How are CHE 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 CHE covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 27.70%), the computed maximum profit is $2,927.50 per contract and the computed maximum loss is -$46,071.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CHE covered call?

The breakeven for the CHE covered call priced on this page is roughly $460.72 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 CHE market-implied 1-standard-deviation expected move is approximately 7.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CHE implied volatility affect this covered call?

CHE ATM IV is at 27.70% 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.

CHE Covered Call Strategy

CHE (Chemed Corporation), in the Healthcare sector, (Medical - Care Facilities industry), listed on NYSE.

Chemed Corporation provides hospice and palliative care services to patients through a network of physicians, doctors, registered nurses, home health aides, social workers, clergy, and volunteers primarily in the United States. The company operates through two segments: VITAS and Roto-Rooter segments. The company offers plumbing, drain cleaning, excavation, water restoration, and other related services to residential and commercial customers through company-owned branches, independent contractors, and franchisees. The company also provides direct medical services to patients, as well as spiritual and emotional counseling to both patients and their families. Chemed Corporation was incorporated in 1970 and is headquartered in Cincinnati, Ohio.

CHE (Chemed Corporation) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $6.15B, a trailing P/E of 24.39, a beta of 0.54 versus the broader market, a 52-week range of 365.21-508.71, average daily share volume of 240K, a public-listing history dating back to 1973, approximately 16K full-time employees. These structural characteristics shape how CHE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.54 indicates CHE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. CHE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on CHE?

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 CHE snapshot

As of June 30, 2026, spot at $464.65, ATM IV 27.70%, IV rank 31.29%, expected move 7.94%. The covered call on CHE 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 17-day expiry.

Why this covered call structure on CHE specifically: CHE IV at 27.70% is mid-range versus its 1-year history, so the credit collected on a CHE covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 7.94% (roughly $36.90 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CHE expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHE should anchor to the underlying notional of $464.65 per share and to the trader's directional view on CHE stock.

CHE covered call setup

The CHE 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 CHE near $464.65, the first option leg uses a $490.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHE chain at a 17-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 CHE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$464.65	long
Sell 1	Call	$490.00	$3.93

CHE covered call risk and reward

Net Premium / Debit: -$46,072.50
Max Profit (per contract): $2,927.50
Max Loss (per contract): -$46,071.50
Breakeven(s): $460.72
Risk / Reward Ratio: 0.064

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.

CHE covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on CHE. 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	-100.0%	-$46,071.50
$102.75	-77.9%	-$35,797.94
$205.48	-55.8%	-$25,524.38
$308.22	-33.7%	-$15,250.83
$410.95	-11.6%	-$4,977.27
$513.69	+10.6%	+$2,927.50
$616.42	+32.7%	+$2,927.50
$719.16	+54.8%	+$2,927.50
$821.89	+76.9%	+$2,927.50
$924.63	+99.0%	+$2,927.50

When traders use covered call on CHE

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

CHE thesis for this covered call

The market-implied 1-standard-deviation range for CHE extends from approximately $427.75 on the downside to $501.55 on the upside. A CHE covered call collects premium on an existing long CHE position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CHE will breach that level within the expiration window. Current CHE IV rank near 31.29% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on CHE should anchor more to the directional view and the expected-move geometry. As a Healthcare name, CHE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHE-specific events.

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

Frequently asked questions

What is a covered call on CHE?: A covered call on CHE is the covered call strategy applied to CHE (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 CHE stock trading near $464.65, the strikes shown on this page are snapped to the nearest listed CHE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CHE 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 CHE covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 27.70%), the computed maximum profit is $2,927.50 per contract and the computed maximum loss is -$46,071.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CHE covered call?: The breakeven for the CHE covered call priced on this page is roughly $460.72 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 CHE market-implied 1-standard-deviation expected move is approximately 7.94%; 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 CHE?: Covered calls on CHE are an income strategy run on existing CHE 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 CHE implied volatility affect this covered call?: CHE ATM IV is at 27.70% 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.