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Best Options Strategy for REI

By Dennis Bosmans · Updated 2026 · 2 min read · Risk disclaimer

Looking for the best options strategy for Ring Energy, Inc. (REI)? There is no single answer — the right play depends on your outlook, your risk tolerance and current implied volatility. Below, our free engine shows the highest-scoring defined-risk strategy on the live REI option chain right now, and a simple map from your view on REI to the strategy that fits it. Model any of them in the calculator before you trade.

About REI

Ring Energy, Inc. (REI) is a major company in Oil & Gas E&P. Options traders on REI tend to watch , since these can drive large moves in the share price.

About Ring Energy, Inc.

Ring Energy operates as an independent oil and gas producer focused on finding, developing, and extracting crude oil and natural gas from properties it owns or leases. The company holds acreage across West Texas and southeastern New Mexico, with most of its holdings concentrated in the Permian Basin region. Its portfolio includes both producing assets ready for extraction and undeveloped land that represents future drilling opportunities. The company sells whatever oil and gas it produces directly to end customers, middlemen, and various buyers in the energy market.

The company generates revenue by selling the oil and natural gas it extracts from its leased and owned properties. Its operational footprint spans multiple Texas counties—Andrews, Gaines, Crane, Ector, Winkler, and Ward—plus acreage in Yoakum County, Texas and Lea County, New Mexico. Ring Energy was established in 2004 and rebranded under its current name in 2008, with headquarters in The Woodlands, Texas. The company operates at a scale typical of independent producers in the Permian Basin, one of North America's most prolific oil and gas regions.

Today's top-scoring strategy for REI

Our engine ranks defined-risk strategies on the live REI chain by probability of profit and risk/reward, then surfaces the best-scoring one. It is an educational illustration, not advice.

Long Call Butterfly neutral
Price: $100.00Implied volatility: 32%Expiration: 2026-07-17 (30d)
ActionQtyTypeStrikePremium
BuyCALL$95$6.83
SellCALL$100$3.82
BuyCALL$105$1.87
P/L at expiry vs today At expiry Today ±1σ
$82$100$118
Max Profit
$394
Max Loss
−$106
Net Debit (cost)
$106
Breakeven(s)
$96.06, $103.94
Position Greeks
Δ
0.43
Γ
−1.202
Θ
1.69
ν
−3.16
Time decay (price held)

Simulation

Forward simulation of 6,000 lognormal price paths to expiration — not a historical backtest.

Win rate
33%
Mean P/L
−$2
Median
−$106
Exp. move (1σ)
9%
5th pct
−$106
25th pct
−$106
75th pct
$96
95th pct
$333

Strategy analysis

Simulated price paths (time × price)
now $100BE $96BE $104$86$101$1160d15d30d
$-100$144$388

Greeks vs price

Δ — $ P/L per $1 move in the underlying (share-equivalent exposure).
Θ — $ P/L per day from time decay.
ν — $ P/L per +1% in implied volatility.
Γ — how fast delta changes per $1 move.

Price × volatility (today)

−30%−15%IV+15%+30%
$125−$105−$103−$99−$94−$89
$120−$102−$96−$88−$82−$77
$115−$88−$77−$69−$64−$61
$110−$50−$42−$40−$41−$43
$105$10−$1−$11−$20−$28
$100$42$18$0−$13−$23
$95$3−$7−$16−$25−$32
$90−$64−$55−$52−$51−$52
$85−$98−$91−$84−$78−$75
$80−$105−$103−$100−$96−$92
$75−$106−$106−$105−$104−$101
Analyze REI in the calculator → Share this pick ↗

Illustrative example at REI's latest available price, computed with the same engine as the tool. Live option fills and the real IV skew refresh during US market hours.

Implied volatility

REI typically trades with moderate implied volatility, broadly in line with other large-cap stocks. Implied volatility drives option prices, so it is worth checking the live chain before you trade.

REI insider trading activity (SEC Form 4)

Open-market insider transactions at REI over roughly the last six months, from SEC Form 4 filings. Open-market buys are the rarer, more telling signal — routine selling under pre-arranged plans is common, so read a net-selling figure with that in mind.

