How are ALOY 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 ALOY covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 119.10%), the computed maximum profit is $218.00 per contract and the computed maximum loss is -$1,281.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ALOY covered call?

The breakeven for the ALOY covered call priced on this page is roughly $12.82 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 ALOY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 34.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ALOY implied volatility affect this covered call?

ALOY ATM IV is at 119.10% with IV rank near 60.55%, 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.

ALOY Covered Call Strategy

ALOY (REalloys Inc.), in the Basic Materials sector, (Other Precious Metals industry), listed on NASDAQ.

REalloys Inc. plays a crucial role in fortifying the domestic supply chain for rare earth elements and their associated magnetic products. Its comprehensive operations span the entire value chain, from reclaiming materials through recycling and extracting them via mining, to oxide generation, subsequent metallization, alloy creation, and final magnet fabrication. This enterprise commenced operations on October 4, 2011, and operates from its corporate base in Boca Raton, Florida.

ALOY (REalloys Inc.) trades in the Basic Materials sector, specifically Other Precious Metals, with a market capitalization of approximately $855.6M, a beta of 0.62 versus the broader market, a 52-week range of 5.64-26.9, average daily share volume of 2.5M, a public-listing history dating back to 2021, approximately 17 full-time employees. These structural characteristics shape how ALOY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.62 indicates ALOY has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a covered call on ALOY?

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.

ALOY snapshot

As of August 14, 2026, spot at $14.72, ATM IV 119.10%, IV rank 60.55%, expected move 34.14%. The covered call on ALOY 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 35-day expiry.

Why this covered call structure on ALOY specifically: ALOY IV at 119.10% is mid-range versus its 1-year history, so the credit collected on a ALOY covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 34.14% (roughly $5.03 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ALOY expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALOY should anchor to the underlying notional of $14.72 per share and to the trader's directional view on ALOY stock.

ALOY covered call setup

The ALOY 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 ALOY at $14.72 on that close, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALOY chain at a 35-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 ALOY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$14.72	long
Sell 1	Call	$15.00	$1.90

ALOY covered call risk and reward

Net Premium / Debit: -$1,282.00
Max Profit (per contract): $218.00
Max Loss (per contract): -$1,281.00
Breakeven(s): $12.82
Risk / Reward Ratio: 0.170

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.

ALOY covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on ALOY. 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%	-$1,281.00
$3.26	-77.8%	-$955.64
$6.52	-55.7%	-$630.29
$9.77	-33.6%	-$304.93
$13.02	-11.5%	+$20.43
$16.28	+10.6%	+$218.00
$19.53	+32.7%	+$218.00
$22.78	+54.8%	+$218.00
$26.04	+76.9%	+$218.00
$29.29	+99.0%	+$218.00

When traders use covered call on ALOY

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

ALOY thesis for this covered call

The market-implied 1-standard-deviation range for ALOY extends from approximately $9.69 on the downside to $19.75 on the upside. A ALOY covered call collects premium on an existing long ALOY position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether ALOY will breach that level within the expiration window. Current ALOY IV rank near 60.55% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on ALOY should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, ALOY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALOY-specific events.

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

Frequently asked questions

What is a covered call on ALOY?: A covered call on ALOY is the covered call strategy applied to ALOY (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 ALOY stock at $14.72 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ALOY chain strike and the premiums come straight from that session's bid/ask midpoint.
How are ALOY 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 ALOY covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 119.10%), the computed maximum profit is $218.00 per contract and the computed maximum loss is -$1,281.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ALOY covered call?: The breakeven for the ALOY covered call priced on this page is roughly $12.82 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 ALOY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 34.14%; 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 ALOY?: Covered calls on ALOY are an income strategy run on existing ALOY 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 ALOY implied volatility affect this covered call?: ALOY ATM IV is at 119.10% with IV rank near 60.55%, 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.