How are CVEO 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 CVEO covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 55.30%), the computed maximum profit is $346.00 per contract and the computed maximum loss is -$3,253.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CVEO covered call?

The breakeven for the CVEO covered call priced on this page is roughly $32.54 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 CVEO market-implied 1-standard-deviation expected move is approximately 15.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CVEO implied volatility affect this covered call?

CVEO ATM IV is at 55.30% with IV rank near 13.73%, 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.

CVEO Covered Call Strategy

CVEO (Civeo Corporation), in the Industrials sector, (Specialty Business Services industry), listed on NYSE.

Civeo Corporation provides hospitality services to the natural resource industry in Canada, Australia, and the United States. The company develops lodges and villages; and mobile accommodations, including modular, skid-mounted accommodation, and central facilities that provide long-term and temporary work force accommodations. It also offers food, housekeeping, and maintenance services, as well as laundry, facility management and maintenance, water and wastewater treatment, power generation, communication systems, security, and logistics services; and camp management services. In addition, the company provides development activities for workforce accommodation facilities, including site selection, permitting, engineering and design, manufacturing management, and site construction services, as well as catering and managed services. It owns and operates 27 lodges and villages with approximately 28,000 rooms; and a fleet of mobile accommodation assets. The company serves oil, mining, engineering, and oilfield and mining service companies.

CVEO (Civeo Corporation) trades in the Industrials sector, specifically Specialty Business Services, with a market capitalization of approximately $364.1M, a beta of 0.73 versus the broader market, a 52-week range of 19.75-34.8, average daily share volume of 69K, a public-listing history dating back to 2014, approximately 3K full-time employees. These structural characteristics shape how CVEO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.73 places CVEO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CVEO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on CVEO?

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 CVEO snapshot

As of May 15, 2026, spot at $34.13, ATM IV 55.30%, IV rank 13.73%, expected move 15.85%. The covered call on CVEO 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 CVEO specifically: CVEO IV at 55.30% is on the cheap side of its 1-year range, which means a premium-selling CVEO covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 15.85% (roughly $5.41 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 CVEO expiries trade a higher absolute premium for lower per-day decay. Position sizing on CVEO should anchor to the underlying notional of $34.13 per share and to the trader's directional view on CVEO stock.

CVEO covered call setup

The CVEO 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 CVEO near $34.13, 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 CVEO 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 CVEO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$34.13	long
Sell 1	Call	$36.00	$1.59

CVEO covered call risk and reward

Net Premium / Debit: -$3,254.00
Max Profit (per contract): $346.00
Max Loss (per contract): -$3,253.00
Breakeven(s): $32.54
Risk / Reward Ratio: 0.106

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.

CVEO covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on CVEO. 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%	-$3,253.00
$7.56	-77.9%	-$2,498.48
$15.10	-55.8%	-$1,743.95
$22.65	-33.6%	-$989.43
$30.19	-11.5%	-$234.91
$37.74	+10.6%	+$346.00
$45.28	+32.7%	+$346.00
$52.83	+54.8%	+$346.00
$60.37	+76.9%	+$346.00
$67.92	+99.0%	+$346.00

When traders use covered call on CVEO

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

CVEO thesis for this covered call

The market-implied 1-standard-deviation range for CVEO extends from approximately $28.72 on the downside to $39.54 on the upside. A CVEO covered call collects premium on an existing long CVEO position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CVEO will breach that level within the expiration window. Current CVEO IV rank near 13.73% 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 CVEO at 55.30%. As a Industrials name, CVEO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CVEO-specific events.

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

Frequently asked questions

What is a covered call on CVEO?: A covered call on CVEO is the covered call strategy applied to CVEO (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 CVEO stock trading near $34.13, the strikes shown on this page are snapped to the nearest listed CVEO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CVEO 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 CVEO covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 55.30%), the computed maximum profit is $346.00 per contract and the computed maximum loss is -$3,253.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CVEO covered call?: The breakeven for the CVEO covered call priced on this page is roughly $32.54 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 CVEO market-implied 1-standard-deviation expected move is approximately 15.85%; 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 CVEO?: Covered calls on CVEO are an income strategy run on existing CVEO 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 CVEO implied volatility affect this covered call?: CVEO ATM IV is at 55.30% with IV rank near 13.73%, 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.