CVLG Straddle 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 straddle on CVLG?
A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.
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 straddle 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 straddle structure on CVLG specifically: CVLG IV at 37.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a CVLG straddle, 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 straddle setup
The CVLG straddle 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 $34.71 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 1 | Call | $34.71 | N/A |
| Buy 1 | Put | $34.71 | N/A |
CVLG straddle 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
Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.
CVLG straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle 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 straddle on CVLG
Straddles on CVLG are pure-volatility plays that profit from large moves in either direction; traders typically buy CVLG straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
CVLG thesis for this straddle
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 long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. 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 straddle positions are structurally neutral / high-volatility (long premium); 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. Always rebuild the position from current CVLG chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on CVLG?
- A straddle on CVLG is the straddle strategy applied to CVLG (stock). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. 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 straddle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the CVLG straddle 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 straddle?
- The breakeven for the CVLG straddle 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 straddle on CVLG?
- Straddles on CVLG are pure-volatility plays that profit from large moves in either direction; traders typically buy CVLG straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
- How does current CVLG implied volatility affect this straddle?
- 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.