GTIM Covered Call Strategy

GTIM (Good Times Restaurants Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NASDAQ.

Good Times Restaurants Inc., through its subsidiaries, engages in the restaurant business in the United States. The company operates and franchises Good Times Burgers & Frozen Custard, an upscale quick-service drive-through dining restaurant; and owns, operates, franchises, and licenses Bad Daddy's Burger Bar, a full-service upscale casual dining restaurant. As of December 15, 2021, it operated, franchised, or licensed 42 Bad Daddy's Burger Bar restaurants; and 32 Good Times Burgers & Frozen Custard restaurants. The company was incorporated in 1987 and is based in Golden, Colorado.

GTIM (Good Times Restaurants Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $13.1M, a trailing P/E of 7.22, a beta of 0.65 versus the broader market, a 52-week range of 1.1-2.09, average daily share volume of 27K, a public-listing history dating back to 1992, approximately 2K full-time employees. These structural characteristics shape how GTIM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.65 indicates GTIM 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 7.22 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a covered call on GTIM?

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 GTIM snapshot

As of May 15, 2026, spot at $1.24, ATM IV 24.80%, IV rank 1.54%, expected move 7.11%. The covered call on GTIM 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 GTIM specifically: GTIM IV at 24.80% is on the cheap side of its 1-year range, which means a premium-selling GTIM covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.11% (roughly $0.09 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 GTIM expiries trade a higher absolute premium for lower per-day decay. Position sizing on GTIM should anchor to the underlying notional of $1.24 per share and to the trader's directional view on GTIM stock.

GTIM covered call setup

The GTIM 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 GTIM near $1.24, the first option leg uses a $1.30 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GTIM 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 GTIM shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Buy 100 sharesStock$1.24long
Sell 1Call$1.30N/A

GTIM 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.

GTIM covered call payoff curve

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

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

GTIM thesis for this covered call

The market-implied 1-standard-deviation range for GTIM extends from approximately $1.15 on the downside to $1.33 on the upside. A GTIM covered call collects premium on an existing long GTIM position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether GTIM will breach that level within the expiration window. Current GTIM IV rank near 1.54% 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 GTIM at 24.80%. As a Consumer Cyclical name, GTIM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GTIM-specific events.

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

Frequently asked questions

What is a covered call on GTIM?
A covered call on GTIM is the covered call strategy applied to GTIM (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 GTIM stock trading near $1.24, the strikes shown on this page are snapped to the nearest listed GTIM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GTIM 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 GTIM covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 24.80%), 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 GTIM covered call?
The breakeven for the GTIM 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 GTIM market-implied 1-standard-deviation expected move is approximately 7.11%; 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 GTIM?
Covered calls on GTIM are an income strategy run on existing GTIM 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 GTIM implied volatility affect this covered call?
GTIM ATM IV is at 24.80% with IV rank near 1.54%, 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.

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