How are RILY 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 RILY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 82.64%), the computed maximum profit is $70.00 per contract and the computed maximum loss is -$30.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RILY collar?

The breakeven for the RILY collar priced on this page is roughly $8.80 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 RILY market-implied 1-standard-deviation expected move is approximately 23.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RILY implied volatility affect this collar?

RILY ATM IV is at 82.64% with IV rank near 3.22%, 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.

RILY Collar Strategy

RILY (BRC Group Holdings, Inc.), in the Financial Services sector, (Financial - Conglomerates industry), listed on NASDAQ.

B. Riley Financial, Inc., through its subsidiaries, provides investment banking and financial services to corporate, institutional, and high net worth clients in North America, Australia, and Europe. The company operates in six segments: Capital Markets, Wealth Management, Auction and Liquidation, Financial Consulting, Principal InvestmentsCommunications, and Brands. The Capital Markets segments offers investment banking, corporate finance, financial advisory, research, securities lending and sales, and trading services; merger and acquisitions, restructuring advisory, initial and secondary public offerings, and institutional private placements services; asset management services; and trades in equity securities. The Wealth Management segment provides wealth management and tax services. The Auction and Liquidation Segment offers retail store liquidation, and wholesale and industrial assets disposition services.

RILY (BRC Group Holdings, Inc.) trades in the Financial Services sector, specifically Financial - Conglomerates, with a market capitalization of approximately $311.5M, a trailing P/E of 0.55, a beta of 1.16 versus the broader market, a 52-week range of 2.79-10.97, average daily share volume of 815K, a public-listing history dating back to 2007, approximately 2K full-time employees. These structural characteristics shape how RILY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.16 places RILY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 0.55 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. RILY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on RILY?

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 RILY snapshot

As of May 15, 2026, spot at $9.09, ATM IV 82.64%, IV rank 3.22%, expected move 23.69%. The collar on RILY 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 28-day expiry.

Why this collar structure on RILY specifically: IV regime affects collar pricing on both sides; compressed RILY IV at 82.64% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 23.69% (roughly $2.15 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RILY expiries trade a higher absolute premium for lower per-day decay. Position sizing on RILY should anchor to the underlying notional of $9.09 per share and to the trader's directional view on RILY stock.

RILY collar setup

The RILY 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 RILY near $9.09, the first option leg uses a $9.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RILY chain at a 28-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 RILY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$9.09	long
Sell 1	Call	$9.50	$0.81
Buy 1	Put	$8.50	$0.52

RILY collar risk and reward

Net Premium / Debit: -$880.00
Max Profit (per contract): $70.00
Max Loss (per contract): -$30.00
Breakeven(s): $8.80
Risk / Reward Ratio: 2.333

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.

RILY collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on RILY. 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	-99.9%	-$30.00
$2.02	-77.8%	-$30.00
$4.03	-55.7%	-$30.00
$6.04	-33.6%	-$30.00
$8.04	-11.5%	-$30.00
$10.05	+10.6%	+$70.00
$12.06	+32.7%	+$70.00
$14.07	+54.8%	+$70.00
$16.08	+76.9%	+$70.00
$18.09	+99.0%	+$70.00

When traders use collar on RILY

Collars on RILY hedge an existing long RILY 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.

RILY thesis for this collar

The market-implied 1-standard-deviation range for RILY extends from approximately $6.94 on the downside to $11.24 on the upside. A RILY collar hedges an existing long RILY 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 RILY IV rank near 3.22% 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 RILY at 82.64%. As a Financial Services name, RILY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RILY-specific events.

RILY 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. RILY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RILY alongside the broader basket even when RILY-specific fundamentals are unchanged. Always rebuild the position from current RILY chain quotes before placing a trade.

Frequently asked questions

What is a collar on RILY?: A collar on RILY is the collar strategy applied to RILY (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 RILY stock trading near $9.09, the strikes shown on this page are snapped to the nearest listed RILY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RILY 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 RILY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 82.64%), the computed maximum profit is $70.00 per contract and the computed maximum loss is -$30.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RILY collar?: The breakeven for the RILY collar priced on this page is roughly $8.80 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 RILY market-implied 1-standard-deviation expected move is approximately 23.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on RILY?: Collars on RILY hedge an existing long RILY 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 RILY implied volatility affect this collar?: RILY ATM IV is at 82.64% with IV rank near 3.22%, 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.