RMAX Collar Strategy
RMAX (RE/MAX Holdings, Inc.), in the Real Estate sector, (Real Estate - Services industry), listed on NYSE.
RE/MAX Holdings, Inc. operates as a franchisor of real estate and mortgage brokerage services in the United States, Canada, and internationally. The company operates through three segments: Real Estate, Mortgage, and Marketing Funds. It offers real estate brokerage franchising services under the RE/MAX brand; mortgage brokerage services to real estate brokers, real estate professionals, mortgage professionals, and other investors under the Motto Mortgage brand; and mortgage loan processing software and services under the wemlo brand. In addition, the company provides First mobile app, which integrates a suite of digital products that enables agents, brokers, and teams to establish and manage client relationships; RE/MAX University platform, a learning hub designed to help each agent in their professional expertise; and Booj platform. The company was founded in 1973 and is headquartered in Denver, Colorado.
RMAX (RE/MAX Holdings, Inc.) trades in the Real Estate sector, specifically Real Estate - Services, with a market capitalization of approximately $185.7M, a trailing P/E of 510.63, a beta of 1.90 versus the broader market, a 52-week range of 5.46-11.62, average daily share volume of 690K, a public-listing history dating back to 2013, approximately 536 full-time employees. These structural characteristics shape how RMAX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.90 indicates RMAX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 510.63 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 RMAX?
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 RMAX snapshot
As of May 15, 2026, spot at $9.00, ATM IV 68.90%, IV rank 17.29%, expected move 19.75%. The collar on RMAX 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 RMAX specifically: IV regime affects collar pricing on both sides; compressed RMAX IV at 68.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 19.75% (roughly $1.78 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 RMAX expiries trade a higher absolute premium for lower per-day decay. Position sizing on RMAX should anchor to the underlying notional of $9.00 per share and to the trader's directional view on RMAX stock.
RMAX collar setup
The RMAX 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 RMAX near $9.00, the first option leg uses a $9.45 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RMAX 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 RMAX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $9.00 | long |
| Sell 1 | Call | $9.45 | N/A |
| Buy 1 | Put | $8.55 | N/A |
RMAX 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.
RMAX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on RMAX. 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 RMAX
Collars on RMAX hedge an existing long RMAX 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.
RMAX thesis for this collar
The market-implied 1-standard-deviation range for RMAX extends from approximately $7.22 on the downside to $10.78 on the upside. A RMAX collar hedges an existing long RMAX 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 RMAX IV rank near 17.29% 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 RMAX at 68.90%. As a Real Estate name, RMAX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RMAX-specific events.
RMAX 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. RMAX positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RMAX alongside the broader basket even when RMAX-specific fundamentals are unchanged. Always rebuild the position from current RMAX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on RMAX?
- A collar on RMAX is the collar strategy applied to RMAX (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 RMAX stock trading near $9.00, the strikes shown on this page are snapped to the nearest listed RMAX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RMAX 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 RMAX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 68.90%), 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 RMAX collar?
- The breakeven for the RMAX 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 RMAX market-implied 1-standard-deviation expected move is approximately 19.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on RMAX?
- Collars on RMAX hedge an existing long RMAX 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 RMAX implied volatility affect this collar?
- RMAX ATM IV is at 68.90% with IV rank near 17.29%, 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.