OIS Covered Call 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 covered call on OIS?
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 OIS snapshot
As of May 15, 2026, spot at $8.98, ATM IV 18.60%, IV rank 1.49%, expected move 5.33%. The covered call 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 covered call structure on OIS specifically: OIS IV at 18.60% is on the cheap side of its 1-year range, which means a premium-selling OIS covered call collects less credit per unit of strike-width risk, 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 covered call setup
The OIS 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 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 |
OIS 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.
OIS covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call 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 covered call on OIS
Covered calls on OIS are an income strategy run on existing OIS stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
OIS thesis for this covered call
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 covered call collects premium on an existing long OIS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether OIS will breach that level within the expiration window. 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 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. 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. Short-premium structures like a covered call on OIS carry tail risk when realized volatility exceeds the implied move; review historical OIS earnings reactions and macro stress periods before sizing. Always rebuild the position from current OIS chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on OIS?
- A covered call on OIS is the covered call strategy applied to OIS (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 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 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 OIS covered call 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 covered call?
- The breakeven for the OIS 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 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 covered call on OIS?
- Covered calls on OIS are an income strategy run on existing OIS 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 OIS implied volatility affect this covered call?
- 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.