AMSF Covered Call Strategy
AMSF (AMERISAFE, Inc.), in the Financial Services sector, (Insurance - Specialty industry), listed on NASDAQ.
AMERISAFE, Inc., an insurance holding company, underwrites workers' compensation insurance in the United States. The company's workers' compensation insurance policies provide benefits to injured employees for temporary or permanent disability, death, and medical and hospital expenses. It serves small to mid-sized employers engaged in hazardous industries, including construction, trucking, logging and lumber, agriculture, manufacturing, telecommunications, and maritime. The company was incorporated in 1985 and is based in DeRidder, Louisiana.
AMSF (AMERISAFE, Inc.) trades in the Financial Services sector, specifically Insurance - Specialty, with a market capitalization of approximately $564.5M, a trailing P/E of 12.22, a beta of 0.27 versus the broader market, a 52-week range of 29.42-48.54, average daily share volume of 219K, a public-listing history dating back to 2005, approximately 362 full-time employees. These structural characteristics shape how AMSF stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.27 indicates AMSF has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. AMSF pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on AMSF?
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 AMSF snapshot
As of May 15, 2026, spot at $30.70, ATM IV 14.20%, IV rank 0.00%, expected move 4.07%. The covered call on AMSF 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 AMSF specifically: AMSF IV at 14.20% is on the cheap side of its 1-year range, which means a premium-selling AMSF covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 4.07% (roughly $1.25 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 AMSF expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMSF should anchor to the underlying notional of $30.70 per share and to the trader's directional view on AMSF stock.
AMSF covered call setup
The AMSF 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 AMSF near $30.70, the first option leg uses a $32.24 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMSF 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 AMSF shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $30.70 | long |
| Sell 1 | Call | $32.24 | N/A |
AMSF 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.
AMSF covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on AMSF. 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 AMSF
Covered calls on AMSF are an income strategy run on existing AMSF stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
AMSF thesis for this covered call
The market-implied 1-standard-deviation range for AMSF extends from approximately $29.45 on the downside to $31.95 on the upside. A AMSF covered call collects premium on an existing long AMSF position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether AMSF will breach that level within the expiration window. Current AMSF IV rank near 0.00% 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 AMSF at 14.20%. As a Financial Services name, AMSF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMSF-specific events.
AMSF 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. AMSF positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AMSF alongside the broader basket even when AMSF-specific fundamentals are unchanged. Short-premium structures like a covered call on AMSF carry tail risk when realized volatility exceeds the implied move; review historical AMSF earnings reactions and macro stress periods before sizing. Always rebuild the position from current AMSF chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on AMSF?
- A covered call on AMSF is the covered call strategy applied to AMSF (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 AMSF stock trading near $30.70, the strikes shown on this page are snapped to the nearest listed AMSF chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AMSF 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 AMSF covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 14.20%), 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 AMSF covered call?
- The breakeven for the AMSF 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 AMSF market-implied 1-standard-deviation expected move is approximately 4.07%; 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 AMSF?
- Covered calls on AMSF are an income strategy run on existing AMSF 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 AMSF implied volatility affect this covered call?
- AMSF ATM IV is at 14.20% with IV rank near 0.00%, 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.