How are COMP 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 COMP covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 64.60%), the computed maximum profit is $65.50 per contract and the computed maximum loss is -$733.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a COMP covered call?

The breakeven for the COMP covered call priced on this page is roughly $7.35 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 COMP market-implied 1-standard-deviation expected move is approximately 18.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current COMP implied volatility affect this covered call?

COMP ATM IV is at 64.60% with IV rank near 16.50%, 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.

COMP Covered Call Strategy

COMP (Compass, Inc.), in the Technology sector, (Software - Application industry), listed on NYSE.

Compass, Inc. provides real estate brokerage services in the United States. It operates a cloud-based platform that provides an integrated suite of software for customer relationship management, marketing, client service, operations, and other functionality, as well as brokerage and adjacent services in the real estate industry. The company offers mobile apps that allow agents to manage their business anywhere as well as designs consumer-grade interfaces, an automated workflows for agent-client interactions. The company was formerly known as Urban Compass, Inc. and changed its name to Compass, Inc. in January 2021.Compass, Inc. was founded in 2012 and is headquartered in New York, New York.

COMP (Compass, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $4.94B, a trailing P/E of 419.93, a beta of 2.46 versus the broader market, a 52-week range of 5.655-13.955, average daily share volume of 15.5M, a public-listing history dating back to 2021, approximately 3K full-time employees. These structural characteristics shape how COMP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.46 indicates COMP has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 419.93 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.

What is a covered call on COMP?

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 COMP snapshot

As of May 15, 2026, spot at $7.92, ATM IV 64.60%, IV rank 16.50%, expected move 18.52%. The covered call on COMP 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 COMP specifically: COMP IV at 64.60% is on the cheap side of its 1-year range, which means a premium-selling COMP covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 18.52% (roughly $1.47 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 COMP expiries trade a higher absolute premium for lower per-day decay. Position sizing on COMP should anchor to the underlying notional of $7.92 per share and to the trader's directional view on COMP stock.

COMP covered call setup

The COMP 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 COMP near $7.92, the first option leg uses a $8.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed COMP 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 COMP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$7.92	long
Sell 1	Call	$8.00	$0.58

COMP covered call risk and reward

Net Premium / Debit: -$734.50
Max Profit (per contract): $65.50
Max Loss (per contract): -$733.50
Breakeven(s): $7.35
Risk / Reward Ratio: 0.089

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.

COMP covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on COMP. 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	-99.9%	-$733.50
$1.76	-77.8%	-$558.49
$3.51	-55.7%	-$383.49
$5.26	-33.6%	-$208.48
$7.01	-11.5%	-$33.48
$8.76	+10.6%	+$65.50
$10.51	+32.7%	+$65.50
$12.26	+54.8%	+$65.50
$14.01	+76.9%	+$65.50
$15.76	+99.0%	+$65.50

When traders use covered call on COMP

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

COMP thesis for this covered call

The market-implied 1-standard-deviation range for COMP extends from approximately $6.45 on the downside to $9.39 on the upside. A COMP covered call collects premium on an existing long COMP position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether COMP will breach that level within the expiration window. Current COMP IV rank near 16.50% 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 COMP at 64.60%. As a Technology name, COMP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to COMP-specific events.

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

Frequently asked questions

What is a covered call on COMP?: A covered call on COMP is the covered call strategy applied to COMP (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 COMP stock trading near $7.92, the strikes shown on this page are snapped to the nearest listed COMP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are COMP 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 COMP covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 64.60%), the computed maximum profit is $65.50 per contract and the computed maximum loss is -$733.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a COMP covered call?: The breakeven for the COMP covered call priced on this page is roughly $7.35 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 COMP market-implied 1-standard-deviation expected move is approximately 18.52%; 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 COMP?: Covered calls on COMP are an income strategy run on existing COMP 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 COMP implied volatility affect this covered call?: COMP ATM IV is at 64.60% with IV rank near 16.50%, 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.