How are CHRW 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 CHRW covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 32.60%), the computed maximum profit is $944.00 per contract and the computed maximum loss is -$18,555.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CHRW covered call?

The breakeven for the CHRW covered call priced on this page is roughly $185.56 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 CHRW market-implied 1-standard-deviation expected move is approximately 9.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CHRW implied volatility affect this covered call?

CHRW ATM IV is at 32.60% with IV rank near 35.74%, 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.

CHRW Covered Call Strategy

CHRW (C.H. Robinson Worldwide, Inc.), in the Industrials sector, (Integrated Freight & Logistics industry), listed on NASDAQ.

C.H. Robinson Worldwide, Inc. serves as a global provider of diverse freight transportation and logistics solutions, assisting companies across numerous industries. The organization's business operations are segmented into two key areas: North American Surface Transportation and Global Forwarding. Its comprehensive range of services spans various shipping modalities. This includes brokerage for both full truckload (FTL) and less-than-truckload (LTL) freight, managing everything from single-pallet shipments to full container loads. C.H.

CHRW (C.H. Robinson Worldwide, Inc.) trades in the Industrials sector, specifically Integrated Freight & Logistics, with a market capitalization of approximately $21.14B, a trailing P/E of 35.87, a beta of 0.93 versus the broader market, a 52-week range of 95.04-203.34, average daily share volume of 1.8M, a public-listing history dating back to 1997, approximately 13K full-time employees. These structural characteristics shape how CHRW stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.93 places CHRW roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 35.87 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. CHRW pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on CHRW?

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 CHRW snapshot

As of June 30, 2026, spot at $188.06, ATM IV 32.60%, IV rank 35.74%, expected move 9.35%. The covered call on CHRW 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 CHRW specifically: CHRW IV at 32.60% is mid-range versus its 1-year history, so the credit collected on a CHRW covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 9.35% (roughly $17.58 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 CHRW expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHRW should anchor to the underlying notional of $188.06 per share and to the trader's directional view on CHRW stock.

CHRW covered call setup

The CHRW 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 CHRW near $188.06, the first option leg uses a $195.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHRW 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 CHRW shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$188.06	long
Sell 1	Call	$195.00	$2.50

CHRW covered call risk and reward

Net Premium / Debit: -$18,556.00
Max Profit (per contract): $944.00
Max Loss (per contract): -$18,555.00
Breakeven(s): $185.56
Risk / Reward Ratio: 0.051

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.

CHRW covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on CHRW. 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%	-$18,555.00
$41.59	-77.9%	-$14,397.00
$83.17	-55.8%	-$10,239.00
$124.75	-33.7%	-$6,081.00
$166.33	-11.6%	-$1,923.00
$207.91	+10.6%	+$944.00
$249.49	+32.7%	+$944.00
$291.07	+54.8%	+$944.00
$332.65	+76.9%	+$944.00
$374.23	+99.0%	+$944.00

When traders use covered call on CHRW

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

CHRW thesis for this covered call

The market-implied 1-standard-deviation range for CHRW extends from approximately $170.48 on the downside to $205.64 on the upside. A CHRW covered call collects premium on an existing long CHRW position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CHRW will breach that level within the expiration window. Current CHRW IV rank near 35.74% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on CHRW should anchor more to the directional view and the expected-move geometry. As a Industrials name, CHRW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHRW-specific events.

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

Frequently asked questions

What is a covered call on CHRW?: A covered call on CHRW is the covered call strategy applied to CHRW (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 CHRW stock trading near $188.06, the strikes shown on this page are snapped to the nearest listed CHRW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CHRW 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 CHRW covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 32.60%), the computed maximum profit is $944.00 per contract and the computed maximum loss is -$18,555.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CHRW covered call?: The breakeven for the CHRW covered call priced on this page is roughly $185.56 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 CHRW market-implied 1-standard-deviation expected move is approximately 9.35%; 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 CHRW?: Covered calls on CHRW are an income strategy run on existing CHRW 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 CHRW implied volatility affect this covered call?: CHRW ATM IV is at 32.60% with IV rank near 35.74%, 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.