33 on the upside. A RCI 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 RCI IV rank near 32.39% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on RCI should anchor more to the directional view and the expected-move geometry. As a Communication Services name, RCI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RCI-specific events.
RCI 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. RCI positions also carry Communication Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RCI alongside the broader basket even when RCI-specific fundamentals are unchanged. Always rebuild the position from current RCI chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on RCI?
- A straddle on RCI is the straddle strategy applied to RCI (stock). 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 RCI stock trading near $32.58, the strikes shown on this page are snapped to the nearest listed RCI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RCI 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 RCI straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 125.80%), 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 RCI straddle?
- The breakeven for the RCI 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 RCI market-implied 1-standard-deviation expected move is approximately 36.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on RCI?
- Straddles on RCI are pure-volatility plays that profit from large moves in either direction; traders typically buy RCI 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 RCI implied volatility affect this straddle?
- RCI ATM IV is at 125.80% with IV rank near 32.39%, 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.