CTAS Covered Call Strategy
CTAS (Cintas Corporation), in the Industrials sector, (Specialty Business Services industry), listed on NASDAQ.
Cintas Corporation provides corporate identity uniforms and related business services primarily in the United States, Canada, and Latin America. It operates through Uniform Rental and Facility Services, First Aid and Safety Services, and All Other segments. The company rents and services uniforms and other garments, including flame resistant clothing, mats, mops and shop towels, and other ancillary items; and provides restroom cleaning services and supplies, as well as sells uniforms. It also offers first aid and safety services, and fire protection products and services. The company provides its products and services through its distribution network and local delivery routes, or local representatives to small service and manufacturing companies, as well as major corporations. Cintas Corporation was founded in 1968 and is headquartered in Cincinnati, Ohio.
CTAS (Cintas Corporation) trades in the Industrials sector, specifically Specialty Business Services, with a market capitalization of approximately $65.43B, a trailing P/E of 33.91, a beta of 0.96 versus the broader market, a 52-week range of 161.16-229.24, average daily share volume of 2.2M, a public-listing history dating back to 1983, approximately 47K full-time employees. These structural characteristics shape how CTAS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.96 places CTAS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CTAS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on CTAS?
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 CTAS snapshot
As of May 15, 2026, spot at $169.02, ATM IV 23.99%, IV rank 45.28%, expected move 6.88%. The covered call on CTAS 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 28-day expiry.
Why this covered call structure on CTAS specifically: CTAS IV at 23.99% is mid-range versus its 1-year history, so the credit collected on a CTAS covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 6.88% (roughly $11.62 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CTAS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CTAS should anchor to the underlying notional of $169.02 per share and to the trader's directional view on CTAS stock.
CTAS covered call setup
The CTAS 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 CTAS near $169.02, the first option leg uses a $175.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CTAS chain at a 28-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 CTAS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $169.02 | long |
| Sell 1 | Call | $175.00 | $2.13 |
CTAS covered call risk and reward
- Net Premium / Debit
- -$16,689.50
- Max Profit (per contract)
- $810.50
- Max Loss (per contract)
- -$16,688.50
- Breakeven(s)
- $166.90
- Risk / Reward Ratio
- 0.049
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.
CTAS covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CTAS. 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% | -$16,688.50 |
| $37.38 | -77.9% | -$12,951.48 |
| $74.75 | -55.8% | -$9,214.47 |
| $112.12 | -33.7% | -$5,477.45 |
| $149.49 | -11.6% | -$1,740.44 |
| $186.86 | +10.6% | +$810.50 |
| $224.23 | +32.7% | +$810.50 |
| $261.60 | +54.8% | +$810.50 |
| $298.97 | +76.9% | +$810.50 |
| $336.34 | +99.0% | +$810.50 |
When traders use covered call on CTAS
Covered calls on CTAS are an income strategy run on existing CTAS stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CTAS thesis for this covered call
The market-implied 1-standard-deviation range for CTAS extends from approximately $157.40 on the downside to $180.64 on the upside. A CTAS covered call collects premium on an existing long CTAS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CTAS will breach that level within the expiration window. Current CTAS IV rank near 45.28% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on CTAS should anchor more to the directional view and the expected-move geometry. As a Industrials name, CTAS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CTAS-specific events.
CTAS 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. CTAS positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CTAS alongside the broader basket even when CTAS-specific fundamentals are unchanged. Short-premium structures like a covered call on CTAS carry tail risk when realized volatility exceeds the implied move; review historical CTAS earnings reactions and macro stress periods before sizing. Always rebuild the position from current CTAS chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CTAS?
- A covered call on CTAS is the covered call strategy applied to CTAS (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 CTAS stock trading near $169.02, the strikes shown on this page are snapped to the nearest listed CTAS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CTAS 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 CTAS covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 23.99%), the computed maximum profit is $810.50 per contract and the computed maximum loss is -$16,688.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CTAS covered call?
- The breakeven for the CTAS covered call priced on this page is roughly $166.90 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 CTAS market-implied 1-standard-deviation expected move is approximately 6.88%; 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 CTAS?
- Covered calls on CTAS are an income strategy run on existing CTAS 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 CTAS implied volatility affect this covered call?
- CTAS ATM IV is at 23.99% with IV rank near 45.28%, 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.