How are CTRA 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 CTRA covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 37.28%), the computed maximum profit is $283.00 per contract and the computed maximum loss is -$3,016.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CTRA covered call?

The breakeven for the CTRA covered call priced on this page is roughly $30.17 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 CTRA market-implied 1-standard-deviation expected move is approximately 10.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CTRA implied volatility affect this covered call?

CTRA ATM IV is at 37.28% with IV rank near 58.26%, 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.

CTRA Covered Call Strategy

CTRA (Coterra Energy Inc.), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NYSE.

Coterra Energy Inc., an independent oil and gas company, engages in the development, exploration and production of oil, natural gas, and natural gas liquids in the United States. It primarily focuses on the Marcellus Shale with approximately 177,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania. The company also holds Permian Basin properties with approximately 306,000 net acres; and Anadarko Basin properties located in Oklahoma with approximately 182,000 net acres. In addition, it operates natural gas and saltwater disposal gathering systems in Texas. The company sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities. As of December 31, 2021, it had proved reserves of approximately 2,892,582 thousand barrels of oil equivalent, which include 189,429 thousand barrels of oil and other liquid hydrocarbons, 14,895 billion cubic feet of natural gas, and 220,615 thousand barrels of natural gas liquids.

CTRA (Coterra Energy Inc.) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $24.72B, a trailing P/E of 14.82, a beta of 0.30 versus the broader market, a 52-week range of 22.33-36.88, average daily share volume of 9.0M, a public-listing history dating back to 1990, approximately 915 full-time employees. These structural characteristics shape how CTRA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.30 indicates CTRA has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. CTRA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on CTRA?

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 CTRA snapshot

As of May 15, 2026, spot at $31.25, ATM IV 37.28%, IV rank 58.26%, expected move 10.69%. The covered call on CTRA 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 CTRA specifically: CTRA IV at 37.28% is mid-range versus its 1-year history, so the credit collected on a CTRA covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 10.69% (roughly $3.34 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 CTRA expiries trade a higher absolute premium for lower per-day decay. Position sizing on CTRA should anchor to the underlying notional of $31.25 per share and to the trader's directional view on CTRA stock.

CTRA covered call setup

The CTRA 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 CTRA near $31.25, 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 CTRA 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 CTRA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$31.25	long
Sell 1	Call	$33.00	$1.08

CTRA covered call risk and reward

Net Premium / Debit: -$3,017.00
Max Profit (per contract): $283.00
Max Loss (per contract): -$3,016.00
Breakeven(s): $30.17
Risk / Reward Ratio: 0.094

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.

CTRA covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on CTRA. 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%	-$3,016.00
$6.92	-77.9%	-$2,325.16
$13.83	-55.8%	-$1,634.31
$20.74	-33.6%	-$943.47
$27.64	-11.5%	-$252.62
$34.55	+10.6%	+$283.00
$41.46	+32.7%	+$283.00
$48.37	+54.8%	+$283.00
$55.28	+76.9%	+$283.00
$62.19	+99.0%	+$283.00

When traders use covered call on CTRA

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

CTRA thesis for this covered call

The market-implied 1-standard-deviation range for CTRA extends from approximately $27.91 on the downside to $34.59 on the upside. A CTRA covered call collects premium on an existing long CTRA position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CTRA will breach that level within the expiration window. Current CTRA IV rank near 58.26% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on CTRA should anchor more to the directional view and the expected-move geometry. As a Energy name, CTRA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CTRA-specific events.

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

Frequently asked questions

What is a covered call on CTRA?: A covered call on CTRA is the covered call strategy applied to CTRA (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 CTRA stock trading near $31.25, the strikes shown on this page are snapped to the nearest listed CTRA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CTRA 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 CTRA covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 37.28%), the computed maximum profit is $283.00 per contract and the computed maximum loss is -$3,016.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CTRA covered call?: The breakeven for the CTRA covered call priced on this page is roughly $30.17 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 CTRA market-implied 1-standard-deviation expected move is approximately 10.69%; 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 CTRA?: Covered calls on CTRA are an income strategy run on existing CTRA 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 CTRA implied volatility affect this covered call?: CTRA ATM IV is at 37.28% with IV rank near 58.26%, 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.