RSG Long Call Strategy
RSG (Republic Services, Inc.), in the Industrials sector, (Waste Management industry), listed on NYSE.
Republic Services, Inc., together with its subsidiaries, offers environmental services in the United States. The company offers collection and processing of recyclable materials, collection, transfer and disposal of non-hazardous solid waste, and other environmental solutions. Its collection services include curbside collection of material for transport to transfer stations, landfills, or recycling processing centers; supply of recycling and waste containers; and renting of compactors. In addition, the company engages in the processing and sale of old corrugated containers, old newsprint, aluminum, glass, and other materials; and provision of landfill and transfer services. Further, it offers disposal of non-hazardous solid and liquid material and in-plant services, such as transportation and logistics. It serves small-container, large-container, and residential customers.
RSG (Republic Services, Inc.) trades in the Industrials sector, specifically Waste Management, with a market capitalization of approximately $62.66B, a trailing P/E of 29.02, a beta of 0.44 versus the broader market, a 52-week range of 196.41-258.75, average daily share volume of 1.5M, a public-listing history dating back to 1998, approximately 42K full-time employees. These structural characteristics shape how RSG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.44 indicates RSG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. RSG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long call on RSG?
A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration.
Current RSG snapshot
As of May 15, 2026, spot at $208.01, ATM IV 19.30%, IV rank 1.35%, expected move 5.53%. The long call on RSG 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 long call structure on RSG specifically: RSG IV at 19.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a RSG long call, with a market-implied 1-standard-deviation move of approximately 5.53% (roughly $11.51 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 RSG expiries trade a higher absolute premium for lower per-day decay. Position sizing on RSG should anchor to the underlying notional of $208.01 per share and to the trader's directional view on RSG stock.
RSG long call setup
The RSG long call below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With RSG near $208.01, the first option leg uses a $210.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RSG 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 RSG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $210.00 | $4.30 |
RSG long call risk and reward
- Net Premium / Debit
- -$430.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$430.00
- Breakeven(s)
- $214.30
- Risk / Reward Ratio
- Unbounded
Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium.
RSG long call payoff curve
Modeled P&L at expiration across a range of underlying prices for the long call on RSG. 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 | -100.0% | -$430.00 |
| $46.00 | -77.9% | -$430.00 |
| $91.99 | -55.8% | -$430.00 |
| $137.98 | -33.7% | -$430.00 |
| $183.97 | -11.6% | -$430.00 |
| $229.97 | +10.6% | +$1,566.53 |
| $275.96 | +32.7% | +$6,165.63 |
| $321.95 | +54.8% | +$10,764.74 |
| $367.94 | +76.9% | +$15,363.84 |
| $413.93 | +99.0% | +$19,962.95 |
When traders use long call on RSG
Long calls on RSG express a bullish thesis with defined risk; traders use them ahead of RSG catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
RSG thesis for this long call
The market-implied 1-standard-deviation range for RSG extends from approximately $196.50 on the downside to $219.52 on the upside. A RSG long call expresses a directional view that the underlying closes above the strike plus premium at expiration, ideally with implied volatility holding or expanding to preserve extrinsic value through the hold period. Current RSG IV rank near 1.35% 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 RSG at 19.30%. As a Industrials name, RSG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RSG-specific events.
RSG long call positions are structurally bullish; 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. RSG positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RSG alongside the broader basket even when RSG-specific fundamentals are unchanged. Long-premium structures like a long call on RSG are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current RSG chain quotes before placing a trade.
Frequently asked questions
- What is a long call on RSG?
- A long call on RSG is the long call strategy applied to RSG (stock). The strategy is structurally bullish: A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration. With RSG stock trading near $208.01, the strikes shown on this page are snapped to the nearest listed RSG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RSG long call max profit and max loss calculated?
- Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium. For the RSG long call priced from the end-of-day chain at a 30-day expiry (ATM IV 19.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$430.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RSG long call?
- The breakeven for the RSG long call priced on this page is roughly $214.30 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 RSG market-implied 1-standard-deviation expected move is approximately 5.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a long call on RSG?
- Long calls on RSG express a bullish thesis with defined risk; traders use them ahead of RSG catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
- How does current RSG implied volatility affect this long call?
- RSG ATM IV is at 19.30% with IV rank near 1.35%, 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.