GURE Covered Call Strategy
GURE (Gulf Resources, Inc.), in the Basic Materials sector, (Chemicals - Specialty industry), listed on NASDAQ.
Gulf Resources, Inc., through its subsidiaries, manufactures and trades bromine and crude salt, chemical products, and natural gas in the People's Republic of China. It provides bromine for use in bromine compounds, intermediates in organic synthesis, brominated flame retardants, fumigants, water purification compounds, dyes, medicines, and disinfectants. The company also offers crude salt for use as a material in alkali and chlorine alkali production; and for use in the chemical, food and beverage, and other industries. In addition, it manufactures and sells chemical products for use in oil and gas field exploration, oil and gas distribution, oil field drilling, papermaking chemical agents, and inorganic chemicals, as well as materials that are used for human and animal antibiotics. The company is based in Shouguang, the People's Republic of China.
GURE (Gulf Resources, Inc.) trades in the Basic Materials sector, specifically Chemicals - Specialty, with a market capitalization of approximately $5.9M, a beta of -0.36 versus the broader market, a 52-week range of 2.04-11.83, average daily share volume of 55K, a public-listing history dating back to 2006, approximately 367 full-time employees. These structural characteristics shape how GURE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.36 indicates GURE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a covered call on GURE?
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 GURE snapshot
As of May 15, 2026, spot at $4.22. The covered call on GURE 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 30-day expiry.
Why this covered call structure on GURE specifically: IV rank is unavailable in the current snapshot, so regime-based timing for GURE is inferred from ATM IV alone. The 30-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GURE expiries trade a higher absolute premium for lower per-day decay. Position sizing on GURE should anchor to the underlying notional of $4.22 per share and to the trader's directional view on GURE stock.
GURE covered call setup
The GURE 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 GURE near $4.22, the first option leg uses a $4.43 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GURE chain at a 30-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 GURE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $4.22 | long |
| Sell 1 | Call | $4.43 | N/A |
GURE 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.
GURE covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on GURE. 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 GURE
Covered calls on GURE are an income strategy run on existing GURE stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
GURE thesis for this covered call
A GURE covered call collects premium on an existing long GURE position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether GURE will breach that level within the expiration window. As a Basic Materials name, GURE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GURE-specific events.
GURE 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. GURE positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GURE alongside the broader basket even when GURE-specific fundamentals are unchanged. Short-premium structures like a covered call on GURE carry tail risk when realized volatility exceeds the implied move; review historical GURE earnings reactions and macro stress periods before sizing. Always rebuild the position from current GURE chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on GURE?
- A covered call on GURE is the covered call strategy applied to GURE (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 GURE stock trading near $4.22, the strikes shown on this page are snapped to the nearest listed GURE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GURE 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 GURE covered call priced from the end-of-day chain at a 30-day expiry (ATM IV the current ATM IV), 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 GURE covered call?
- The breakeven for the GURE 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.
- When should you consider a covered call on GURE?
- Covered calls on GURE are an income strategy run on existing GURE 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 GURE implied volatility affect this covered call?
- Current GURE ATM IV is the current ATM IV; IV rank context is unavailable in the current snapshot.