How are AUR 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 AUR covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 59.83%), the computed maximum profit is $66.00 per contract and the computed maximum loss is -$683.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AUR covered call?

The breakeven for the AUR covered call priced on this page is roughly $6.84 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 AUR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AUR implied volatility affect this covered call?

AUR ATM IV is at 59.83% with IV rank near 4.37%, 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.

AUR Covered Call Strategy

AUR (Aurora Innovation, Inc.), in the Technology sector, (Information Technology Services industry), listed on NASDAQ.

Aurora Innovation, Inc. is a U.S.-based company specializing in autonomous driving technology. Its primary focus involves creating the Aurora Driver, an advanced platform that integrates various self-driving hardware components, software systems, and data services. This comprehensive solution is engineered to enable and unify autonomous capabilities across diverse vehicle types, including passenger automobiles, light commercial vans, and heavy-duty trucks. The company was founded in 2017 and maintains its headquarters in Pittsburgh, Pennsylvania.

AUR (Aurora Innovation, Inc.) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $13.47B, a beta of 2.66 versus the broader market, a 52-week range of 3.6-8.565, average daily share volume of 27.2M, a public-listing history dating back to 2021, approximately 2K full-time employees. These structural characteristics shape how AUR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.66 indicates AUR 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 AUR?

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.

AUR snapshot

As of August 14, 2026, spot at $7.09, ATM IV 59.83%, IV rank 4.37%, expected move 17.15%. The covered call on AUR 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 AUR specifically: AUR IV at 59.83% is on the cheap side of its 1-year range, which means a premium-selling AUR covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 17.15% (roughly $1.22 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 AUR expiries trade a higher absolute premium for lower per-day decay. Position sizing on AUR should anchor to the underlying notional of $7.09 per share and to the trader's directional view on AUR stock.

AUR covered call setup

The AUR 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 AUR at $7.09 on that close, the first option leg uses a $7.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AUR 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 AUR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$7.09	long
Sell 1	Call	$7.50	$0.25

AUR covered call risk and reward

Net Premium / Debit: -$684.00
Max Profit (per contract): $66.00
Max Loss (per contract): -$683.00
Breakeven(s): $6.84
Risk / Reward Ratio: 0.097

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.

AUR covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on AUR. 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%	-$683.00
$1.58	-77.8%	-$526.35
$3.14	-55.7%	-$369.69
$4.71	-33.6%	-$213.04
$6.28	-11.5%	-$56.39
$7.84	+10.6%	+$66.00
$9.41	+32.7%	+$66.00
$10.98	+54.8%	+$66.00
$12.54	+76.9%	+$66.00
$14.11	+99.0%	+$66.00

When traders use covered call on AUR

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

AUR thesis for this covered call

The market-implied 1-standard-deviation range for AUR extends from approximately $5.87 on the downside to $8.31 on the upside. A AUR covered call collects premium on an existing long AUR position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether AUR will breach that level within the expiration window. Current AUR IV rank near 4.37% 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 AUR at 59.83%. As a Technology name, AUR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AUR-specific events.

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

Frequently asked questions

What is a covered call on AUR?: A covered call on AUR is the covered call strategy applied to AUR (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 AUR stock at $7.09 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AUR chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AUR 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 AUR covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 59.83%), the computed maximum profit is $66.00 per contract and the computed maximum loss is -$683.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AUR covered call?: The breakeven for the AUR covered call priced on this page is roughly $6.84 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 AUR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.15%; 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 AUR?: Covered calls on AUR are an income strategy run on existing AUR 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 AUR implied volatility affect this covered call?: AUR ATM IV is at 59.83% with IV rank near 4.37%, 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.