RRR Collar Strategy
RRR (Red Rock Resorts, Inc.), in the Consumer Cyclical sector, (Gambling, Resorts & Casinos industry), listed on NASDAQ.
Red Rock Resorts, Inc., through its interest in Station Holdco and Station LLC, develops and operates casino and entertainment properties in the United States. It operates through two segments, Las Vegas Operations and Native American Management. The company owns and operates 9 gaming and entertainment facilities, and 10 smaller casinos in the Las Vegas regional market. In addition, it manages Graton Resort & Casino in northern California. As of December 31, 2021, it operated approximately 13,894 slot machines, 240 table games, and 3,081 hotel rooms in the Las Vegas market. The company was formerly known as Station Casinos Corp. and changed its name to Red Rock Resorts, Inc. in January 2016.
RRR (Red Rock Resorts, Inc.) trades in the Consumer Cyclical sector, specifically Gambling, Resorts & Casinos, with a market capitalization of approximately $3.02B, a trailing P/E of 15.95, a beta of 1.35 versus the broader market, a 52-week range of 44.28-68.99, average daily share volume of 946K, a public-listing history dating back to 2016, approximately 9K full-time employees. These structural characteristics shape how RRR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.35 indicates RRR has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. RRR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on RRR?
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 RRR snapshot
As of May 15, 2026, spot at $51.42, ATM IV 36.00%, IV rank 41.67%, expected move 10.32%. The collar on RRR 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 RRR specifically: IV regime affects collar pricing on both sides; mid-range RRR IV at 36.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.32% (roughly $5.31 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 RRR expiries trade a higher absolute premium for lower per-day decay. Position sizing on RRR should anchor to the underlying notional of $51.42 per share and to the trader's directional view on RRR stock.
RRR collar setup
The RRR 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 RRR near $51.42, the first option leg uses a $53.99 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RRR 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 RRR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $51.42 | long |
| Sell 1 | Call | $53.99 | N/A |
| Buy 1 | Put | $48.85 | N/A |
RRR 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.
RRR collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on RRR. 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 RRR
Collars on RRR hedge an existing long RRR 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.
RRR thesis for this collar
The market-implied 1-standard-deviation range for RRR extends from approximately $46.11 on the downside to $56.73 on the upside. A RRR collar hedges an existing long RRR 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 RRR IV rank near 41.67% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on RRR should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, RRR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RRR-specific events.
RRR 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. RRR positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RRR alongside the broader basket even when RRR-specific fundamentals are unchanged. Always rebuild the position from current RRR chain quotes before placing a trade.
Frequently asked questions
- What is a collar on RRR?
- A collar on RRR is the collar strategy applied to RRR (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 RRR stock trading near $51.42, the strikes shown on this page are snapped to the nearest listed RRR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RRR 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 RRR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 36.00%), 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 RRR collar?
- The breakeven for the RRR 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 RRR market-implied 1-standard-deviation expected move is approximately 10.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on RRR?
- Collars on RRR hedge an existing long RRR 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 RRR implied volatility affect this collar?
- RRR ATM IV is at 36.00% with IV rank near 41.67%, 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.