AUB Covered Call Strategy
AUB (Atlantic Union Bankshares Corporation), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.
Atlantic Union Bankshares Corporation operates as the holding company for Atlantic Union Bank that provides banking and related financial services to consumers and businesses. The company accepts various deposit products, including checking, savings, NOW, time deposit, and money market accounts; certificates of deposit; and other depository services. It also provides loans for commercial, industrial, residential mortgage, and consumer purposes. In addition, the company offers credit cards, automated teller machine (ATM) services, mobile and internet banking services, and online bill payment services, as well as financial planning, trust, and wealth management services. Further, it provides securities, brokerage, and investment advisory products and services; and originates and sells residential loan products in the secondary market. As of February 25, 2022, it operated 130 branches and approximately 150 ATMs in Virginia, Maryland, and North Carolina.
AUB (Atlantic Union Bankshares Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $5.22B, a trailing P/E of 14.94, a beta of 0.80 versus the broader market, a 52-week range of 28.11-42.18, average daily share volume of 1.0M, a public-listing history dating back to 1993, approximately 2K full-time employees. These structural characteristics shape how AUB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.80 places AUB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AUB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on AUB?
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 AUB snapshot
As of May 15, 2026, spot at $36.48, ATM IV 24.10%, IV rank 1.60%, expected move 6.91%. The covered call on AUB 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 AUB specifically: AUB IV at 24.10% is on the cheap side of its 1-year range, which means a premium-selling AUB covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 6.91% (roughly $2.52 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 AUB expiries trade a higher absolute premium for lower per-day decay. Position sizing on AUB should anchor to the underlying notional of $36.48 per share and to the trader's directional view on AUB stock.
AUB covered call setup
The AUB 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 AUB near $36.48, the first option leg uses a $38.30 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AUB 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 AUB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $36.48 | long |
| Sell 1 | Call | $38.30 | N/A |
AUB 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.
AUB covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on AUB. 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 AUB
Covered calls on AUB are an income strategy run on existing AUB stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
AUB thesis for this covered call
The market-implied 1-standard-deviation range for AUB extends from approximately $33.96 on the downside to $39.00 on the upside. A AUB covered call collects premium on an existing long AUB position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether AUB will breach that level within the expiration window. Current AUB IV rank near 1.60% 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 AUB at 24.10%. As a Financial Services name, AUB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AUB-specific events.
AUB 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. AUB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AUB alongside the broader basket even when AUB-specific fundamentals are unchanged. Short-premium structures like a covered call on AUB carry tail risk when realized volatility exceeds the implied move; review historical AUB earnings reactions and macro stress periods before sizing. Always rebuild the position from current AUB chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on AUB?
- A covered call on AUB is the covered call strategy applied to AUB (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 AUB stock trading near $36.48, the strikes shown on this page are snapped to the nearest listed AUB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AUB 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 AUB covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 24.10%), 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 AUB covered call?
- The breakeven for the AUB 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 AUB market-implied 1-standard-deviation expected move is approximately 6.91%; 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 AUB?
- Covered calls on AUB are an income strategy run on existing AUB 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 AUB implied volatility affect this covered call?
- AUB ATM IV is at 24.10% with IV rank near 1.60%, 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.