How are RTX 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 RTX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 35.24%), the computed maximum profit is $811.00 per contract and the computed maximum loss is -$689.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RTX collar?

The breakeven for the RTX collar priced on this page is roughly $186.89 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 RTX market-implied 1-standard-deviation expected move is approximately 10.10%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RTX implied volatility affect this collar?

RTX ATM IV is at 35.24% with IV rank near 81.58%, 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.

RTX Collar Strategy

RTX (RTX Corporation), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.

RTX Corporation, a major player in the aerospace and defense sectors, provides sophisticated systems and extensive services to a diverse global clientele. This includes commercial entities, military organizations, and government agencies, both within the United States and internationally. The company's operations are divided into three primary business units: Collins Aerospace, Pratt & Whitney, and Raytheon. The Collins Aerospace segment delivers a broad range of aerospace and defense products, alongside comprehensive aftermarket support solutions. Its customer base spans manufacturers of civil and military aircraft, commercial airlines, and operators in regional, business, general aviation, defense, and commercial space ventures. This division's offerings cover the design, production, and maintenance of aircraft interior components, such as oxygen systems, food and beverage preparation and storage facilities, galley systems, and lavatory and wastewater management.

RTX (RTX Corporation) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $253.16B, a trailing P/E of 34.92, a beta of 0.31 versus the broader market, a 52-week range of 142.66-214.5, average daily share volume of 5.4M, a public-listing history dating back to 1952, approximately 185K full-time employees. These structural characteristics shape how RTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.31 indicates RTX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. RTX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on RTX?

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 RTX snapshot

As of June 29, 2026, spot at $187.44, ATM IV 35.24%, IV rank 81.58%, expected move 10.10%. The collar on RTX 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 32-day expiry.

Why this collar structure on RTX specifically: IV regime affects collar pricing on both sides; elevated RTX IV at 35.24% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.10% (roughly $18.94 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on RTX should anchor to the underlying notional of $187.44 per share and to the trader's directional view on RTX stock.

RTX collar setup

The RTX 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 RTX near $187.44, the first option leg uses a $195.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RTX chain at a 32-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 RTX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$187.44	long
Sell 1	Call	$195.00	$4.80
Buy 1	Put	$180.00	$4.25

RTX collar risk and reward

Net Premium / Debit: -$18,689.00
Max Profit (per contract): $811.00
Max Loss (per contract): -$689.00
Breakeven(s): $186.89
Risk / Reward Ratio: 1.177

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.

RTX collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on RTX. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$689.00
$41.45	-77.9%	-$689.00
$82.90	-55.8%	-$689.00
$124.34	-33.7%	-$689.00
$165.78	-11.6%	-$689.00
$207.22	+10.6%	+$811.00
$248.67	+32.7%	+$811.00
$290.11	+54.8%	+$811.00
$331.55	+76.9%	+$811.00
$373.00	+99.0%	+$811.00

When traders use collar on RTX

Collars on RTX hedge an existing long RTX 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.

RTX thesis for this collar

The market-implied 1-standard-deviation range for RTX extends from approximately $168.50 on the downside to $206.38 on the upside. A RTX collar hedges an existing long RTX 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 RTX IV rank near 81.58% 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 RTX at 35.24%. As a Industrials name, RTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RTX-specific events.

RTX 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. RTX positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RTX alongside the broader basket even when RTX-specific fundamentals are unchanged. Always rebuild the position from current RTX chain quotes before placing a trade.

Frequently asked questions

What is a collar on RTX?: A collar on RTX is the collar strategy applied to RTX (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 RTX stock trading near $187.44, the strikes shown on this page are snapped to the nearest listed RTX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RTX 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 RTX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 35.24%), the computed maximum profit is $811.00 per contract and the computed maximum loss is -$689.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RTX collar?: The breakeven for the RTX collar priced on this page is roughly $186.89 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 RTX market-implied 1-standard-deviation expected move is approximately 10.10%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on RTX?: Collars on RTX hedge an existing long RTX 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 RTX implied volatility affect this collar?: RTX ATM IV is at 35.24% with IV rank near 81.58%, 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.