RNGR Straddle Strategy
RNGR (Ranger Energy Services, Inc.), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.
Ranger Energy Services, Inc., founded in 2014 and based in Houston, Texas, delivers crucial onshore support to exploration and production companies throughout the United States. The company's operations are categorized into three main segments: High Specification Rigs, Wireline Services, and Processing Solutions and Ancillary Services. The High Specification Rigs division operates a fleet of 540 advanced well service rigs and accompanying equipment. These assets are vital for facilitating various operations across a well's lifespan, including essential maintenance. The Wireline Services segment offers comprehensive solutions aimed at identifying and resolving well production challenges. This includes wireline production and intervention services, covering cased hole logging, perforating, mechanical work, and pipe recovery.
RNGR (Ranger Energy Services, Inc.) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $374.5M, a trailing P/E of 25.31, a beta of 0.12 versus the broader market, a 52-week range of 11.14-18.815, average daily share volume of 239K, 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 0.12 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 straddle on RNGR?
A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.
Current RNGR snapshot
As of June 30, 2026, spot at $16.04, ATM IV 73.60%, IV rank 32.49%, expected move 21.10%. The straddle 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 17-day expiry.
Why this straddle structure on RNGR specifically: RNGR IV at 73.60% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 21.10% (roughly $3.38 on the underlying). The 17-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 $16.04 per share and to the trader's directional view on RNGR stock.
RNGR straddle setup
The RNGR straddle 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 $16.04, the first option leg uses a $16.04 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 17-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 1 | Call | $16.04 | N/A |
| Buy 1 | Put | $16.04 | N/A |
RNGR straddle 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
Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.
RNGR straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle 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 straddle on RNGR
Straddles on RNGR are pure-volatility plays that profit from large moves in either direction; traders typically buy RNGR straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
RNGR thesis for this straddle
The market-implied 1-standard-deviation range for RNGR extends from approximately $12.66 on the downside to $19.42 on the upside. A RNGR long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. Current RNGR IV rank near 32.49% is mid-range against its 1-year distribution, so the IV signal is neutral; the straddle thesis on RNGR should anchor more to the directional view and the expected-move geometry. 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 straddle positions are structurally neutral / high-volatility (long premium); 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. Always rebuild the position from current RNGR chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on RNGR?
- A straddle on RNGR is the straddle strategy applied to RNGR (stock). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. With RNGR stock trading near $16.04, 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 straddle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the RNGR straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 73.60%), 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 RNGR straddle?
- The breakeven for the RNGR straddle 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 21.10%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on RNGR?
- Straddles on RNGR are pure-volatility plays that profit from large moves in either direction; traders typically buy RNGR straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
- How does current RNGR implied volatility affect this straddle?
- RNGR ATM IV is at 73.60% with IV rank near 32.49%, 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.