RRGB Collar Strategy
RRGB (Red Robin Gourmet Burgers, Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NASDAQ.
Red Robin Gourmet Burgers, Inc., together with its subsidiaries, develops, operates, and franchises full-service and casual-dining restaurants. The company's restaurants primarily offer burgers and shareable pizzas; various appetizers, salads, soups, sandwiches, seafood, and other entrees; and desserts, wings, milkshakes, alcoholic and non-alcoholic specialty drinks, cocktails, wine, and beers. As of December 26, 2021, it operated approximately 531 Red Robin restaurants, including 430 were company-owned and 101 were operated by franchisees in the United States and one Canadian province. Red Robin Gourmet Burgers, Inc. was founded in 1969 and is based in Greenwood Village, Colorado.
RRGB (Red Robin Gourmet Burgers, Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $68.4M, a beta of 2.36 versus the broader market, a 52-week range of 2.46-7.89, average daily share volume of 365K, a public-listing history dating back to 2002, approximately 21K full-time employees. These structural characteristics shape how RRGB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.36 indicates RRGB 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 RRGB?
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 RRGB snapshot
As of May 15, 2026, spot at $3.76, ATM IV 206.60%, IV rank 70.65%, expected move 25.08%. The collar on RRGB 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 RRGB specifically: IV regime affects collar pricing on both sides; elevated RRGB IV at 206.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 25.08% (roughly $0.94 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 RRGB expiries trade a higher absolute premium for lower per-day decay. Position sizing on RRGB should anchor to the underlying notional of $3.76 per share and to the trader's directional view on RRGB stock.
RRGB collar setup
The RRGB 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 RRGB near $3.76, the first option leg uses a $3.95 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RRGB 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 RRGB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $3.76 | long |
| Sell 1 | Call | $3.95 | N/A |
| Buy 1 | Put | $3.57 | N/A |
RRGB 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.
RRGB collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on RRGB. 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 RRGB
Collars on RRGB hedge an existing long RRGB 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.
RRGB thesis for this collar
The market-implied 1-standard-deviation range for RRGB extends from approximately $2.82 on the downside to $4.70 on the upside. A RRGB collar hedges an existing long RRGB 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 RRGB IV rank near 70.65% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on RRGB at 206.60%. As a Consumer Cyclical name, RRGB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RRGB-specific events.
RRGB 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. RRGB positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RRGB alongside the broader basket even when RRGB-specific fundamentals are unchanged. Always rebuild the position from current RRGB chain quotes before placing a trade.
Frequently asked questions
- What is a collar on RRGB?
- A collar on RRGB is the collar strategy applied to RRGB (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 RRGB stock trading near $3.76, the strikes shown on this page are snapped to the nearest listed RRGB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RRGB 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 RRGB collar priced from the end-of-day chain at a 30-day expiry (ATM IV 206.60%), 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 RRGB collar?
- The breakeven for the RRGB 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 RRGB market-implied 1-standard-deviation expected move is approximately 25.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on RRGB?
- Collars on RRGB hedge an existing long RRGB 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 RRGB implied volatility affect this collar?
- RRGB ATM IV is at 206.60% with IV rank near 70.65%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.