RNGR Covered Call Strategy
RNGR (Ranger Energy Services, Inc.), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.
Ranger Energy Services, Inc. provides onshore high specification well service rigs, wireline completion services, and complementary services to exploration and production companies in the United States. It operates through three segments: High Specification Rigs, Wireline Services, and Processing Solutions and Ancillary Services. The High Specification Rigs segment offers well service rigs and complementary equipment and services to facilitate operations throughout the lifecycle of a well; and well maintenance services. This segment also has a fleet of 540 well service rigs. The Wireline Services segment provides wireline production and intervention services to provide information to identify and resolve well production problems through cased hole logging, perforating, mechanical, and pipe recovery services; wireline completion services are used primarily for pump-down perforating operations to create perforations or entry holes through the production casing; and pumping services. This segment also has a fleet of 68 wireline units and four high-pressure pump trucks.
RNGR (Ranger Energy Services, Inc.) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $385.7M, a trailing P/E of 26.06, a beta of 0.15 versus the broader market, a 52-week range of 10.56-18.815, average daily share volume of 229K, a public-listing history dating back to 2017, approximately 2K full-time employees. These structural characteristics shape how RNGR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.15 indicates RNGR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. RNGR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on RNGR?
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 RNGR snapshot
As of May 15, 2026, spot at $16.45, ATM IV 34.20%, IV rank 12.42%, expected move 9.80%. The covered call on RNGR 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 RNGR specifically: RNGR IV at 34.20% is on the cheap side of its 1-year range, which means a premium-selling RNGR covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.80% (roughly $1.61 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 RNGR expiries trade a higher absolute premium for lower per-day decay. Position sizing on RNGR should anchor to the underlying notional of $16.45 per share and to the trader's directional view on RNGR stock.
RNGR covered call setup
The RNGR 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 RNGR near $16.45, the first option leg uses a $17.27 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RNGR 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 RNGR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $16.45 | long |
| Sell 1 | Call | $17.27 | N/A |
RNGR 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.
RNGR covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on RNGR. 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 RNGR
Covered calls on RNGR are an income strategy run on existing RNGR stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
RNGR thesis for this covered call
The market-implied 1-standard-deviation range for RNGR extends from approximately $14.84 on the downside to $18.06 on the upside. A RNGR covered call collects premium on an existing long RNGR position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether RNGR will breach that level within the expiration window. Current RNGR IV rank near 12.42% 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 RNGR at 34.20%. As a Energy name, RNGR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RNGR-specific events.
RNGR 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. RNGR positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RNGR alongside the broader basket even when RNGR-specific fundamentals are unchanged. Short-premium structures like a covered call on RNGR carry tail risk when realized volatility exceeds the implied move; review historical RNGR earnings reactions and macro stress periods before sizing. Always rebuild the position from current RNGR chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on RNGR?
- A covered call on RNGR is the covered call strategy applied to RNGR (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 RNGR stock trading near $16.45, the strikes shown on this page are snapped to the nearest listed RNGR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RNGR 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 RNGR covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 34.20%), 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 RNGR covered call?
- The breakeven for the RNGR 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 RNGR market-implied 1-standard-deviation expected move is approximately 9.80%; 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 RNGR?
- Covered calls on RNGR are an income strategy run on existing RNGR 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 RNGR implied volatility affect this covered call?
- RNGR ATM IV is at 34.20% with IV rank near 12.42%, 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.