How are EOG 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 EOG covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 30.99%), the computed maximum profit is $912.50 per contract and the computed maximum loss is -$13,786.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a EOG covered call?

The breakeven for the EOG covered call priced on this page is roughly $137.88 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 EOG market-implied 1-standard-deviation expected move is approximately 8.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current EOG implied volatility affect this covered call?

EOG ATM IV is at 30.99% with IV rank near 52.83%, 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.

EOG Covered Call Strategy

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

EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, and natural gas and natural gas liquids. Its principal producing areas are in New Mexico and Texas in the United States; and the Republic of Trinidad and Tobago. As of December 31, 2021, it had total estimated net proved reserves of 3,747 million barrels of oil equivalent, including 1,548 million barrels (MMBbl) of crude oil and condensate reserves; 829 MMBbl of natural gas liquid reserves; and 8,222 billion cubic feet of natural gas reserves. The company was formerly known as Enron Oil & Gas Company. EOG Resources, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.

EOG (EOG Resources, Inc.) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $71.87B, a trailing P/E of 13.06, a beta of 0.28 versus the broader market, a 52-week range of 101.59-151.87, average daily share volume of 5.0M, a public-listing history dating back to 1989, approximately 3K full-time employees. These structural characteristics shape how EOG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.28 indicates EOG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. EOG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on EOG?

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 EOG snapshot

As of May 15, 2026, spot at $140.15, ATM IV 30.99%, IV rank 52.83%, expected move 8.88%. The covered call on EOG 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 EOG specifically: EOG IV at 30.99% is mid-range versus its 1-year history, so the credit collected on a EOG covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 8.88% (roughly $12.45 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 EOG expiries trade a higher absolute premium for lower per-day decay. Position sizing on EOG should anchor to the underlying notional of $140.15 per share and to the trader's directional view on EOG stock.

EOG covered call setup

The EOG 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 EOG near $140.15, the first option leg uses a $147.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EOG 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 EOG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$140.15	long
Sell 1	Call	$147.00	$2.28

EOG covered call risk and reward

Net Premium / Debit: -$13,787.50
Max Profit (per contract): $912.50
Max Loss (per contract): -$13,786.50
Breakeven(s): $137.88
Risk / Reward Ratio: 0.066

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.

EOG covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on EOG. 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%	-$13,786.50
$31.00	-77.9%	-$10,687.82
$61.98	-55.8%	-$7,589.13
$92.97	-33.7%	-$4,490.45
$123.96	-11.6%	-$1,391.77
$154.94	+10.6%	+$912.50
$185.93	+32.7%	+$912.50
$216.92	+54.8%	+$912.50
$247.90	+76.9%	+$912.50
$278.89	+99.0%	+$912.50

When traders use covered call on EOG

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

EOG thesis for this covered call

The market-implied 1-standard-deviation range for EOG extends from approximately $127.70 on the downside to $152.60 on the upside. A EOG covered call collects premium on an existing long EOG position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether EOG will breach that level within the expiration window. Current EOG IV rank near 52.83% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on EOG should anchor more to the directional view and the expected-move geometry. As a Energy name, EOG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EOG-specific events.

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

Frequently asked questions

What is a covered call on EOG?: A covered call on EOG is the covered call strategy applied to EOG (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 EOG stock trading near $140.15, the strikes shown on this page are snapped to the nearest listed EOG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are EOG 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 EOG covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 30.99%), the computed maximum profit is $912.50 per contract and the computed maximum loss is -$13,786.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a EOG covered call?: The breakeven for the EOG covered call priced on this page is roughly $137.88 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 EOG market-implied 1-standard-deviation expected move is approximately 8.88%; 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 EOG?: Covered calls on EOG are an income strategy run on existing EOG 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 EOG implied volatility affect this covered call?: EOG ATM IV is at 30.99% with IV rank near 52.83%, 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.