GOOD Covered Call Strategy
GOOD (Gladstone Commercial Corporation), in the Real Estate sector, (REIT - Diversified industry), listed on NASDAQ.
Gladstone Commercial Corporation is a real estate investment trust focused on acquiring, owning, and operating net leased industrial and office properties across the United States. Including payments through September 2020, Gladstone Commercial has paid 189 consecutive monthly cash distributions on its common stock. Prior to paying distributions on a monthly basis, Gladstone Commercial paid five consecutive quarterly cash distributions. The company has also paid 53 consecutive monthly cash distributions on its Series D Preferred Stock, 12 consecutive monthly cash distributions on its Series E Preferred Stock and three consecutive monthly cash distributions on its Series F Preferred Stock. Gladstone Commercial has never skipped, reduced or deferred a distribution since its inception in 2003.
GOOD (Gladstone Commercial Corporation) trades in the Real Estate sector, specifically REIT - Diversified, with a market capitalization of approximately $600.7M, a trailing P/E of 27.73, a beta of 1.08 versus the broader market, a 52-week range of 10.33-15.03, average daily share volume of 461K, a public-listing history dating back to 2003, approximately 69 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 1.08 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.
Current GOOD snapshot
As of May 15, 2026, spot at $12.30, ATM IV 63.40%, IV rank 14.14%, expected move 5.49%. The covered call on GOOD 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 GOOD specifically: GOOD IV at 63.40% is on the cheap side of its 1-year range, which means a premium-selling GOOD covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 5.49% (roughly $0.68 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 GOOD expiries trade a higher absolute premium for lower per-day decay. Position sizing on GOOD should anchor to the underlying notional of $12.30 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 near $12.30, the first option leg uses a $12.92 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 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 GOOD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $12.30 | long |
| Sell 1 | Call | $12.92 | 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 $11.62 on the downside to $12.98 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 14.14% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on GOOD at 63.40%. 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 trading near $12.30, the strikes shown on this page are snapped to the nearest listed GOOD chain strike and the premiums come straight from the end-of-day 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 63.40%), 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 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 GOOD market-implied 1-standard-deviation expected move is approximately 5.49%; 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 63.40% with IV rank near 14.14%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.