You can make an in-kind distribution to satisfy your RMD; there is no requirement that the RMD be made in cash. The gross distribution amount will be based on the value of the stock at the time of the distribution and the value distributed becomes the cost basis of the shares outside the IRA. The holding period for capital gains treatment also begins on the date of the distribution. Ignoring any transaction fees, the result will be equivalent to selling the shares inside the IRA, distributing the cash, then repurchasing the shares outside the IRA (assuming that the repurchase is on the same day at the same share price).
Satisfying an RMD with an in-kind distribution is a little more tricky than doing it with cash because of the constantly varying share price. The distribution might come up a little bit short or over relative to the RMD amount. If you come up short, you'll need to make an additional distribution to complete the RMD. If it comes up over you could potentially roll over the excess shares distributed, keeping in mind the one rollover per 12 months limitation, but that's a bit of a tricky prospect in itself. If you are anticipating a rebound in the share value it would generally be better to leave the amount in excess of the RMD distributed and have that rebound be taxable as long-term capital gains by holding the shares for at least a year after the distribution date. But there is no way to realize the loss already incurred in the IRA. That loss simply represents an amount which you will not have to include in income because it's an amount that will never be distributed from the IRA.
