CVLG Covered Call Strategy
CVLG (Covenant Logistics Group, Inc.), in the Industrials sector, (Trucking industry), listed on NYSE.
Covenant Logistics Group, Inc., together with its subsidiaries, provides transportation and logistics services in the United States. It operates through four segments: Expedited, Dedicated, Managed Freight, and Warehousing. The Expedited segment primarily provides truckload services with high service freight and delivery standards, such as 1,000 miles in 22 hours or 15-minute delivery windows. The Dedicated segment provides customers with committed truckload capacity over contracted periods using equipment either owned or leased by the company. The Managed Freight segment offers brokerage services, including logistics capacity by outsourcing the carriage of customers' freight to third parties; and transport management services, such as logistics services on a contractual basis to customers who prefer to outsource their logistics needs. The Warehousing segment provides day-to-day warehouse management services to customers.
CVLG (Covenant Logistics Group, Inc.) trades in the Industrials sector, specifically Trucking, with a market capitalization of approximately $803.8M, a trailing P/E of 157.26, a beta of 1.29 versus the broader market, a 52-week range of 18-35.91, average daily share volume of 159K, a public-listing history dating back to 1994, approximately 3K full-time employees. These structural characteristics shape how CVLG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.29 places CVLG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 157.26 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. CVLG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on CVLG?
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 CVLG snapshot
As of May 15, 2026, spot at $34.71, ATM IV 37.10%, IV rank 18.18%, expected move 10.64%. The covered call on CVLG 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 CVLG specifically: CVLG IV at 37.10% is on the cheap side of its 1-year range, which means a premium-selling CVLG covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 10.64% (roughly $3.69 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 CVLG expiries trade a higher absolute premium for lower per-day decay. Position sizing on CVLG should anchor to the underlying notional of $34.71 per share and to the trader's directional view on CVLG stock.
CVLG covered call setup
The CVLG 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 CVLG near $34.71, the first option leg uses a $36.45 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CVLG 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 CVLG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $34.71 | long |
| Sell 1 | Call | $36.45 | N/A |
CVLG covered 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 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.
CVLG covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CVLG. 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 covered call on CVLG
Covered calls on CVLG are an income strategy run on existing CVLG stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CVLG thesis for this covered call
The market-implied 1-standard-deviation range for CVLG extends from approximately $31.02 on the downside to $38.40 on the upside. A CVLG covered call collects premium on an existing long CVLG position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CVLG will breach that level within the expiration window. Current CVLG IV rank near 18.18% 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 CVLG at 37.10%. As a Industrials name, CVLG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CVLG-specific events.
CVLG 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. CVLG positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CVLG alongside the broader basket even when CVLG-specific fundamentals are unchanged. Short-premium structures like a covered call on CVLG carry tail risk when realized volatility exceeds the implied move; review historical CVLG earnings reactions and macro stress periods before sizing. Always rebuild the position from current CVLG chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CVLG?
- A covered call on CVLG is the covered call strategy applied to CVLG (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 CVLG stock trading near $34.71, the strikes shown on this page are snapped to the nearest listed CVLG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CVLG 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 CVLG covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 37.10%), 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 CVLG covered call?
- The breakeven for the CVLG covered 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 CVLG market-implied 1-standard-deviation expected move is approximately 10.64%; 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 CVLG?
- Covered calls on CVLG are an income strategy run on existing CVLG 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 CVLG implied volatility affect this covered call?
- CVLG ATM IV is at 37.10% with IV rank near 18.18%, 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.