How are RUM 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 RUM collar priced from the end-of-day chain at a 30-day expiry (ATM IV 91.95%), the computed maximum profit is $24.00 per contract and the computed maximum loss is -$26.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RUM collar?

The breakeven for the RUM collar priced on this page is roughly $6.26 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 RUM market-implied 1-standard-deviation expected move is approximately 26.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RUM implied volatility affect this collar?

RUM ATM IV is at 91.95% with IV rank near 49.94%, 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.

RUM Collar Strategy

RUM (Rumble Inc.), in the Communication Services sector, (Internet Content & Information industry), listed on NASDAQ.

Rumble Inc. provides video sharing and cloud services platform in the United States, Canada, and internationally. The company offers Rumble Video, a free and subscription-based video sharing platform; Rumble Studio, a multi-platform livestreaming and monetization service for creators; Rumble Advertising Center, an in-house advertising marketplace; and Rumble Wallet, a non-custodial crypto wallet integrated directly into the Rumble platform enabling audiences to tip creators natively in crypto. It also provides Rumble Cloud, an infrastructure as a service that offers a portfolio of compute, storage, security, and networking offerings. In addition, the company offers banner/display advertising, video pre-roll/mid-roll advertising, and creator sponsorships, as well as subscriptions, pay-per-view, and tipping services. Rumble Inc. was founded in 2013 and is headquartered in Longboat Key, Florida.

RUM (Rumble Inc.) trades in the Communication Services sector, specifically Internet Content & Information, with a market capitalization of approximately $2.75B, a beta of 1.08 versus the broader market, a 52-week range of 4.62-10.99, average daily share volume of 3.5M, a public-listing history dating back to 2021, approximately 156 full-time employees. These structural characteristics shape how RUM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.08 places RUM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a collar on RUM?

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 RUM snapshot

As of June 30, 2026, spot at $6.36, ATM IV 91.95%, IV rank 49.94%, expected move 26.36%. The collar on RUM 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 17-day expiry.

Why this collar structure on RUM specifically: IV regime affects collar pricing on both sides; mid-range RUM IV at 91.95% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 26.36% (roughly $1.68 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RUM expiries trade a higher absolute premium for lower per-day decay. Position sizing on RUM should anchor to the underlying notional of $6.36 per share and to the trader's directional view on RUM stock.

RUM collar setup

The RUM 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 RUM near $6.36, the first option leg uses a $6.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RUM chain at a 17-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 RUM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$6.36	long
Sell 1	Call	$6.50	$0.45
Buy 1	Put	$6.00	$0.35

RUM collar risk and reward

Net Premium / Debit: -$626.00
Max Profit (per contract): $24.00
Max Loss (per contract): -$26.00
Breakeven(s): $6.26
Risk / Reward Ratio: 0.923

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.

RUM collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on RUM. 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	-99.8%	-$26.00
$1.42	-77.7%	-$26.00
$2.82	-55.7%	-$26.00
$4.23	-33.6%	-$26.00
$5.63	-11.5%	-$26.00
$7.04	+10.6%	+$24.00
$8.44	+32.7%	+$24.00
$9.85	+54.8%	+$24.00
$11.25	+76.9%	+$24.00
$12.66	+99.0%	+$24.00

When traders use collar on RUM

Collars on RUM hedge an existing long RUM 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.

RUM thesis for this collar

The market-implied 1-standard-deviation range for RUM extends from approximately $4.68 on the downside to $8.04 on the upside. A RUM collar hedges an existing long RUM 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 RUM IV rank near 49.94% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on RUM should anchor more to the directional view and the expected-move geometry. As a Communication Services name, RUM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RUM-specific events.

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

Frequently asked questions

What is a collar on RUM?: A collar on RUM is the collar strategy applied to RUM (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 RUM stock trading near $6.36, the strikes shown on this page are snapped to the nearest listed RUM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RUM 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 RUM collar priced from the end-of-day chain at a 30-day expiry (ATM IV 91.95%), the computed maximum profit is $24.00 per contract and the computed maximum loss is -$26.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RUM collar?: The breakeven for the RUM collar priced on this page is roughly $6.26 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 RUM market-implied 1-standard-deviation expected move is approximately 26.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on RUM?: Collars on RUM hedge an existing long RUM 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 RUM implied volatility affect this collar?: RUM ATM IV is at 91.95% with IV rank near 49.94%, 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.