RCLY Collar Strategy
RCLY (Reckoner BBB-B CLO Annual ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
RCLY is a feeder fund that provides leveraged exposure to CLO tranches rated as BBB+ to B- by investing exclusively in its master fund, the Reckoner BBB-B CLO ETF (RCLO). The underlying ETF, RCLO, primarily focuses on floating-rate CLOs within its target rating range but may invest up to 70% in CLOs rated BB+ or lower, and up to 10% in CLOs rated above BBB+. Investments could be of any maturity, purchased from both primary and secondary markets. It applies a bottom-up approach to select investments by reviewing documentation on an issuers management, individual CLO structure and collateral, ability to meet obligations, cash flow, and trading frequency. RCLY makes a single annual dividend payment, offering tax efficiency, compounding potential, and the opportunity to maximize long-term total return.
RCLY (Reckoner BBB-B CLO Annual ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $12.7M, a beta of 0.09 versus the broader market, a 52-week range of 96.37-101.5, average daily share volume of 0K, a public-listing history dating back to 2026, approximately 320 full-time employees. These structural characteristics shape how RCLY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.09 indicates RCLY 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 RCLY?
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.
RCLY snapshot
As of August 14, 2026, spot at $102.62, ATM IV 17.90%, expected move 5.13%. The collar on RCLY 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 7-day expiry.
Why this collar structure on RCLY specifically: IV rank is unavailable in the current snapshot, so regime-based timing for RCLY is inferred from ATM IV at 17.90% alone, with a market-implied 1-standard-deviation move of approximately 5.13% (roughly $5.27 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RCLY expiries trade a higher absolute premium for lower per-day decay. Position sizing on RCLY should anchor to the underlying notional of $102.62 per share and to the trader's directional view on RCLY stock.
RCLY collar setup
The RCLY 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 RCLY at $102.62 on that close, the first option leg uses a $108.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RCLY chain at a 7-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 RCLY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $102.62 | long |
| Sell 1 | Call | $108.00 | $0.59 |
| Buy 1 | Put | $97.00 | $0.45 |
RCLY collar risk and reward
- Net Premium / Debit
- -$10,248.00
- Max Profit (per contract)
- $552.00
- Max Loss (per contract)
- -$548.00
- Breakeven(s)
- $102.48
- Risk / Reward Ratio
- 1.007
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.
RCLY collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on RCLY. 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% | -$548.00 |
| $22.70 | -77.9% | -$548.00 |
| $45.39 | -55.8% | -$548.00 |
| $68.08 | -33.7% | -$548.00 |
| $90.76 | -11.6% | -$548.00 |
| $113.45 | +10.6% | +$552.00 |
| $136.14 | +32.7% | +$552.00 |
| $158.83 | +54.8% | +$552.00 |
| $181.52 | +76.9% | +$552.00 |
| $204.21 | +99.0% | +$552.00 |
When traders use collar on RCLY
Collars on RCLY hedge an existing long RCLY 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.
RCLY thesis for this collar
The market-implied 1-standard-deviation range for RCLY extends from approximately $97.35 on the downside to $107.89 on the upside. A RCLY collar hedges an existing long RCLY 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, RCLY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RCLY-specific events.
RCLY 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. RCLY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RCLY alongside the broader basket even when RCLY-specific fundamentals are unchanged. Always rebuild the position from current RCLY chain quotes before placing a trade.
Frequently asked questions
- What is a collar on RCLY?
- A collar on RCLY is the collar strategy applied to RCLY (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 RCLY stock at $102.62 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed RCLY chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are RCLY 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 RCLY collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 17.90%), the computed maximum profit is $552.00 per contract and the computed maximum loss is -$548.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RCLY collar?
- The breakeven for the RCLY collar priced on this page is roughly $102.48 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 RCLY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on RCLY?
- Collars on RCLY hedge an existing long RCLY 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 RCLY implied volatility affect this collar?
- Current RCLY ATM IV is 17.90%; IV rank context is unavailable in the current snapshot.