OII Collar Strategy
OII (Oceaneering International, Inc.), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.
Headquartered in Houston, Texas, Oceaneering International, Inc., established in 1964, is a global provider of specialized engineering services, innovative products, and advanced robotic solutions. The company serves a diverse clientele spanning the offshore energy, defense, aerospace, manufacturing, and entertainment sectors. Its Subsea Robotics division deploys Remotely Operated Vehicles (ROVs) to assist drilling operations and perform vessel-based tasks such as subsea hardware deployment, construction activities, pipeline and facility inspections, maintenance, and repair. Furthermore, this segment supplies specialized ROV tooling, a range of survey services including hydrographic mapping and precise positioning, and autonomous underwater vehicles (AUVs) tailored for geoscience applications. By the close of 2021, the company maintained a fleet of 250 work-class ROVs. The Manufactured Products segment engineers and delivers essential distribution and connection systems for the energy sector, encompassing production control umbilicals, field development hardware, and pipeline connection and repair apparatus.
OII (Oceaneering International, Inc.) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $3.99B, a trailing P/E of 11.74, a beta of 1.16 versus the broader market, a 52-week range of 20.21-40.21, average daily share volume of 1.1M, a public-listing history dating back to 1975, approximately 10K full-time employees. These structural characteristics shape how OII stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.16 places OII roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.74 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a collar on OII?
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 OII snapshot
As of June 30, 2026, spot at $40.78, ATM IV 48.60%, IV rank 45.00%, expected move 13.93%. The collar on OII 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 OII specifically: IV regime affects collar pricing on both sides; mid-range OII IV at 48.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.93% (roughly $5.68 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 OII expiries trade a higher absolute premium for lower per-day decay. Position sizing on OII should anchor to the underlying notional of $40.78 per share and to the trader's directional view on OII stock.
OII collar setup
The OII 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 OII near $40.78, the first option leg uses a $42.82 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OII 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 OII shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $40.78 | long |
| Sell 1 | Call | $42.82 | N/A |
| Buy 1 | Put | $38.74 | N/A |
OII 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.
OII collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on OII. 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 OII
Collars on OII hedge an existing long OII 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.
OII thesis for this collar
The market-implied 1-standard-deviation range for OII extends from approximately $35.10 on the downside to $46.46 on the upside. A OII collar hedges an existing long OII 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 OII IV rank near 45.00% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on OII should anchor more to the directional view and the expected-move geometry. As a Energy name, OII options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OII-specific events.
OII 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. OII positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OII alongside the broader basket even when OII-specific fundamentals are unchanged. Always rebuild the position from current OII chain quotes before placing a trade.
Frequently asked questions
- What is a collar on OII?
- A collar on OII is the collar strategy applied to OII (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 OII stock trading near $40.78, the strikes shown on this page are snapped to the nearest listed OII chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OII 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 OII collar priced from the end-of-day chain at a 30-day expiry (ATM IV 48.60%), 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 OII collar?
- The breakeven for the OII collar priced on this page is no defined breakeven on the modeled curve 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 OII market-implied 1-standard-deviation expected move is approximately 13.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on OII?
- Collars on OII hedge an existing long OII 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 OII implied volatility affect this collar?
- OII ATM IV is at 48.60% with IV rank near 45.00%, 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.