RFIL Collar Strategy
RFIL (RF Industries, Ltd.), in the Industrials sector, (Electrical Equipment & Parts industry), listed on NASDAQ.
RF Industries, Ltd., together with its subsidiaries, designs, manufactures, and markets interconnect products and systems in the United States, Canada, Mexico, and internationally. The company operates through two segments, RF Connector and Cable Assembly and Custom Cabling Manufacturing and Assembly. The company's RF Connector and Cable Assembly segment designs, manufactures, and distributes various coaxial connectors and cable assemblies that are integrated with coaxial connectors. The Custom Cabling Manufacturing and Assembly segment designs, manufactures, markets, and distributes custom copper and fiber cable assemblies, complex hybrid fiber optic and power solution cables, energy-efficient cooling systems for wireless base stations and remote equipment shelters, and custom designed pole-ready 5G small cell integrated enclosures. It also manufactures and sells custom and standard cable assemblies, hybrid fiber optic power solution cables, adapters, and electromechanical wiring harnesses for communication, computer, LAN, automotive, and medical equipment. In addition, the company designs and manufactures cable assemblies and wiring harnesses for blue chip industrial, oilfield, instrumentation, and military customers.
RFIL (RF Industries, Ltd.) trades in the Industrials sector, specifically Electrical Equipment & Parts, with a market capitalization of approximately $195.4M, a trailing P/E of 718.32, a beta of 1.26 versus the broader market, a 52-week range of 3.89-18.55, average daily share volume of 241K, a public-listing history dating back to 1994, approximately 302 full-time employees. These structural characteristics shape how RFIL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.26 places RFIL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 718.32 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.
What is a collar on RFIL?
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 RFIL snapshot
As of May 15, 2026, spot at $17.91, ATM IV 94.20%, IV rank 30.51%, expected move 27.01%. The collar on RFIL 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 RFIL specifically: IV regime affects collar pricing on both sides; mid-range RFIL IV at 94.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 27.01% (roughly $4.84 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 RFIL expiries trade a higher absolute premium for lower per-day decay. Position sizing on RFIL should anchor to the underlying notional of $17.91 per share and to the trader's directional view on RFIL stock.
RFIL collar setup
The RFIL 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 RFIL near $17.91, the first option leg uses a $18.81 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RFIL 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 RFIL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $17.91 | long |
| Sell 1 | Call | $18.81 | N/A |
| Buy 1 | Put | $17.01 | N/A |
RFIL 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.
RFIL collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on RFIL. 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 RFIL
Collars on RFIL hedge an existing long RFIL 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.
RFIL thesis for this collar
The market-implied 1-standard-deviation range for RFIL extends from approximately $13.07 on the downside to $22.75 on the upside. A RFIL collar hedges an existing long RFIL 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 RFIL IV rank near 30.51% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on RFIL should anchor more to the directional view and the expected-move geometry. As a Industrials name, RFIL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RFIL-specific events.
RFIL 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. RFIL positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RFIL alongside the broader basket even when RFIL-specific fundamentals are unchanged. Always rebuild the position from current RFIL chain quotes before placing a trade.
Frequently asked questions
- What is a collar on RFIL?
- A collar on RFIL is the collar strategy applied to RFIL (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 RFIL stock trading near $17.91, the strikes shown on this page are snapped to the nearest listed RFIL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RFIL 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 RFIL collar priced from the end-of-day chain at a 30-day expiry (ATM IV 94.20%), 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 RFIL collar?
- The breakeven for the RFIL 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 RFIL market-implied 1-standard-deviation expected move is approximately 27.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on RFIL?
- Collars on RFIL hedge an existing long RFIL 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 RFIL implied volatility affect this collar?
- RFIL ATM IV is at 94.20% with IV rank near 30.51%, 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.