How are CLMT 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 CLMT covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 52.20%), the computed maximum profit is $321.50 per contract and the computed maximum loss is -$2,977.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CLMT covered call?

The breakeven for the CLMT covered call priced on this page is roughly $29.79 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 CLMT market-implied 1-standard-deviation expected move is approximately 14.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CLMT implied volatility affect this covered call?

CLMT ATM IV is at 52.20% with IV rank near 32.53%, 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.

CLMT Covered Call Strategy

CLMT (Calumet, Inc.), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NASDAQ.

Calumet, Inc. manufactures, formulates, and markets slate of specialty branded products to various consumer-facing and industrial markets in North America and internationally. Its Specialty Products and Solutions segment offers various solvents, waxes, customized lubricating oils, white oils, petrolatums, gels, esters, and other products. The company's Montana/Renewables segment focuses on processing renewable feedstocks into renewable hydrogen, renewable natural gas, renewable propane, renewable naphtha, renewable kerosene/aviation fuel, and renewable diesel. This segment also processes Canadian crude oil into conventional gasoline, diesel, jet fuel, and specialty grades of asphalt. Its Performance Brands segment blends, packages, and markets high performance products through Royal Purple, Bel-Ray, and TruFuel brands. Calumet GP, LLC serves as the general partner for Calumet Specialty Products Partners, L.P.

CLMT (Calumet, Inc.) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $2.74B, a beta of 0.72 versus the broader market, a 52-week range of 12.7-36.94, average daily share volume of 1.3M, a public-listing history dating back to 2006, approximately 2K full-time employees. These structural characteristics shape how CLMT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.72 places CLMT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a covered call on CLMT?

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 CLMT snapshot

As of May 15, 2026, spot at $31.06, ATM IV 52.20%, IV rank 32.53%, expected move 14.97%. The covered call on CLMT 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 CLMT specifically: CLMT IV at 52.20% is mid-range versus its 1-year history, so the credit collected on a CLMT covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 14.97% (roughly $4.65 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 CLMT expiries trade a higher absolute premium for lower per-day decay. Position sizing on CLMT should anchor to the underlying notional of $31.06 per share and to the trader's directional view on CLMT stock.

CLMT covered call setup

The CLMT 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 CLMT near $31.06, the first option leg uses a $33.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CLMT 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 CLMT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$31.06	long
Sell 1	Call	$33.00	$1.28

CLMT covered call risk and reward

Net Premium / Debit: -$2,978.50
Max Profit (per contract): $321.50
Max Loss (per contract): -$2,977.50
Breakeven(s): $29.79
Risk / Reward Ratio: 0.108

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.

CLMT covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on CLMT. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$2,977.50
$6.88	-77.9%	-$2,290.86
$13.74	-55.8%	-$1,604.21
$20.61	-33.6%	-$917.57
$27.48	-11.5%	-$230.93
$34.34	+10.6%	+$321.50
$41.21	+32.7%	+$321.50
$48.08	+54.8%	+$321.50
$54.94	+76.9%	+$321.50
$61.81	+99.0%	+$321.50

When traders use covered call on CLMT

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

CLMT thesis for this covered call

The market-implied 1-standard-deviation range for CLMT extends from approximately $26.41 on the downside to $35.71 on the upside. A CLMT covered call collects premium on an existing long CLMT position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CLMT will breach that level within the expiration window. Current CLMT IV rank near 32.53% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on CLMT should anchor more to the directional view and the expected-move geometry. As a Energy name, CLMT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CLMT-specific events.

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

Frequently asked questions

What is a covered call on CLMT?: A covered call on CLMT is the covered call strategy applied to CLMT (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 CLMT stock trading near $31.06, the strikes shown on this page are snapped to the nearest listed CLMT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CLMT 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 CLMT covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 52.20%), the computed maximum profit is $321.50 per contract and the computed maximum loss is -$2,977.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CLMT covered call?: The breakeven for the CLMT covered call priced on this page is roughly $29.79 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 CLMT market-implied 1-standard-deviation expected move is approximately 14.97%; 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 CLMT?: Covered calls on CLMT are an income strategy run on existing CLMT 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 CLMT implied volatility affect this covered call?: CLMT ATM IV is at 52.20% with IV rank near 32.53%, 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.