AMTX Covered Call Strategy
AMTX (Aemetis, Inc.), in the Basic Materials sector, (Chemicals - Specialty industry), listed on NASDAQ.
Aemetis, Inc. is an enterprise specializing in renewable natural gas and sustainable fuels, conducting operations across North America and India. The company's business activities are structured into three primary divisions: California Ethanol, Dairy Renewable Natural Gas, and India Biodiesel. A core objective for Aemetis is the procurement, development, and market launch of innovative products and technologies that offer negative carbon intensity, serving as eco-friendly alternatives to traditional petroleum-based goods. Its biodiesel products are distributed to a diverse range of customers, including government oil marketing agencies, transportation companies, various resellers, distributors, and private refiners. These sales are facilitated through both its in-house sales team and independent sales agents, as well as via brokers who then supply end-users. Beyond biodiesel, the company also produces and markets ethanol.
AMTX (Aemetis, Inc.) trades in the Basic Materials sector, specifically Chemicals - Specialty, with a market capitalization of approximately $122.8M, a beta of 1.44 versus the broader market, a 52-week range of 1.3-3.8, average daily share volume of 1.4M, a public-listing history dating back to 2006, approximately 220 full-time employees. These structural characteristics shape how AMTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.44 indicates AMTX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a covered call on AMTX?
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.
AMTX snapshot
As of August 14, 2026, spot at $1.77, ATM IV 170.00%, IV rank 31.29%, expected move 48.74%. The covered call on AMTX below is built from the 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 AMTX specifically: AMTX IV at 170.00% is mid-range versus its 1-year history, so the credit collected on a AMTX covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 48.74% (roughly $0.86 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 AMTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMTX should anchor to the underlying notional of $1.77 per share and to the trader's directional view on AMTX stock.
AMTX covered call setup
The AMTX 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 AMTX at $1.77 on that close, the first option leg uses a $1.86 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMTX 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 AMTX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $1.77 | long |
| Sell 1 | Call | $1.86 | N/A |
AMTX 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.
AMTX covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on AMTX. 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 AMTX
Covered calls on AMTX are an income strategy run on existing AMTX stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
AMTX thesis for this covered call
The market-implied 1-standard-deviation range for AMTX extends from approximately $0.91 on the downside to $2.63 on the upside. A AMTX covered call collects premium on an existing long AMTX position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether AMTX will breach that level within the expiration window. Current AMTX IV rank near 31.29% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on AMTX should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, AMTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMTX-specific events.
AMTX 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. AMTX positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AMTX alongside the broader basket even when AMTX-specific fundamentals are unchanged. Short-premium structures like a covered call on AMTX carry tail risk when realized volatility exceeds the implied move; review historical AMTX earnings reactions and macro stress periods before sizing. Always rebuild the position from current AMTX chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on AMTX?
- A covered call on AMTX is the covered call strategy applied to AMTX (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 AMTX stock at $1.77 on the most recent close, the strikes shown on this page are snapped to the nearest listed AMTX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AMTX 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 AMTX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 170.00%), 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 AMTX covered call?
- The breakeven for the AMTX covered call priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 AMTX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 48.74%; 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 AMTX?
- Covered calls on AMTX are an income strategy run on existing AMTX 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 AMTX implied volatility affect this covered call?
- AMTX ATM IV is at 170.00% with IV rank near 31.29%, 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.