REZI Collar Strategy
REZI (Resideo Technologies, Inc.), in the Industrials sector, (Security & Protection Services industry), listed on NYSE.
Resideo Technologies, Inc. develops, manufactures, and sells comfort, residential thermal, and security solutions to the commercial and residential end markets in the United States, Europe, and internationally. The company operates in two segments, Products & Solutions, and ADI Global Distribution. It offers temperature and humidity control, thermal water, and air solutions; and security panels, sensors, peripherals, wires and cables, communication devices, video cameras, awareness solutions, cloud infrastructure, installation and maintenance tools, and related software products under the Honeywell Home brand. In addition, the company distributes security products comprising video, intrusion, and access control products; and smart home, fire, power, audio, ProAV, networking, communication, wire and cable, enterprise connectivity, and structured wiring products to contractors that service non-residential and residential end-users. It sells its products through a network of distributors, original equipment manufacturers, and service providers, as well as retail and online channels. Resideo Technologies, Inc. was incorporated in 2018 and is headquartered in Scottsdale, Arizona.
REZI (Resideo Technologies, Inc.) trades in the Industrials sector, specifically Security & Protection Services, with a market capitalization of approximately $4.56B, a beta of 1.75 versus the broader market, a 52-week range of 19.65-45.29, average daily share volume of 1.2M, a public-listing history dating back to 2018, approximately 15K full-time employees. These structural characteristics shape how REZI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.75 indicates REZI 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 REZI?
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 REZI snapshot
As of May 15, 2026, spot at $28.53, ATM IV 43.40%, IV rank 17.14%, expected move 12.44%. The collar on REZI 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 REZI specifically: IV regime affects collar pricing on both sides; compressed REZI IV at 43.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.44% (roughly $3.55 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 REZI expiries trade a higher absolute premium for lower per-day decay. Position sizing on REZI should anchor to the underlying notional of $28.53 per share and to the trader's directional view on REZI stock.
REZI collar setup
The REZI 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 REZI near $28.53, the first option leg uses a $29.96 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed REZI 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 REZI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $28.53 | long |
| Sell 1 | Call | $29.96 | N/A |
| Buy 1 | Put | $27.10 | N/A |
REZI 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.
REZI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on REZI. 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 REZI
Collars on REZI hedge an existing long REZI 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.
REZI thesis for this collar
The market-implied 1-standard-deviation range for REZI extends from approximately $24.98 on the downside to $32.08 on the upside. A REZI collar hedges an existing long REZI 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 REZI IV rank near 17.14% 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 REZI at 43.40%. As a Industrials name, REZI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to REZI-specific events.
REZI 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. REZI positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move REZI alongside the broader basket even when REZI-specific fundamentals are unchanged. Always rebuild the position from current REZI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on REZI?
- A collar on REZI is the collar strategy applied to REZI (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 REZI stock trading near $28.53, the strikes shown on this page are snapped to the nearest listed REZI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are REZI 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 REZI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 43.40%), 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 REZI collar?
- The breakeven for the REZI 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 REZI market-implied 1-standard-deviation expected move is approximately 12.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on REZI?
- Collars on REZI hedge an existing long REZI 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 REZI implied volatility affect this collar?
- REZI ATM IV is at 43.40% with IV rank near 17.14%, 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.