RDVT Long Call Strategy
RDVT (Red Violet, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Red Violet, Inc., a software and services company, specializes in proprietary technologies and applying analytical capabilities to deliver identity intelligence in the United States. It offers idiCORE, an investigative solution used to address various organizational challenges, which include due diligence, risk mitigation, identity authentication, and regulatory compliance; and FOREWARN, an app-based solution that provides instant knowledge before face-to-face engagement with a consumer, as well as helps professionals to identify and mitigate risk. The company serves financial services, insurance, healthcare, retail, and telecommunication companies; law enforcement and government agencies; and collections, corporate security, and investigative firms, as well as solutions used for purposes, such as risk mitigation, due diligence, fraud detection and prevention, regulatory compliance, and customer acquisition. It markets its products and services through value-added distributors, resellers, and strategic partners; and trade shows and seminars, advertising, public relations, distribution of sales literature, and product specifications and ongoing communication with prospective customers, distributors, resellers, strategic partners, and installed base of current customers, as well as through direct sales. Red Violet, Inc. was incorporated in 2017 and is headquartered in Boca Raton, Florida.
RDVT (Red Violet, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $644.6M, a trailing P/E of 45.99, a beta of 1.71 versus the broader market, a 52-week range of 33.4-64.135, average daily share volume of 124K, a public-listing history dating back to 2018, approximately 215 full-time employees. These structural characteristics shape how RDVT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.71 indicates RDVT 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 45.99 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. RDVT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long call on RDVT?
A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration.
Current RDVT snapshot
As of May 15, 2026, spot at $46.66, ATM IV 57.30%, IV rank 6.83%, expected move 16.43%. The long call on RDVT 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 34-day expiry.
Why this long call structure on RDVT specifically: RDVT IV at 57.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a RDVT long call, with a market-implied 1-standard-deviation move of approximately 16.43% (roughly $7.67 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RDVT expiries trade a higher absolute premium for lower per-day decay. Position sizing on RDVT should anchor to the underlying notional of $46.66 per share and to the trader's directional view on RDVT stock.
RDVT long call setup
The RDVT long call below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With RDVT near $46.66, the first option leg uses a $46.66 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RDVT chain at a 34-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 RDVT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $46.66 | N/A |
RDVT long call 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
Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium.
RDVT long call payoff curve
Modeled P&L at expiration across a range of underlying prices for the long call on RDVT. 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 long call on RDVT
Long calls on RDVT express a bullish thesis with defined risk; traders use them ahead of RDVT catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
RDVT thesis for this long call
The market-implied 1-standard-deviation range for RDVT extends from approximately $38.99 on the downside to $54.33 on the upside. A RDVT long call expresses a directional view that the underlying closes above the strike plus premium at expiration, ideally with implied volatility holding or expanding to preserve extrinsic value through the hold period. Current RDVT IV rank near 6.83% 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 RDVT at 57.30%. As a Technology name, RDVT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RDVT-specific events.
RDVT long call positions are structurally bullish; 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. RDVT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RDVT alongside the broader basket even when RDVT-specific fundamentals are unchanged. Long-premium structures like a long call on RDVT are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current RDVT chain quotes before placing a trade.
Frequently asked questions
- What is a long call on RDVT?
- A long call on RDVT is the long call strategy applied to RDVT (stock). The strategy is structurally bullish: A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration. With RDVT stock trading near $46.66, the strikes shown on this page are snapped to the nearest listed RDVT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RDVT long call max profit and max loss calculated?
- Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium. For the RDVT long call priced from the end-of-day chain at a 30-day expiry (ATM IV 57.30%), 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 RDVT long call?
- The breakeven for the RDVT long call 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 RDVT market-implied 1-standard-deviation expected move is approximately 16.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a long call on RDVT?
- Long calls on RDVT express a bullish thesis with defined risk; traders use them ahead of RDVT catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
- How does current RDVT implied volatility affect this long call?
- RDVT ATM IV is at 57.30% with IV rank near 6.83%, 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.