CVEO Strangle Strategy
CVEO (Civeo Corporation), in the Industrials sector, (Specialty Business Services industry), listed on NYSE.
Civeo Corporation specializes in providing comprehensive hospitality and lodging solutions for the natural resource sector across Canada, Australia, and the United States. The company constructs and operates both permanent and temporary workforce accommodations, including large-scale lodges and villages, as well as versatile mobile units like modular and skid-mounted camps. Beyond housing, Civeo delivers a broad spectrum of integrated support services, such as catering, housekeeping, property maintenance, laundry, utility provision (including water/wastewater treatment and power generation), communication systems, security, and logistics. They also offer full development capabilities for these facilities, encompassing site selection, regulatory permitting, engineering design, manufacturing coordination, and on-site construction. With ownership and operation of 27 lodges and villages featuring approximately 28,000 rooms, alongside a fleet of mobile accommodation assets, Civeo serves major clients in the oil, mining, engineering, and associated service industries. The company's headquarters are located in Houston, Texas.
CVEO (Civeo Corporation) trades in the Industrials sector, specifically Specialty Business Services, with a market capitalization of approximately $370.1M, a beta of 0.73 versus the broader market, a 52-week range of 19.75-36.5, average daily share volume of 101K, a public-listing history dating back to 2014, approximately 3K full-time employees. These structural characteristics shape how CVEO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.73 places CVEO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CVEO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a strangle on CVEO?
A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money.
Current CVEO snapshot
As of June 30, 2026, spot at $34.86, ATM IV 54.70%, IV rank 13.48%, expected move 15.68%. The strangle on CVEO 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 strangle structure on CVEO specifically: CVEO IV at 54.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a CVEO strangle, with a market-implied 1-standard-deviation move of approximately 15.68% (roughly $5.47 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 CVEO expiries trade a higher absolute premium for lower per-day decay. Position sizing on CVEO should anchor to the underlying notional of $34.86 per share and to the trader's directional view on CVEO stock.
CVEO strangle setup
The CVEO strangle below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CVEO near $34.86, the first option leg uses a $37.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CVEO 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 CVEO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $37.00 | $0.56 |
| Buy 1 | Put | $33.00 | $0.60 |
CVEO strangle risk and reward
- Net Premium / Debit
- -$116.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$116.00
- Breakeven(s)
- $31.84, $38.16
- Risk / Reward Ratio
- Unbounded
Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit.
CVEO strangle payoff curve
Modeled P&L at expiration across a range of underlying prices for the strangle on CVEO. 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% | +$3,183.00 |
| $7.72 | -77.9% | +$2,412.34 |
| $15.42 | -55.8% | +$1,641.67 |
| $23.13 | -33.6% | +$871.01 |
| $30.84 | -11.5% | +$100.35 |
| $38.54 | +10.6% | +$38.32 |
| $46.25 | +32.7% | +$808.98 |
| $53.96 | +54.8% | +$1,579.64 |
| $61.66 | +76.9% | +$2,350.31 |
| $69.37 | +99.0% | +$3,120.97 |
When traders use strangle on CVEO
Strangles on CVEO are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the CVEO chain.
CVEO thesis for this strangle
The market-implied 1-standard-deviation range for CVEO extends from approximately $29.39 on the downside to $40.33 on the upside. A CVEO long strangle is the OTM cousin of the straddle: lower up-front cost but the underlying has to travel further past either OTM strike before the position turns profitable at expiration. Current CVEO IV rank near 13.48% 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 CVEO at 54.70%. As a Industrials name, CVEO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CVEO-specific events.
CVEO strangle positions are structurally neutral / high-volatility (long premium, OTM); 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. CVEO positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CVEO alongside the broader basket even when CVEO-specific fundamentals are unchanged. Always rebuild the position from current CVEO chain quotes before placing a trade.
Frequently asked questions
- What is a strangle on CVEO?
- A strangle on CVEO is the strangle strategy applied to CVEO (stock). The strategy is structurally neutral / high-volatility (long premium, OTM): A long strangle buys an OTM call and an OTM put at offset strikes, cheaper than a straddle but requiring a larger underlying move to profit since both wings start out-of-the-money. With CVEO stock trading near $34.86, the strikes shown on this page are snapped to the nearest listed CVEO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CVEO strangle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the put strike minus the combined debit (reached at zero). Max loss equals the combined debit times 100 (reached anywhere between the two OTM strikes). Two breakevens at call-strike plus debit and put-strike minus debit. For the CVEO strangle priced from the end-of-day chain at a 30-day expiry (ATM IV 54.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$116.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CVEO strangle?
- The breakeven for the CVEO strangle priced on this page is roughly $31.84 and $38.16 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 CVEO market-implied 1-standard-deviation expected move is approximately 15.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a strangle on CVEO?
- Strangles on CVEO are the cheaper cousin of the straddle - traders use them when they want a large directional move but are willing to give up the inner-strike sensitivity in exchange for a lower up-front debit on the CVEO chain.
- How does current CVEO implied volatility affect this strangle?
- CVEO ATM IV is at 54.70% with IV rank near 13.48%, 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.