CTRE Long Call Strategy
CTRE (CareTrust REIT, Inc.), in the Real Estate sector, (REIT - Healthcare Facilities industry), listed on NYSE.
CareTrust REIT, Inc. is a self-administered, publicly-traded real estate investment trust engaged in the ownership, acquisition, development and leasing of skilled nursing, seniors housing and other healthcare-related properties. With a nationwide portfolio of long-term net-leased properties, and a growing portfolio of quality operators leasing them, CareTrust REIT is pursuing both external and organic growth opportunities across the United States.
CTRE (CareTrust REIT, Inc.) trades in the Real Estate sector, specifically REIT - Healthcare Facilities, with a market capitalization of approximately $10.03B, a trailing P/E of 28.26, a beta of 0.79 versus the broader market, a 52-week range of 27.81-42.45, average daily share volume of 2.8M, a public-listing history dating back to 2014, approximately 21 full-time employees. These structural characteristics shape how CTRE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.79 places CTRE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CTRE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long call on CTRE?
A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration.
Current CTRE snapshot
As of May 15, 2026, spot at $41.13, ATM IV 24.00%, IV rank 7.94%, expected move 6.88%. The long call on CTRE 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 long call structure on CTRE specifically: CTRE IV at 24.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a CTRE long call, with a market-implied 1-standard-deviation move of approximately 6.88% (roughly $2.83 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 CTRE expiries trade a higher absolute premium for lower per-day decay. Position sizing on CTRE should anchor to the underlying notional of $41.13 per share and to the trader's directional view on CTRE stock.
CTRE long call setup
The CTRE long 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 CTRE near $41.13, the first option leg uses a $41.13 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CTRE 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 CTRE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $41.13 | N/A |
CTRE long call risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium.
CTRE long call payoff curve
Modeled P&L at expiration across a range of underlying prices for the long call on CTRE. 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.
When traders use long call on CTRE
Long calls on CTRE express a bullish thesis with defined risk; traders use them ahead of CTRE catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
CTRE thesis for this long call
The market-implied 1-standard-deviation range for CTRE extends from approximately $38.30 on the downside to $43.96 on the upside. A CTRE long call expresses a directional view that the underlying closes above the strike plus premium at expiration, ideally with implied volatility holding or expanding to preserve extrinsic value through the hold period. Current CTRE IV rank near 7.94% 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 CTRE at 24.00%. As a Real Estate name, CTRE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CTRE-specific events.
CTRE long call positions are structurally 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. CTRE positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CTRE alongside the broader basket even when CTRE-specific fundamentals are unchanged. Long-premium structures like a long call on CTRE are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current CTRE chain quotes before placing a trade.
Frequently asked questions
- What is a long call on CTRE?
- A long call on CTRE is the long call strategy applied to CTRE (stock). The strategy is structurally bullish: A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration. With CTRE stock trading near $41.13, the strikes shown on this page are snapped to the nearest listed CTRE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CTRE long call max profit and max loss calculated?
- Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium. For the CTRE long call priced from the end-of-day chain at a 30-day expiry (ATM IV 24.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CTRE long call?
- The breakeven for the CTRE long call priced on this page is no defined breakeven on the modeled curve 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 CTRE 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 long call on CTRE?
- Long calls on CTRE express a bullish thesis with defined risk; traders use them ahead of CTRE catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
- How does current CTRE implied volatility affect this long call?
- CTRE ATM IV is at 24.00% with IV rank near 7.94%, 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.