GTIM Long 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 long call on GTIM?
A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration.
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 long 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 long call structure on GTIM specifically: GTIM IV at 24.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a GTIM long call, 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 long call setup
The GTIM long 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 $1.24 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).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.24 | N/A |
GTIM long 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 is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium.
GTIM long call payoff curve
Modeled P&L at expiration across a range of underlying prices for the long 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 long call on GTIM
Long calls on GTIM express a bullish thesis with defined risk; traders use them ahead of GTIM catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
GTIM thesis for this long 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 long call expresses a directional view that the underlying closes above the strike plus premium at expiration, ideally with implied volatility holding or expanding to preserve extrinsic value through the hold period. 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 long call positions are structurally 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. Long-premium structures like a long call on GTIM are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current GTIM chain quotes before placing a trade.
Frequently asked questions
- What is a long call on GTIM?
- A long call on GTIM is the long call strategy applied to GTIM (stock). The strategy is structurally bullish: A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration. 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 long call max profit and max loss calculated?
- Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium. For the GTIM long 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 long call?
- The breakeven for the GTIM long 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 long call on GTIM?
- Long calls on GTIM express a bullish thesis with defined risk; traders use them ahead of GTIM catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
- How does current GTIM implied volatility affect this long 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.