How are CNX 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 CNX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 32.00%), the computed maximum profit is $227.50 per contract and the computed maximum loss is -$3,371.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CNX covered call?

The breakeven for the CNX covered call priced on this page is roughly $33.73 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 CNX market-implied 1-standard-deviation expected move is approximately 9.17%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CNX implied volatility affect this covered call?

CNX ATM IV is at 32.00% with IV rank near 31.65%, 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.

CNX Covered Call Strategy

CNX (CNX Resources Corporation), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NYSE.

CNX Resources Corporation operates as an independent company primarily focused on natural gas and midstream activities. Its core business involves the acquisition, exploration, development, and production of natural gas properties, predominantly situated within the Appalachian Basin. The company's operations are structured into two distinct segments: Shale and Coalbed Methane. CNX is a producer and supplier of pipeline-grade natural gas, primarily serving wholesale customers. Its extensive asset portfolio includes significant natural gas extraction rights. Specifically, it holds mineral rights across: Approximately 526,000 net acres in the Marcellus Shale, located in Pennsylvania, West Virginia, and Ohio.

CNX (CNX Resources Corporation) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $4.77B, a trailing P/E of 3.88, a beta of 0.59 versus the broader market, a 52-week range of 27.72-43.62, average daily share volume of 1.9M, a public-listing history dating back to 1999, approximately 458 full-time employees. These structural characteristics shape how CNX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.59 indicates CNX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 3.88 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a covered call on CNX?

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 CNX snapshot

As of June 30, 2026, spot at $34.00, ATM IV 32.00%, IV rank 31.65%, expected move 9.17%. The covered call on CNX 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 CNX specifically: CNX IV at 32.00% is mid-range versus its 1-year history, so the credit collected on a CNX covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 9.17% (roughly $3.12 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 CNX expiries trade a higher absolute premium for lower per-day decay. Position sizing on CNX should anchor to the underlying notional of $34.00 per share and to the trader's directional view on CNX stock.

CNX covered call setup

The CNX 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 CNX near $34.00, the first option leg uses a $36.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CNX 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 CNX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$34.00	long
Sell 1	Call	$36.00	$0.28

CNX covered call risk and reward

Net Premium / Debit: -$3,372.50
Max Profit (per contract): $227.50
Max Loss (per contract): -$3,371.50
Breakeven(s): $33.73
Risk / Reward Ratio: 0.067

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.

CNX covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on CNX. 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%	-$3,371.50
$7.53	-77.9%	-$2,619.85
$15.04	-55.8%	-$1,868.20
$22.56	-33.6%	-$1,116.56
$30.08	-11.5%	-$364.91
$37.59	+10.6%	+$227.50
$45.11	+32.7%	+$227.50
$52.63	+54.8%	+$227.50
$60.14	+76.9%	+$227.50
$67.66	+99.0%	+$227.50

When traders use covered call on CNX

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

CNX thesis for this covered call

The market-implied 1-standard-deviation range for CNX extends from approximately $30.88 on the downside to $37.12 on the upside. A CNX covered call collects premium on an existing long CNX position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CNX will breach that level within the expiration window. Current CNX IV rank near 31.65% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on CNX should anchor more to the directional view and the expected-move geometry. As a Energy name, CNX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CNX-specific events.

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

Frequently asked questions

What is a covered call on CNX?: A covered call on CNX is the covered call strategy applied to CNX (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 CNX stock trading near $34.00, the strikes shown on this page are snapped to the nearest listed CNX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CNX 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 CNX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 32.00%), the computed maximum profit is $227.50 per contract and the computed maximum loss is -$3,371.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CNX covered call?: The breakeven for the CNX covered call priced on this page is roughly $33.73 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 CNX market-implied 1-standard-deviation expected move is approximately 9.17%; 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 CNX?: Covered calls on CNX are an income strategy run on existing CNX 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 CNX implied volatility affect this covered call?: CNX ATM IV is at 32.00% with IV rank near 31.65%, 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.