REFI Collar Strategy
REFI (Chicago Atlantic Real Estate Finance, Inc.), in the Real Estate sector, (REIT - Mortgage industry), listed on NASDAQ.
Chicago Atlantic Real Estate Finance, Inc. operates as a commercial real estate finance company in the United States. It originates, structures, and invests in first mortgage loans and alternative structured financings secured by commercial real estate properties. The company offers senior loans to state-licensed operators and property owners in the cannabis industry. It has elected to be taxed as a real estate investment trust (REIT) and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was incorporated in 2021 and is based in Chicago, Illinois.
REFI (Chicago Atlantic Real Estate Finance, Inc.) trades in the Real Estate sector, specifically REIT - Mortgage, with a market capitalization of approximately $240.5M, a trailing P/E of 7.76, a beta of 0.32 versus the broader market, a 52-week range of 10.74-15.1, average daily share volume of 166K, a public-listing history dating back to 2021. These structural characteristics shape how REFI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.32 indicates REFI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 7.76 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. REFI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on REFI?
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 REFI snapshot
As of May 15, 2026, spot at $11.21, ATM IV 210.40%, IV rank 46.24%, expected move 60.32%. The collar on REFI 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 collar structure on REFI specifically: IV regime affects collar pricing on both sides; mid-range REFI IV at 210.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 60.32% (roughly $6.76 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 REFI expiries trade a higher absolute premium for lower per-day decay. Position sizing on REFI should anchor to the underlying notional of $11.21 per share and to the trader's directional view on REFI stock.
REFI collar setup
The REFI 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 REFI near $11.21, the first option leg uses a $11.77 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed REFI 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 REFI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $11.21 | long |
| Sell 1 | Call | $11.77 | N/A |
| Buy 1 | Put | $10.65 | N/A |
REFI collar 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 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.
REFI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on REFI. 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 collar on REFI
Collars on REFI hedge an existing long REFI 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.
REFI thesis for this collar
The market-implied 1-standard-deviation range for REFI extends from approximately $4.45 on the downside to $17.97 on the upside. A REFI collar hedges an existing long REFI 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 REFI IV rank near 46.24% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on REFI should anchor more to the directional view and the expected-move geometry. As a Real Estate name, REFI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to REFI-specific events.
REFI 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. REFI positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move REFI alongside the broader basket even when REFI-specific fundamentals are unchanged. Always rebuild the position from current REFI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on REFI?
- A collar on REFI is the collar strategy applied to REFI (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 REFI stock trading near $11.21, the strikes shown on this page are snapped to the nearest listed REFI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are REFI 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 REFI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 210.40%), 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 REFI collar?
- The breakeven for the REFI collar 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 REFI market-implied 1-standard-deviation expected move is approximately 60.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on REFI?
- Collars on REFI hedge an existing long REFI 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 REFI implied volatility affect this collar?
- REFI ATM IV is at 210.40% with IV rank near 46.24%, 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.