How are GEO 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 GEO covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 55.20%), the computed maximum profit is $263.00 per contract and the computed maximum loss is -$2,836.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GEO covered call?

The breakeven for the GEO covered call priced on this page is roughly $28.37 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 GEO market-implied 1-standard-deviation expected move is approximately 15.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GEO implied volatility affect this covered call?

GEO ATM IV is at 55.20% with IV rank near 40.95%, 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.

GEO Covered Call Strategy

GEO (The GEO Group, Inc.), in the Industrials sector, (Security & Protection Services industry), listed on NYSE.

The GEO Group, Inc. is dedicated to the operation, leasing, and ownership of secure correctional centers, administrative processing hubs, and community reentry facilities situated in the United States, Australia, and South Africa. The company's operations are segmented into four main areas: U.S. Secure Services, Electronic Monitoring and Supervision Services, Reentry Services, and International Services. GEO Group provides a comprehensive suite of services. This includes offering counseling, educational programs, and treatment for alcohol and drug dependency within its various locations. It also leverages compliance technologies for monitoring services and implements empirically supported supervision and rehabilitation programs for individuals on parole, probation, or awaiting trial in a community setting.

GEO (The GEO Group, Inc.) trades in the Industrials sector, specifically Security & Protection Services, with a market capitalization of approximately $4.06B, a trailing P/E of 14.74, a beta of 0.83 versus the broader market, a 52-week range of 12.51-30.58, average daily share volume of 2.0M, a public-listing history dating back to 1994, approximately 17K full-time employees. These structural characteristics shape how GEO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.83 places GEO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a covered call on GEO?

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 GEO snapshot

As of June 29, 2026, spot at $29.32, ATM IV 55.20%, IV rank 40.95%, expected move 15.83%. The covered call on GEO 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 18-day expiry.

Why this covered call structure on GEO specifically: GEO IV at 55.20% is mid-range versus its 1-year history, so the credit collected on a GEO covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 15.83% (roughly $4.64 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GEO expiries trade a higher absolute premium for lower per-day decay. Position sizing on GEO should anchor to the underlying notional of $29.32 per share and to the trader's directional view on GEO stock.

GEO covered call setup

The GEO 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 GEO near $29.32, the first option leg uses a $31.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GEO chain at a 18-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 GEO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$29.32	long
Sell 1	Call	$31.00	$0.95

GEO covered call risk and reward

Net Premium / Debit: -$2,837.00
Max Profit (per contract): $263.00
Max Loss (per contract): -$2,836.00
Breakeven(s): $28.37
Risk / Reward Ratio: 0.093

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.

GEO covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on GEO. 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%	-$2,836.00
$6.49	-77.9%	-$2,187.83
$12.97	-55.8%	-$1,539.66
$19.46	-33.6%	-$891.49
$25.94	-11.5%	-$243.32
$32.42	+10.6%	+$263.00
$38.90	+32.7%	+$263.00
$45.38	+54.8%	+$263.00
$51.86	+76.9%	+$263.00
$58.35	+99.0%	+$263.00

When traders use covered call on GEO

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

GEO thesis for this covered call

The market-implied 1-standard-deviation range for GEO extends from approximately $24.68 on the downside to $33.96 on the upside. A GEO covered call collects premium on an existing long GEO position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether GEO will breach that level within the expiration window. Current GEO IV rank near 40.95% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on GEO should anchor more to the directional view and the expected-move geometry. As a Industrials name, GEO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GEO-specific events.

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

Frequently asked questions

What is a covered call on GEO?: A covered call on GEO is the covered call strategy applied to GEO (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 GEO stock trading near $29.32, the strikes shown on this page are snapped to the nearest listed GEO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GEO 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 GEO covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 55.20%), the computed maximum profit is $263.00 per contract and the computed maximum loss is -$2,836.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GEO covered call?: The breakeven for the GEO covered call priced on this page is roughly $28.37 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 GEO market-implied 1-standard-deviation expected move is approximately 15.83%; 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 GEO?: Covered calls on GEO are an income strategy run on existing GEO 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 GEO implied volatility affect this covered call?: GEO ATM IV is at 55.20% with IV rank near 40.95%, 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.