RES Collar Strategy
RES (RPC, Inc.), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.
RPC, Inc. and its subsidiaries serve as a diversified provider of essential oilfield services and equipment, supporting oil and gas companies throughout the exploration, production, and development lifecycle of their energy properties. The company's operations are distinctly divided into two core segments: Technical Services and Support Services. The Technical Services segment offers a comprehensive suite of specialized solutions critical for the completion, ongoing production, and maintenance of oil and gas wells. These offerings include pressure pumping, hydraulic fracturing, acidizing, cementing, downhole tooling, coiled tubing, snubbing, nitrogen applications, well control, wireline interventions, pump down services, and fishing operations. Conversely, the Support Services segment provides a wide array of rental tools crucial for both onshore and offshore drilling, completion, and workover activities. This segment also delivers oilfield pipe inspection, extensive pipe management and storage solutions, as well as expert well control training and consulting services.
RES (RPC, Inc.) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $1.31B, a trailing P/E of 62.36, a beta of 0.62 versus the broader market, a 52-week range of 4.18-8.16, average daily share volume of 2.0M, a public-listing history dating back to 1984, approximately 3K full-time employees. These structural characteristics shape how RES stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.62 indicates RES 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 62.36 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. RES pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on RES?
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 RES snapshot
As of June 30, 2026, spot at $5.79, ATM IV 183.30%, IV rank 94.67%, expected move 52.55%. The collar on RES 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 17-day expiry.
Why this collar structure on RES specifically: IV regime affects collar pricing on both sides; elevated RES IV at 183.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 52.55% (roughly $3.04 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RES expiries trade a higher absolute premium for lower per-day decay. Position sizing on RES should anchor to the underlying notional of $5.79 per share and to the trader's directional view on RES stock.
RES collar setup
The RES 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 RES near $5.79, the first option leg uses a $6.08 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RES chain at a 17-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 RES shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $5.79 | long |
| Sell 1 | Call | $6.08 | N/A |
| Buy 1 | Put | $5.50 | N/A |
RES 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.
RES collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on RES. 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 RES
Collars on RES hedge an existing long RES 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.
RES thesis for this collar
The market-implied 1-standard-deviation range for RES extends from approximately $2.75 on the downside to $8.83 on the upside. A RES collar hedges an existing long RES 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 RES IV rank near 94.67% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on RES at 183.30%. As a Energy name, RES options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RES-specific events.
RES 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. RES positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RES alongside the broader basket even when RES-specific fundamentals are unchanged. Always rebuild the position from current RES chain quotes before placing a trade.
Frequently asked questions
- What is a collar on RES?
- A collar on RES is the collar strategy applied to RES (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 RES stock trading near $5.79, the strikes shown on this page are snapped to the nearest listed RES chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RES 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 RES collar priced from the end-of-day chain at a 30-day expiry (ATM IV 183.30%), 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 RES collar?
- The breakeven for the RES 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 RES market-implied 1-standard-deviation expected move is approximately 52.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on RES?
- Collars on RES hedge an existing long RES 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 RES implied volatility affect this collar?
- RES ATM IV is at 183.30% with IV rank near 94.67%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.