GOOD Covered Call Strategy
GOOD (Gladstone Commercial Corporation), in the Real Estate sector, (REIT - Diversified industry), listed on NASDAQ.
Gladstone Commercial Corporation functions as a real estate investment trust (REIT), primarily focused on acquiring, holding, and managing industrial and office properties under net leases across the United States. The company demonstrates a strong history of investor payouts, having delivered 189 continuous monthly cash dividends to its common stockholders up to September 2020. This followed an initial period where five consecutive quarterly cash distributions were made. Additionally, preferred stockholders have experienced uninterrupted payments: 53 consecutive monthly distributions for its Series D Preferred Stock, 12 for its Series E, and 3 for its Series F. Since its inception in 2003, Gladstone Commercial has consistently met its distribution commitments, never missing, decreasing, or delaying a payment.
GOOD (Gladstone Commercial Corporation) trades in the Real Estate sector, specifically REIT - Diversified, with a market capitalization of approximately $629.8M, a trailing P/E of 24.81, a beta of 1.07 versus the broader market, a 52-week range of 10.33-13.47, average daily share volume of 472K, a public-listing history dating back to 2003, approximately 75 full-time employees. These structural characteristics shape how GOOD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.07 places GOOD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. GOOD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on GOOD?
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.
GOOD snapshot
As of August 14, 2026, spot at $12.96, ATM IV 297.40%, IV rank 60.89%, expected move 85.26%. The covered call on GOOD below is built from the 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 GOOD specifically: GOOD IV at 297.40% is mid-range versus its 1-year history, so the credit collected on a GOOD covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 85.26% (roughly $11.05 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 GOOD expiries trade a higher absolute premium for lower per-day decay. Position sizing on GOOD should anchor to the underlying notional of $12.96 per share and to the trader's directional view on GOOD stock.
GOOD covered call setup
The GOOD 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 GOOD at $12.96 on that close, the first option leg uses a $13.61 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GOOD 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 GOOD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $12.96 | long |
| Sell 1 | Call | $13.61 | N/A |
GOOD covered call 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
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.
GOOD covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on GOOD. 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 covered call on GOOD
Covered calls on GOOD are an income strategy run on existing GOOD stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
GOOD thesis for this covered call
The market-implied 1-standard-deviation range for GOOD extends from approximately $1.91 on the downside to $24.01 on the upside. A GOOD covered call collects premium on an existing long GOOD position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether GOOD will breach that level within the expiration window. Current GOOD IV rank near 60.89% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on GOOD should anchor more to the directional view and the expected-move geometry. As a Real Estate name, GOOD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GOOD-specific events.
GOOD 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. GOOD positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GOOD alongside the broader basket even when GOOD-specific fundamentals are unchanged. Short-premium structures like a covered call on GOOD carry tail risk when realized volatility exceeds the implied move; review historical GOOD earnings reactions and macro stress periods before sizing. Always rebuild the position from current GOOD chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on GOOD?
- A covered call on GOOD is the covered call strategy applied to GOOD (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 GOOD stock at $12.96 on the most recent close, the strikes shown on this page are snapped to the nearest listed GOOD chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are GOOD 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 GOOD covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 297.40%), 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 GOOD covered call?
- The breakeven for the GOOD covered call priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 GOOD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 85.26%; 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 GOOD?
- Covered calls on GOOD are an income strategy run on existing GOOD 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 GOOD implied volatility affect this covered call?
- GOOD ATM IV is at 297.40% with IV rank near 60.89%, 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.