OII Covered Call Strategy
OII (Oceaneering International, Inc.), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.
Oceaneering International, Inc. provides engineered services, products, and robotic solutions to the offshore energy, defense, aerospace, manufacturing, and entertainment industries worldwide. The company's Subsea Robotics segment provides remotely operated vehicles (ROVs) for drill support and vessel-based services, including subsea hardware installation, construction, pipeline inspection, survey and facilities inspection, maintenance, and repair. This segment also offers ROV tooling, and survey services, such as hydrographic survey and positioning services, as well as autonomous underwater vehicles for geoscience. As of December 31, 2021, this segment owned 250 work-class ROVs. Its Manufactured Products segment provides distribution and connection systems, including production control umbilicals and field development hardware, pipeline connection, and repair systems to the energy industry; and autonomous mobile robots and automated guided vehicle technology and entertainment systems to various industries. The company's Offshore Projects Group segment offers subsea installation and intervention, including riserless light well intervention services and inspection, and maintenance and repair services; installation and workover control systems, and ROV workover control systems; project management and engineering; and drill pipe riser services and systems, and wellhead load relief solutions.
OII (Oceaneering International, Inc.) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $3.88B, a trailing P/E of 11.40, a beta of 1.17 versus the broader market, a 52-week range of 18.45-40.12, average daily share volume of 1.3M, 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 1.17 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 11.40 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 covered call on OII?
A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income.
Current OII snapshot
As of May 15, 2026, spot at $37.78, ATM IV 50.40%, IV rank 48.11%, expected move 14.45%. The covered call 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 34-day expiry.
Why this covered call structure on OII specifically: OII IV at 50.40% is mid-range versus its 1-year history, so the credit collected on a OII covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 14.45% (roughly $5.46 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 OII expiries trade a higher absolute premium for lower per-day decay. Position sizing on OII should anchor to the underlying notional of $37.78 per share and to the trader's directional view on OII stock.
OII covered call setup
The OII covered call 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 $37.78, the first option leg uses a $39.67 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 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 OII shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $37.78 | long |
| Sell 1 | Call | $39.67 | N/A |
OII covered call 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 equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium.
OII covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call 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 covered call on OII
Covered calls on OII are an income strategy run on existing OII stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
OII thesis for this covered call
The market-implied 1-standard-deviation range for OII extends from approximately $32.32 on the downside to $43.24 on the upside. A OII covered call collects premium on an existing long OII position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether OII will breach that level within the expiration window. Current OII IV rank near 48.11% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call 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 covered call positions are structurally neutral to slightly bullish; 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. Short-premium structures like a covered call on OII carry tail risk when realized volatility exceeds the implied move; review historical OII earnings reactions and macro stress periods before sizing. Always rebuild the position from current OII chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on OII?
- A covered call on OII is the covered call strategy applied to OII (stock). The strategy is structurally neutral to slightly bullish: A covered call pairs long stock with a short out-of-the-money call, collecting premium and capping upside above the short strike in exchange for income. With OII stock trading near $37.78, 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 covered call max profit and max loss calculated?
- Max profit equals short-strike minus cost basis plus premium times 100; max loss is cost basis minus premium (at zero). Breakeven is cost basis minus premium. For the OII covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 50.40%), 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 covered call?
- The breakeven for the OII covered call 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 14.45%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a covered call on OII?
- Covered calls on OII are an income strategy run on existing OII stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
- How does current OII implied volatility affect this covered call?
- OII ATM IV is at 50.40% with IV rank near 48.11%, 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.