REYN Collar Strategy
REYN (Reynolds Consumer Products Inc.), in the Consumer Cyclical sector, (Packaging & Containers industry), listed on NASDAQ.
Reynolds Consumer Products Inc. produces and sells products in cooking, waste and storage, and tableware product categories in the United States and internationally. It operates through four segments: Reynolds Cooking & Baking, Hefty Waste & Storage, Hefty Tableware, and Presto Products. The Reynolds Cooking & Baking segment produces foil, disposable aluminum pans, parchment paper, freezer paper, wax paper, butcher paper, plastic wrap, baking cups, oven bags, and slow cooker liners under the Reynolds Wrap, Reynolds KITCHENS, and E-Z Foil brands in the United States, as well as under the ALCAN brand in Canada and under the Diamond brand internationally. The Hefty Waste & Storage segment offers trash bags under the Hefty Ultra Strong and Hefty Strong brands; and food storage bags under the Hefty and Baggies brands. This segment also provides a suite of products, including blue and clear recycling bags, compostable bags, bags made from recycled materials, and the Hefty EnergyBag Program. The Hefty Tableware segment offers disposable and compostable plates, bowls, platters, cups, and cutlery under the Hefty brand.
REYN (Reynolds Consumer Products Inc.) trades in the Consumer Cyclical sector, specifically Packaging & Containers, with a market capitalization of approximately $4.54B, a trailing P/E of 13.80, a beta of 0.56 versus the broader market, a 52-week range of 20.44-26.25, average daily share volume of 1.1M, a public-listing history dating back to 2020, approximately 6K full-time employees. These structural characteristics shape how REYN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.56 indicates REYN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. REYN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on REYN?
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 REYN snapshot
As of May 15, 2026, spot at $21.21, ATM IV 32.10%, IV rank 5.47%, expected move 9.20%. The collar on REYN 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 REYN specifically: IV regime affects collar pricing on both sides; compressed REYN IV at 32.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.20% (roughly $1.95 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 REYN expiries trade a higher absolute premium for lower per-day decay. Position sizing on REYN should anchor to the underlying notional of $21.21 per share and to the trader's directional view on REYN stock.
REYN collar setup
The REYN 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 REYN near $21.21, the first option leg uses a $22.27 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed REYN 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 REYN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $21.21 | long |
| Sell 1 | Call | $22.27 | N/A |
| Buy 1 | Put | $20.15 | N/A |
REYN 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.
REYN collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on REYN. 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 REYN
Collars on REYN hedge an existing long REYN 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.
REYN thesis for this collar
The market-implied 1-standard-deviation range for REYN extends from approximately $19.26 on the downside to $23.16 on the upside. A REYN collar hedges an existing long REYN 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 REYN IV rank near 5.47% 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 REYN at 32.10%. As a Consumer Cyclical name, REYN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to REYN-specific events.
REYN 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. REYN positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move REYN alongside the broader basket even when REYN-specific fundamentals are unchanged. Always rebuild the position from current REYN chain quotes before placing a trade.
Frequently asked questions
- What is a collar on REYN?
- A collar on REYN is the collar strategy applied to REYN (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 REYN stock trading near $21.21, the strikes shown on this page are snapped to the nearest listed REYN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are REYN 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 REYN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 32.10%), 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 REYN collar?
- The breakeven for the REYN 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 REYN market-implied 1-standard-deviation expected move is approximately 9.20%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on REYN?
- Collars on REYN hedge an existing long REYN 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 REYN implied volatility affect this collar?
- REYN ATM IV is at 32.10% with IV rank near 5.47%, 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.