How are EXP 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 EXP covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 43.50%), the computed maximum profit is $1,392.00 per contract and the computed maximum loss is -$18,607.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a EXP covered call?

The breakeven for the EXP covered call priced on this page is roughly $186.08 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 EXP market-implied 1-standard-deviation expected move is approximately 12.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current EXP implied volatility affect this covered call?

EXP ATM IV is at 43.50% with IV rank near 92.54%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

EXP Covered Call Strategy

EXP (Eagle Materials Inc.), in the Basic Materials sector, (Construction Materials industry), listed on NYSE.

Eagle Materials Inc., through its subsidiaries, produces and supplies heavy construction materials and light building materials in the United States. It operates through Cement, Concrete and Aggregates, Gypsum Wallboard, and Recycled Paperboard segments. The company engages in the mining of limestone for the manufacture, production, distribution, and sale of Portland cement; grinding and sale of slag; and mining of gypsum for the manufacture and sale of gypsum wallboards used to finish the interior walls and ceilings in residential, commercial, and industrial structures. It also manufactures and sells recycled paperboard to gypsum wallboard industry and other paperboard converters, as well as containerboard and lightweight packaging grades. In addition, the company engages in the sale of ready-mix concrete; and mining, extracting, production, and sale of aggregates, including crushed stones, sand, and gravel. Its products are used in commercial and residential construction; public construction projects; and projects to build, expand, and repair roads and highways.

EXP (Eagle Materials Inc.) trades in the Basic Materials sector, specifically Construction Materials, with a market capitalization of approximately $6.27B, a trailing P/E of 14.95, a beta of 1.38 versus the broader market, a 52-week range of 171.99-243.64, average daily share volume of 426K, a public-listing history dating back to 1994, approximately 3K full-time employees. These structural characteristics shape how EXP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.38 indicates EXP has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. EXP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on EXP?

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 EXP snapshot

As of May 15, 2026, spot at $194.13, ATM IV 43.50%, IV rank 92.54%, expected move 12.47%. The covered call on EXP 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 EXP specifically: EXP IV at 43.50% is rich versus its 1-year range, which favors premium-selling structures like a EXP covered call, with a market-implied 1-standard-deviation move of approximately 12.47% (roughly $24.21 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 EXP expiries trade a higher absolute premium for lower per-day decay. Position sizing on EXP should anchor to the underlying notional of $194.13 per share and to the trader's directional view on EXP stock.

EXP covered call setup

The EXP 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 EXP near $194.13, the first option leg uses a $200.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EXP 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 EXP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$194.13	long
Sell 1	Call	$200.00	$8.05

EXP covered call risk and reward

Net Premium / Debit: -$18,608.00
Max Profit (per contract): $1,392.00
Max Loss (per contract): -$18,607.00
Breakeven(s): $186.08
Risk / Reward Ratio: 0.075

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.

EXP covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on EXP. 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%	-$18,607.00
$42.93	-77.9%	-$14,314.79
$85.85	-55.8%	-$10,022.58
$128.78	-33.7%	-$5,730.37
$171.70	-11.6%	-$1,438.16
$214.62	+10.6%	+$1,392.00
$257.54	+32.7%	+$1,392.00
$300.46	+54.8%	+$1,392.00
$343.39	+76.9%	+$1,392.00
$386.31	+99.0%	+$1,392.00

When traders use covered call on EXP

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

EXP thesis for this covered call

The market-implied 1-standard-deviation range for EXP extends from approximately $169.92 on the downside to $218.34 on the upside. A EXP covered call collects premium on an existing long EXP position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether EXP will breach that level within the expiration window. Current EXP IV rank near 92.54% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on EXP at 43.50%. As a Basic Materials name, EXP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EXP-specific events.

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

Frequently asked questions

What is a covered call on EXP?: A covered call on EXP is the covered call strategy applied to EXP (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 EXP stock trading near $194.13, the strikes shown on this page are snapped to the nearest listed EXP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are EXP 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 EXP covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 43.50%), the computed maximum profit is $1,392.00 per contract and the computed maximum loss is -$18,607.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a EXP covered call?: The breakeven for the EXP covered call priced on this page is roughly $186.08 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 EXP market-implied 1-standard-deviation expected move is approximately 12.47%; 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 EXP?: Covered calls on EXP are an income strategy run on existing EXP 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 EXP implied volatility affect this covered call?: EXP ATM IV is at 43.50% with IV rank near 92.54%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.