RPD Collar Strategy
RPD (Rapid7, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.
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RPD (Rapid7, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $868.8M, a trailing P/E of 43.26, a beta of 0.96 versus the broader market, a 52-week range of 4.97-21.77, average daily share volume of 2.4M, a public-listing history dating back to 2015, approximately 3K full-time employees. These structural characteristics shape how RPD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.96 places RPD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 43.26 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 RPD?
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.
RPD snapshot
As of August 14, 2026, spot at $12.88, ATM IV 68.40%, IV rank 15.52%, expected move 19.61%. The collar on RPD below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on RPD specifically: IV regime affects collar pricing on both sides; compressed RPD IV at 68.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 19.61% (roughly $2.53 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RPD expiries trade a higher absolute premium for lower per-day decay. Position sizing on RPD should anchor to the underlying notional of $12.88 per share and to the trader's directional view on RPD stock.
RPD collar setup
The RPD collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With RPD at $12.88 on that close, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RPD chain at a 35-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 RPD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $12.88 | long |
| Sell 1 | Call | $14.00 | $0.90 |
| Buy 1 | Put | $12.00 | $0.60 |
RPD collar risk and reward
- Net Premium / Debit
- -$1,258.00
- Max Profit (per contract)
- $142.00
- Max Loss (per contract)
- -$58.00
- Breakeven(s)
- $12.58
- Risk / Reward Ratio
- 2.448
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.
RPD collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on RPD. 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% | -$58.00 |
| $2.86 | -77.8% | -$58.00 |
| $5.70 | -55.7% | -$58.00 |
| $8.55 | -33.6% | -$58.00 |
| $11.40 | -11.5% | -$58.00 |
| $14.24 | +10.6% | +$142.00 |
| $17.09 | +32.7% | +$142.00 |
| $19.94 | +54.8% | +$142.00 |
| $22.78 | +76.9% | +$142.00 |
| $25.63 | +99.0% | +$142.00 |
When traders use collar on RPD
Collars on RPD hedge an existing long RPD 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.
RPD thesis for this collar
The market-implied 1-standard-deviation range for RPD extends from approximately $10.35 on the downside to $15.41 on the upside. A RPD collar hedges an existing long RPD 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 RPD IV rank near 15.52% 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 RPD at 68.40%. As a Technology name, RPD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RPD-specific events.
RPD 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. RPD positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RPD alongside the broader basket even when RPD-specific fundamentals are unchanged. Always rebuild the position from current RPD chain quotes before placing a trade.
Frequently asked questions
- What is a collar on RPD?
- A collar on RPD is the collar strategy applied to RPD (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 RPD stock at $12.88 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed RPD chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are RPD 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 RPD collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 68.40%), the computed maximum profit is $142.00 per contract and the computed maximum loss is -$58.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RPD collar?
- The breakeven for the RPD collar priced on this page is roughly $12.58 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The RPD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 19.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on RPD?
- Collars on RPD hedge an existing long RPD 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 RPD implied volatility affect this collar?
- RPD ATM IV is at 68.40% with IV rank near 15.52%, 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.