How are AGNC 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 AGNC covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 18.40%), the computed maximum profit is $54.50 per contract and the computed maximum loss is -$1,094.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AGNC covered call?

The breakeven for the AGNC covered call priced on this page is roughly $10.96 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AGNC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.28%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AGNC implied volatility affect this covered call?

AGNC ATM IV is at 18.40% with IV rank near 2.27%, 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.

AGNC Covered Call Strategy

AGNC (AGNC Investment Corp.), in the Real Estate sector, (REIT - Mortgage industry), listed on NASDAQ.

AGNC Investment Corp. functions as a U.S.-based real estate investment trust (REIT). The firm primarily concentrates its investments on residential mortgage-backed securities (RMBS) and collateralized mortgage obligations (CMOs). A defining feature of these securities is that their principal and interest payments are secured by guarantees from either U.S. government-sponsored entities or federal government agencies. To fund these investments, AGNC largely depends on secured borrowings, specifically organized as repurchase agreements. The company has opted for REIT tax status under the 1986 Internal Revenue Code, which exempts it from federal corporate income taxes, contingent on distributing a minimum of 90% of its taxable profits to its shareholders. Originally established in 2008, the entity, with its headquarters in Bethesda, Maryland, operated as American Capital Agency Corp. until it adopted its current name, AGNC Investment Corp., in September 2016.

AGNC (AGNC Investment Corp.) trades in the Real Estate sector, specifically REIT - Mortgage, with a market capitalization of approximately $12.49B, a trailing P/E of 5.67, a beta of 1.31 versus the broader market, a 52-week range of 9.46-12.19, average daily share volume of 16.4M, a public-listing history dating back to 2008, approximately 54 full-time employees. These structural characteristics shape how AGNC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.31 indicates AGNC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 5.67 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. AGNC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on AGNC?

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.

AGNC snapshot

As of August 14, 2026, spot at $10.98, ATM IV 18.40%, IV rank 2.27%, expected move 5.28%. The covered call on AGNC below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.

Why this covered call structure on AGNC specifically: AGNC IV at 18.40% is on the cheap side of its 1-year range, which means a premium-selling AGNC covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 5.28% (roughly $0.58 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AGNC expiries trade a higher absolute premium for lower per-day decay. Position sizing on AGNC should anchor to the underlying notional of $10.98 per share and to the trader's directional view on AGNC stock.

AGNC covered call setup

The AGNC covered call below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AGNC at $10.98 on that close, the first option leg uses a $11.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AGNC chain at a 28-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 AGNC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$10.98	long
Sell 1	Call	$11.50	$0.03

AGNC covered call risk and reward

Net Premium / Debit: -$1,095.50
Max Profit (per contract): $54.50
Max Loss (per contract): -$1,094.50
Breakeven(s): $10.96
Risk / Reward Ratio: 0.050

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.

AGNC covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on AGNC. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$1,094.50
$2.44	-77.8%	-$851.84
$4.86	-55.7%	-$609.17
$7.29	-33.6%	-$366.51
$9.72	-11.5%	-$123.85
$12.14	+10.6%	+$54.50
$14.57	+32.7%	+$54.50
$17.00	+54.8%	+$54.50
$19.42	+76.9%	+$54.50
$21.85	+99.0%	+$54.50

When traders use covered call on AGNC

Covered calls on AGNC are an income strategy run on existing AGNC stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.

AGNC thesis for this covered call

The market-implied 1-standard-deviation range for AGNC extends from approximately $10.40 on the downside to $11.56 on the upside. A AGNC covered call collects premium on an existing long AGNC position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether AGNC will breach that level within the expiration window. Current AGNC IV rank near 2.27% 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 AGNC at 18.40%. As a Real Estate name, AGNC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AGNC-specific events.

AGNC 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. AGNC positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AGNC alongside the broader basket even when AGNC-specific fundamentals are unchanged. Short-premium structures like a covered call on AGNC carry tail risk when realized volatility exceeds the implied move; review historical AGNC earnings reactions and macro stress periods before sizing. Always rebuild the position from current AGNC chain quotes before placing a trade.

Frequently asked questions

What is a covered call on AGNC?: A covered call on AGNC is the covered call strategy applied to AGNC (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 AGNC stock at $10.98 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AGNC chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AGNC 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 AGNC covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 18.40%), the computed maximum profit is $54.50 per contract and the computed maximum loss is -$1,094.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AGNC covered call?: The breakeven for the AGNC covered call priced on this page is roughly $10.96 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AGNC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.28%; 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 AGNC?: Covered calls on AGNC are an income strategy run on existing AGNC 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 AGNC implied volatility affect this covered call?: AGNC ATM IV is at 18.40% with IV rank near 2.27%, 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.