RDW Collar Strategy
RDW (Redwire Corp), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.
Redwire Corporation provides critical space solutions and space infrastructure for government and commercial customers in the United States, Europe, and internationally. It operates in two segments Space and Defense Tech. The company offers sensors and avionics systems, including star trackers and sun sensors, which are critical for accurate navigation and control of spacecraft; camera systems; infrared, space situational awareness, and position timing and navigation payloads; It also provides software suite that enables digital engineering and generation of high-fidelity, interactive modeling and simulations of individual components, entire spacecraft, and full constellations in a cloud-based environment. In addition, the company offers microgravity payloads, radio frequency systems, antennas, spacecraft platforms and missions, and in-space manufacturing and biotech facilities, as well as field-proven uncrewed airborne system (UAS) technology. Further, it provides combat-proven autonomous systems, optical sensors, advanced optics, resilient energy solutions, and radio frequency payloads, as well as provides intelligence, surveillance, and reconnaissance capabilities for customers including the U.S. Department of War, U.S.
RDW (Redwire Corp) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $3.22B, a beta of 3.06 versus the broader market, a 52-week range of 4.87-26.64, average daily share volume of 33.1M, a public-listing history dating back to 2021, approximately 1K full-time employees. These structural characteristics shape how RDW stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.06 indicates RDW has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on RDW?
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.
RDW snapshot
As of August 14, 2026, spot at $13.70, ATM IV 89.70%, IV rank 23.54%, expected move 25.72%. The collar on RDW 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 28-day expiry.
Why this collar structure on RDW specifically: IV regime affects collar pricing on both sides; compressed RDW IV at 89.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 25.72% (roughly $3.52 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RDW expiries trade a higher absolute premium for lower per-day decay. Position sizing on RDW should anchor to the underlying notional of $13.70 per share and to the trader's directional view on RDW stock.
RDW collar setup
The RDW 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 RDW at $13.70 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 RDW chain at a 28-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 RDW shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $13.70 | long |
| Sell 1 | Call | $14.00 | $1.23 |
| Buy 1 | Put | $13.00 | $0.98 |
RDW collar risk and reward
- Net Premium / Debit
- -$1,345.00
- Max Profit (per contract)
- $55.00
- Max Loss (per contract)
- -$45.00
- Breakeven(s)
- $13.45
- Risk / Reward Ratio
- 1.222
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.
RDW collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on RDW. 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 | -99.9% | -$45.00 |
| $3.04 | -77.8% | -$45.00 |
| $6.07 | -55.7% | -$45.00 |
| $9.09 | -33.6% | -$45.00 |
| $12.12 | -11.5% | -$45.00 |
| $15.15 | +10.6% | +$55.00 |
| $18.18 | +32.7% | +$55.00 |
| $21.21 | +54.8% | +$55.00 |
| $24.23 | +76.9% | +$55.00 |
| $27.26 | +99.0% | +$55.00 |
When traders use collar on RDW
Collars on RDW hedge an existing long RDW 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.
RDW thesis for this collar
The market-implied 1-standard-deviation range for RDW extends from approximately $10.18 on the downside to $17.22 on the upside. A RDW collar hedges an existing long RDW 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 RDW IV rank near 23.54% 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 RDW at 89.70%. As a Industrials name, RDW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RDW-specific events.
RDW 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. RDW positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RDW alongside the broader basket even when RDW-specific fundamentals are unchanged. Always rebuild the position from current RDW chain quotes before placing a trade.
Frequently asked questions
- What is a collar on RDW?
- A collar on RDW is the collar strategy applied to RDW (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 RDW stock at $13.70 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed RDW chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are RDW 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 RDW collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 89.70%), the computed maximum profit is $55.00 per contract and the computed maximum loss is -$45.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RDW collar?
- The breakeven for the RDW collar priced on this page is roughly $13.45 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 RDW market-implied 1-standard-deviation expected move in the same options snapshot is approximately 25.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on RDW?
- Collars on RDW hedge an existing long RDW 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 RDW implied volatility affect this collar?
- RDW ATM IV is at 89.70% with IV rank near 23.54%, 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.