OIS Collar Strategy
OIS (Oil States International, Inc.), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.
Oil States International, Inc., through its subsidiaries, provides oilfield products and services for the drilling, completion, subsea, production, and infrastructure sectors of the oil and gas industry worldwide. The company operates through three segments: Well Site Services, Downhole Technologies, and Offshore/Manufactured Products. The Well Site Services segment offers a range of equipment and services that are used to drill for, establish, and maintain the flow of oil and natural gas from a well throughout its lifecycle. It also provides wellhead isolation, frac valve, wireline and coiled tubing support, flowback and well testing, pipe recovery systems, gravel pack and sand control, blowout preventer, and drilling services. The Downhole Technologies segment provides oil and gas perforation systems, and downhole tools in support of completion, intervention, wireline, and well abandonment operations. This segment also designs, manufactures, and markets its consumable engineered products to oilfield service, and exploration and production companies.
OIS (Oil States International, Inc.) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $542.3M, a beta of 1.20 versus the broader market, a 52-week range of 4.22-14.5, average daily share volume of 1.1M, a public-listing history dating back to 2001, approximately 2K full-time employees. These structural characteristics shape how OIS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.20 places OIS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on OIS?
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 OIS snapshot
As of May 15, 2026, spot at $8.98, ATM IV 18.60%, IV rank 1.49%, expected move 5.33%. The collar on OIS 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 OIS specifically: IV regime affects collar pricing on both sides; compressed OIS IV at 18.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.33% (roughly $0.48 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 OIS expiries trade a higher absolute premium for lower per-day decay. Position sizing on OIS should anchor to the underlying notional of $8.98 per share and to the trader's directional view on OIS stock.
OIS collar setup
The OIS 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 OIS near $8.98, the first option leg uses a $9.43 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OIS 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 OIS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $8.98 | long |
| Sell 1 | Call | $9.43 | N/A |
| Buy 1 | Put | $8.53 | N/A |
OIS 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.
OIS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on OIS. 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 OIS
Collars on OIS hedge an existing long OIS 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.
OIS thesis for this collar
The market-implied 1-standard-deviation range for OIS extends from approximately $8.50 on the downside to $9.46 on the upside. A OIS collar hedges an existing long OIS 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 OIS IV rank near 1.49% 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 OIS at 18.60%. As a Energy name, OIS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OIS-specific events.
OIS 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. OIS positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OIS alongside the broader basket even when OIS-specific fundamentals are unchanged. Always rebuild the position from current OIS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on OIS?
- A collar on OIS is the collar strategy applied to OIS (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 OIS stock trading near $8.98, the strikes shown on this page are snapped to the nearest listed OIS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OIS 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 OIS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 18.60%), 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 OIS collar?
- The breakeven for the OIS 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 OIS market-implied 1-standard-deviation expected move is approximately 5.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on OIS?
- Collars on OIS hedge an existing long OIS 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 OIS implied volatility affect this collar?
- OIS ATM IV is at 18.60% with IV rank near 1.49%, 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.