NOG Collar Strategy
NOG (Northern Oil and Gas, Inc.), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NYSE.
Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. The company primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. As of December 31, 2021, it owned working interests in 7,436 gross producing wells; and had proved reserves of 287,682 million barrels of oil equivalent. The company is based in Minnetonka, Minnesota.
NOG (Northern Oil and Gas, Inc.) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $2.47B, a beta of 0.77 versus the broader market, a 52-week range of 20.18-32.62, average daily share volume of 2.7M, a public-listing history dating back to 2007, approximately 49 full-time employees. These structural characteristics shape how NOG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.77 places NOG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. NOG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on NOG?
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 NOG snapshot
As of May 15, 2026, spot at $24.34, ATM IV 43.00%, IV rank 12.39%, expected move 12.33%. The collar on NOG 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 34-day expiry.
Why this collar structure on NOG specifically: IV regime affects collar pricing on both sides; compressed NOG IV at 43.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.33% (roughly $3.00 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NOG expiries trade a higher absolute premium for lower per-day decay. Position sizing on NOG should anchor to the underlying notional of $24.34 per share and to the trader's directional view on NOG stock.
NOG collar setup
The NOG 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 NOG near $24.34, the first option leg uses a $26.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NOG chain at a 34-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 NOG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $24.34 | long |
| Sell 1 | Call | $26.00 | $0.65 |
| Buy 1 | Put | $23.00 | $0.63 |
NOG collar risk and reward
- Net Premium / Debit
- -$2,431.50
- Max Profit (per contract)
- $168.50
- Max Loss (per contract)
- -$131.50
- Breakeven(s)
- $24.32
- Risk / Reward Ratio
- 1.281
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.
NOG collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NOG. 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% | -$131.50 |
| $5.39 | -77.9% | -$131.50 |
| $10.77 | -55.7% | -$131.50 |
| $16.15 | -33.6% | -$131.50 |
| $21.53 | -11.5% | -$131.50 |
| $26.91 | +10.6% | +$168.50 |
| $32.29 | +32.7% | +$168.50 |
| $37.67 | +54.8% | +$168.50 |
| $43.05 | +76.9% | +$168.50 |
| $48.44 | +99.0% | +$168.50 |
When traders use collar on NOG
Collars on NOG hedge an existing long NOG 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.
NOG thesis for this collar
The market-implied 1-standard-deviation range for NOG extends from approximately $21.34 on the downside to $27.34 on the upside. A NOG collar hedges an existing long NOG 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 NOG IV rank near 12.39% 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 NOG at 43.00%. As a Energy name, NOG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NOG-specific events.
NOG 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. NOG positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NOG alongside the broader basket even when NOG-specific fundamentals are unchanged. Always rebuild the position from current NOG chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NOG?
- A collar on NOG is the collar strategy applied to NOG (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 NOG stock trading near $24.34, the strikes shown on this page are snapped to the nearest listed NOG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NOG 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 NOG collar priced from the end-of-day chain at a 30-day expiry (ATM IV 43.00%), the computed maximum profit is $168.50 per contract and the computed maximum loss is -$131.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NOG collar?
- The breakeven for the NOG collar priced on this page is roughly $24.32 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 NOG market-implied 1-standard-deviation expected move is approximately 12.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NOG?
- Collars on NOG hedge an existing long NOG 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 NOG implied volatility affect this collar?
- NOG ATM IV is at 43.00% with IV rank near 12.39%, 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.