Open-market buys
2 · $338K
Open-market sells
0 · —
Net (buy − sell)
+$338K
InsiderActionSharesValueDate
McKinney Paul D.Buy50,000$60K2026-06-15
Johl Sundip SinghBuy231,000$279K2026-06-15

Source: SEC Form 4 filings via Finnhub. Open-market purchases (P) and sales (S) only — grants, option exercises, gifts and tax withholding are excluded. Informational context, not investment advice.

Earnings & IV crush

REI's next earnings report is due around November 4, 2026. Options that expire after it price in a binary move, so their implied volatility is elevated and usually collapses right after the announcement — an "IV crush". If your expiration falls before this date, the trade sidesteps the event.

Key figures

Market cap
$399M
Beta (vs market)
0.84
52-week range
$0.83–$2.00
Short interest
2.8% of float · 2.1 days to cover

How to choose an options strategy for REI

Start with your outlook on REI, then match it to a defined-risk structure. Here are the most common choices and when each makes sense:

Bullish

You expect REI to rise

Buy a call for leverage with capped risk, or a bull call spread to lower the cost and breakeven when you have a target price.

Long Call → Bull Call Spread →

Bearish

You expect REI to fall

Buy a put to profit from a decline with defined risk, or a bear put spread to cheapen the trade when you expect a measured move down.

Long Put → Bear Put Spread →

Neutral

You expect REI to trade in a range

Sell an iron condor to collect premium while REI stays between two strikes, or write a covered call against shares you already own.

Iron Condor → Covered Call →

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How we pick the best strategy

For each ticker we pull the live option chain, build every supported strategy around the at-the-money strikes, and score them on probability of profit, risk/reward and capital efficiency — favouring defined-risk structures where the maximum loss is known up front. Methodology →

Open REI in the free calculator →

Frequently asked questions

What is the best options strategy for REI?

It depends on your outlook. Bullish traders often use a long call or bull call spread on REI; bearish traders a long put or bear put spread; neutral traders an iron condor or covered call. Our live scan above shows the current highest-scoring defined-risk play.

Are REI options liquid enough to trade?

Ring Energy, Inc. (REI) is among the most actively-traded US options, which usually means tight bid/ask spreads and plenty of strikes and expirations — though you should always check the open interest and spread on the exact contract.

How much money do I need to trade REI options?

Buying a single REI call or put can cost as little as the premium (often one to a few hundred dollars), while income strategies like a cash-secured put need enough capital to buy 100 shares if assigned.

Is this financial advice?

No. Everything here is educational and uses delayed, third-party data. It is not a recommendation to trade REI or any security. Do your own research.

What does Ring Energy, Inc. do?

Ring Energy, Inc. (REI) operates in the Oil & Gas E&P industry. The "About Ring Energy, Inc." section above gives a fuller picture of what the company does and how it earns money.

Does Ring Energy, Inc. pay a dividend?

We don't show a confirmed dividend yield for Ring Energy, Inc. here, so treat it as uncertain: before writing calls, check its current dividend and ex-dividend date with your broker — an approaching ex-dividend date can trigger early assignment on in-the-money short calls.

When does Ring Energy, Inc. next report earnings?

Ring Energy, Inc.'s next earnings are expected around November 4, 2026. Implied volatility usually climbs into the report and drops sharply afterwards (IV crush) — important for any options position held over the date.

Tickers related to REI

Comparing REI with similar names can help you choose the best options strategy:

KOSKosmos Energy Ltd.AMPYAmplify Energy Corp.GTEGran Tierra Energy Inc.MTDRMatador Resources Company

Company information

Headquarters
1725 Hughes Landing Boulevard, Suite 900, The Woodlands, TX, 77380, United States
Industry
Oil & Gas E&P
Employees
111
CEO
Mr. Paul D. McKinney
Phone
281 397 3699
Website
www.ringenergy.com

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Educational use only. Quotes are delayed ~15 minutes and nothing here is financial advice. Options trading involves substantial risk of loss. Privacy · Terms.