REPX Long Put Strategy
REPX (Riley Exploration Permian, Inc.), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on AMEX.
Riley Exploration Permian, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in Texas and New Mexico. The company's activities are primarily focused on the San Andres Formation, a shelf margin deposit on the Central Basin Platform and Northwest Shelf. Its acreage is primarily located on contiguous blocks in Yoakum County, Texas; and Lea and Roosevelt Counties, New Mexico. As of September 30, 2021, the company had approximately 31,352 net acres and a total of 77 net producing wells. Riley Exploration Permian, Inc. is headquartered in Oklahoma City, Oklahoma.
REPX (Riley Exploration Permian, Inc.) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $784.4M, a trailing P/E of 12.21, a beta of 0.92 versus the broader market, a 52-week range of 24.08-41.26, average daily share volume of 439K, a public-listing history dating back to 1998, approximately 103 full-time employees. These structural characteristics shape how REPX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.92 places REPX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. REPX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on REPX?
A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration.
Current REPX snapshot
As of May 15, 2026, spot at $36.83, ATM IV 46.60%, IV rank 14.85%, expected move 13.36%. The long put on REPX 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 long put structure on REPX specifically: REPX IV at 46.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a REPX long put, with a market-implied 1-standard-deviation move of approximately 13.36% (roughly $4.92 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 REPX expiries trade a higher absolute premium for lower per-day decay. Position sizing on REPX should anchor to the underlying notional of $36.83 per share and to the trader's directional view on REPX stock.
REPX long put setup
The REPX long put below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With REPX near $36.83, the first option leg uses a $36.83 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed REPX 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 REPX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $36.83 | N/A |
REPX long put 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 the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
REPX long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on REPX. 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 long put on REPX
Long puts on REPX hedge an existing long REPX stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying REPX exposure being hedged.
REPX thesis for this long put
The market-implied 1-standard-deviation range for REPX extends from approximately $31.91 on the downside to $41.75 on the upside. A REPX long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long REPX position with one put per 100 shares held. Current REPX IV rank near 14.85% 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 REPX at 46.60%. As a Energy name, REPX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to REPX-specific events.
REPX long put positions are structurally bearish; 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. REPX positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move REPX alongside the broader basket even when REPX-specific fundamentals are unchanged. Long-premium structures like a long put on REPX are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current REPX chain quotes before placing a trade.
Frequently asked questions
- What is a long put on REPX?
- A long put on REPX is the long put strategy applied to REPX (stock). The strategy is structurally bearish: A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration. With REPX stock trading near $36.83, the strikes shown on this page are snapped to the nearest listed REPX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are REPX long put max profit and max loss calculated?
- Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the REPX long put priced from the end-of-day chain at a 30-day expiry (ATM IV 46.60%), 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 REPX long put?
- The breakeven for the REPX long put 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 REPX market-implied 1-standard-deviation expected move is approximately 13.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a long put on REPX?
- Long puts on REPX hedge an existing long REPX stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying REPX exposure being hedged.
- How does current REPX implied volatility affect this long put?
- REPX ATM IV is at 46.60% with IV rank near 14.85%, 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.