How are FLNG 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 FLNG covered call priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 30.90%), the computed maximum profit is $179.00 per contract and the computed maximum loss is -$2,520.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FLNG covered call?

The breakeven for the FLNG covered call priced on this page is roughly $25.21 at expiration, derived from the November 13, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The FLNG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FLNG implied volatility affect this covered call?

FLNG ATM IV is at 30.90% with IV rank near 52.42%, 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.

FLNG Covered Call Strategy

FLNG (FLEX LNG Ltd), in the Industrials sector, (Marine Shipping industry), listed on NYSE.

Flex LNG Ltd. is a shipping company focused on the transportation of liquefied natural gas (LNG). Its fleet is comprised of thirteen modern LNG carriers featuring state-of-the-art, two-stroke propulsion systems (MEGI and X-DF). These vessels offer significant improvements in fuel efficiency and a reduced carbon footprint compared to older ship designs.

FLNG (FLEX LNG Ltd) trades in the Industrials sector, specifically Marine Shipping, with a market capitalization of approximately $1.38B, a trailing P/E of 10.71, a beta of 0.16 versus the broader market, a 52-week range of 24.14-33.4, average daily share volume of 401K, a public-listing history dating back to 2019, approximately 9 full-time employees. These structural characteristics shape how FLNG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.16 indicates FLNG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 10.71 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. FLNG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on FLNG?

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.

FLNG snapshot

As of November 13, 2026, spot at $25.51, ATM IV 30.90%, IV rank 52.42%, expected move 8.86%. The covered call on FLNG below is built from the November 13, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this covered call structure on FLNG specifically: FLNG IV at 30.90% is mid-range versus its 1-year history, so the credit collected on a FLNG covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 8.86% (roughly $2.26 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FLNG expiries trade a higher absolute premium for lower per-day decay. Position sizing on FLNG should anchor to the underlying notional of $25.51 per share and to the trader's directional view on FLNG stock.

FLNG covered call setup

The FLNG covered call below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With FLNG at $25.51 on that close, the first option leg uses a $27.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FLNG chain at a 35-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 FLNG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$25.51	long
Sell 1	Call	$27.00	$0.30

FLNG covered call risk and reward

Net Premium / Debit: -$2,521.00
Max Profit (per contract): $179.00
Max Loss (per contract): -$2,520.00
Breakeven(s): $25.21
Risk / Reward Ratio: 0.071

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.

FLNG covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on FLNG. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$2,520.00
$5.65	-77.9%	-$1,956.07
$11.29	-55.7%	-$1,392.14
$16.93	-33.6%	-$828.21
$22.57	-11.5%	-$264.28
$28.21	+10.6%	+$179.00
$33.85	+32.7%	+$179.00
$39.49	+54.8%	+$179.00
$45.12	+76.9%	+$179.00
$50.76	+99.0%	+$179.00

When traders use covered call on FLNG

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

FLNG thesis for this covered call

The market-implied 1-standard-deviation range for FLNG extends from approximately $23.25 on the downside to $27.77 on the upside. A FLNG covered call collects premium on an existing long FLNG position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether FLNG will breach that level within the expiration window. Current FLNG IV rank near 52.42% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on FLNG should anchor more to the directional view and the expected-move geometry. As a Industrials name, FLNG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FLNG-specific events.

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

Frequently asked questions

What is a covered call on FLNG?: A covered call on FLNG is the covered call strategy applied to FLNG (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 FLNG stock at $25.51 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed FLNG chain strike and the premiums come straight from that session's bid/ask midpoint.
How are FLNG 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 FLNG covered call priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 30.90%), the computed maximum profit is $179.00 per contract and the computed maximum loss is -$2,520.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FLNG covered call?: The breakeven for the FLNG covered call priced on this page is roughly $25.21 at expiration, derived from the November 13, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The FLNG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.86%; 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 FLNG?: Covered calls on FLNG are an income strategy run on existing FLNG 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 FLNG implied volatility affect this covered call?: FLNG ATM IV is at 30.90% with IV rank near 52.42%, 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.