RELY Collar Strategy
RELY (Remitly Global, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.
Remitly Global, Inc. specializes in providing digital financial services tailored for immigrants and their families. Primarily, it enables international money transfers, operating in nearly 150 countries. Founded in 2011, the company maintains its headquarters in Seattle, Washington.
RELY (Remitly Global, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $5.10B, a trailing P/E of 16.75, a beta of 0.34 versus the broader market, a 52-week range of 12.08-27.15, average daily share volume of 4.2M, a public-listing history dating back to 2021, approximately 3K full-time employees. These structural characteristics shape how RELY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.34 indicates RELY 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 RELY?
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.
RELY snapshot
As of August 14, 2026, spot at $26.19, ATM IV 37.70%, IV rank 7.52%, expected move 10.81%. The collar on RELY 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 RELY specifically: IV regime affects collar pricing on both sides; compressed RELY IV at 37.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.81% (roughly $2.83 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 RELY expiries trade a higher absolute premium for lower per-day decay. Position sizing on RELY should anchor to the underlying notional of $26.19 per share and to the trader's directional view on RELY stock.
RELY collar setup
The RELY 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 RELY at $26.19 on that close, the first option leg uses a $27.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RELY 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 RELY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $26.19 | long |
| Sell 1 | Call | $27.00 | $0.25 |
| Buy 1 | Put | $25.00 | $0.25 |
RELY collar risk and reward
- Net Premium / Debit
- -$2,619.00
- Max Profit (per contract)
- $81.00
- Max Loss (per contract)
- -$119.00
- Breakeven(s)
- $26.19
- Risk / Reward Ratio
- 0.681
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.
RELY collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on RELY. 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% | -$119.00 |
| $5.80 | -77.9% | -$119.00 |
| $11.59 | -55.7% | -$119.00 |
| $17.38 | -33.6% | -$119.00 |
| $23.17 | -11.5% | -$119.00 |
| $28.96 | +10.6% | +$81.00 |
| $34.75 | +32.7% | +$81.00 |
| $40.54 | +54.8% | +$81.00 |
| $46.33 | +76.9% | +$81.00 |
| $52.12 | +99.0% | +$81.00 |
When traders use collar on RELY
Collars on RELY hedge an existing long RELY 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.
RELY thesis for this collar
The market-implied 1-standard-deviation range for RELY extends from approximately $23.36 on the downside to $29.02 on the upside. A RELY collar hedges an existing long RELY 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 RELY IV rank near 7.52% 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 RELY at 37.70%. As a Technology name, RELY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RELY-specific events.
RELY 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. RELY positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RELY alongside the broader basket even when RELY-specific fundamentals are unchanged. Always rebuild the position from current RELY chain quotes before placing a trade.
Frequently asked questions
- What is a collar on RELY?
- A collar on RELY is the collar strategy applied to RELY (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 RELY stock at $26.19 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed RELY chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are RELY 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 RELY collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 37.70%), the computed maximum profit is $81.00 per contract and the computed maximum loss is -$119.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RELY collar?
- The breakeven for the RELY collar priced on this page is roughly $26.19 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 RELY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.81%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on RELY?
- Collars on RELY hedge an existing long RELY 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 RELY implied volatility affect this collar?
- RELY ATM IV is at 37.70% with IV rank near 7.52%, 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.