How are GPRE 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 GPRE covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 53.70%), the computed maximum profit is $222.50 per contract and the computed maximum loss is -$1,376.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GPRE covered call?

The breakeven for the GPRE covered call priced on this page is roughly $13.78 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 GPRE market-implied 1-standard-deviation expected move is approximately 15.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GPRE implied volatility affect this covered call?

GPRE ATM IV is at 53.70% with IV rank near 4.91%, 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.

GPRE Covered Call Strategy

GPRE (Green Plains Inc.), in the Basic Materials sector, (Chemicals - Specialty industry), listed on NASDAQ.

Green Plains Inc. is primarily engaged in the manufacturing, marketing, and worldwide distribution of ethanol, serving both domestic and international markets. The company's operations are organized into three principal divisions: Ethanol Production, Agribusiness and Energy Services, and Partnership. The Ethanol Production division focuses on creating and selling ethanol, which includes industrial-grade alcohol, along with co-products such as distiller grains, ultra-high protein, and corn oil. The Agribusiness and Energy Services division manages grain procurement, handling, and storage operations. It also encompasses a commodity marketing business that acquires, promotes, sells, and delivers various commodities like ethanol, distiller grains, ultra-high protein, corn oil, raw grain, natural gas, and other goods across diverse markets. Furthermore, this division provides grain drying and storage solutions directly to agricultural producers.

GPRE (Green Plains Inc.) trades in the Basic Materials sector, specifically Chemicals - Specialty, with a market capitalization of approximately $1.06B, a beta of 1.19 versus the broader market, a 52-week range of 5.85-18.94, average daily share volume of 1.5M, a public-listing history dating back to 2006, approximately 923 full-time employees. These structural characteristics shape how GPRE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.19 places GPRE 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 GPRE?

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 GPRE snapshot

As of June 30, 2026, spot at $15.35, ATM IV 53.70%, IV rank 4.91%, expected move 15.40%. The covered call on GPRE 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 80-day expiry.

Why this covered call structure on GPRE specifically: GPRE IV at 53.70% is on the cheap side of its 1-year range, which means a premium-selling GPRE covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 15.40% (roughly $2.36 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GPRE expiries trade a higher absolute premium for lower per-day decay. Position sizing on GPRE should anchor to the underlying notional of $15.35 per share and to the trader's directional view on GPRE stock.

GPRE covered call setup

The GPRE 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 GPRE near $15.35, the first option leg uses a $16.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GPRE chain at a 80-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 GPRE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$15.35	long
Sell 1	Call	$16.00	$1.58

GPRE covered call risk and reward

Net Premium / Debit: -$1,377.50
Max Profit (per contract): $222.50
Max Loss (per contract): -$1,376.50
Breakeven(s): $13.78
Risk / Reward Ratio: 0.162

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.

GPRE covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on GPRE. 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	-99.9%	-$1,376.50
$3.40	-77.8%	-$1,037.21
$6.80	-55.7%	-$697.93
$10.19	-33.6%	-$358.64
$13.58	-11.5%	-$19.35
$16.97	+10.6%	+$222.50
$20.37	+32.7%	+$222.50
$23.76	+54.8%	+$222.50
$27.15	+76.9%	+$222.50
$30.55	+99.0%	+$222.50

When traders use covered call on GPRE

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

GPRE thesis for this covered call

The market-implied 1-standard-deviation range for GPRE extends from approximately $12.99 on the downside to $17.71 on the upside. A GPRE covered call collects premium on an existing long GPRE position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether GPRE will breach that level within the expiration window. Current GPRE IV rank near 4.91% 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 GPRE at 53.70%. As a Basic Materials name, GPRE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GPRE-specific events.

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

Frequently asked questions

What is a covered call on GPRE?: A covered call on GPRE is the covered call strategy applied to GPRE (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 GPRE stock trading near $15.35, the strikes shown on this page are snapped to the nearest listed GPRE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GPRE 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 GPRE covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 53.70%), the computed maximum profit is $222.50 per contract and the computed maximum loss is -$1,376.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GPRE covered call?: The breakeven for the GPRE covered call priced on this page is roughly $13.78 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 GPRE market-implied 1-standard-deviation expected move is approximately 15.40%; 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 GPRE?: Covered calls on GPRE are an income strategy run on existing GPRE 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 GPRE implied volatility affect this covered call?: GPRE ATM IV is at 53.70% with IV rank near 4.91%, 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.