RXST Collar Strategy
RXST (RxSight, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
As a medical technology enterprise, RxSight, Inc. (which operated as Calhoun Vision, Inc. until its rebranding in February 2017) specializes in the innovation, manufacturing, and distribution of light-adjustable intraocular lenses (LALs). These advanced lenses are specifically designed for use in cataract surgery, serving patients in both domestic and international markets. The cornerstone of the company's offerings is the RxSight system, a sophisticated solution that enables ophthalmologists to precisely tailor and enhance a patient's visual acuity following cataract removal. An integral part of this system is the RxSight light delivery device, an in-office instrument. This device emits UV light in a carefully controlled pattern to modify the LAL, thereby ensuring optimal visual correction after the surgical procedure. RxSight's primary clientele consists of eye surgeons specializing in cataract treatments.
RXST (RxSight, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $292.3M, a beta of 1.13 versus the broader market, a 52-week range of 4.48-13.22, average daily share volume of 1.0M, a public-listing history dating back to 2021, approximately 461 full-time employees. These structural characteristics shape how RXST stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.13 places RXST roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on RXST?
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.
RXST snapshot
As of August 14, 2026, spot at $6.89, ATM IV 144.90%, IV rank 28.38%, expected move 17.38%. The collar on RXST below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on RXST specifically: IV regime affects collar pricing on both sides; compressed RXST IV at 144.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 17.38% (roughly $1.20 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RXST expiries trade a higher absolute premium for lower per-day decay. Position sizing on RXST should anchor to the underlying notional of $6.89 per share and to the trader's directional view on RXST stock.
RXST collar setup
The RXST 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 RXST at $6.89 on that close, the first option leg uses a $7.23 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RXST chain at a 35-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 RXST shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $6.89 | long |
| Sell 1 | Call | $7.23 | N/A |
| Buy 1 | Put | $6.55 | N/A |
RXST 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.
RXST collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on RXST. 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 RXST
Collars on RXST hedge an existing long RXST 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.
RXST thesis for this collar
The market-implied 1-standard-deviation range for RXST extends from approximately $5.69 on the downside to $8.09 on the upside. A RXST collar hedges an existing long RXST 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 RXST IV rank near 28.38% 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 RXST at 144.90%. As a Healthcare name, RXST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RXST-specific events.
RXST 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. RXST positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RXST alongside the broader basket even when RXST-specific fundamentals are unchanged. Always rebuild the position from current RXST chain quotes before placing a trade.
Frequently asked questions
- What is a collar on RXST?
- A collar on RXST is the collar strategy applied to RXST (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 RXST stock at $6.89 on the most recent close, the strikes shown on this page are snapped to the nearest listed RXST chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are RXST 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 RXST collar priced from the end-of-day chain at a 30-day expiry (ATM IV 144.90%), 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 RXST collar?
- The breakeven for the RXST collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The RXST market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on RXST?
- Collars on RXST hedge an existing long RXST 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 RXST implied volatility affect this collar?
- RXST ATM IV is at 144.90% with IV rank near 28.38%, 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.