How are IR 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 IR covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 35.40%), the computed maximum profit is $733.00 per contract and the computed maximum loss is -$7,766.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IR covered call?

The breakeven for the IR covered call priced on this page is roughly $77.67 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 IR market-implied 1-standard-deviation expected move is approximately 10.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IR implied volatility affect this covered call?

IR ATM IV is at 35.40% with IV rank near 61.04%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

IR Covered Call Strategy

IR (Ingersoll Rand Inc.), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.

Ingersoll Rand Inc., established in 1859 and headquartered in Davidson, North Carolina, delivers essential air, fluid, energy, medical, and specialized vehicle technologies to customers across the United States, Europe, the Middle East, Africa, and the Asia Pacific regions. The company operates through two primary divisions: Industrial Technologies and Services, and Precision and Science Technologies. The Industrial Technologies and Services division is responsible for the design, production, sales, and maintenance of various air and gas compression, vacuum, and blower solutions, alongside fluid handling and loading systems, power tools, and lifting apparatus. This segment also encompasses all related spare parts, consumables, air purification systems, controls, additional accessories, and support services. Meanwhile, the Precision and Science Technologies segment focuses on designing, manufacturing, and marketing a range of highly specialized positive displacement pumps, advanced fluid management systems, and their associated accessories and aftermarket parts. These solutions are critical for precise liquid and gas operations such as dosing, transfer, dispensing, compression, sampling, pressure regulation, and flow control in demanding or niche environments.

IR (Ingersoll Rand Inc.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $31.84B, a trailing P/E of 54.34, a beta of 1.20 versus the broader market, a 52-week range of 68.07-100.96, average daily share volume of 4.0M, a public-listing history dating back to 2017, approximately 21K full-time employees. These structural characteristics shape how IR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.20 places IR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 54.34 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. IR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on IR?

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 IR snapshot

As of June 30, 2026, spot at $82.32, ATM IV 35.40%, IV rank 61.04%, expected move 10.15%. The covered call on IR 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 IR specifically: IR IV at 35.40% is mid-range versus its 1-year history, so the credit collected on a IR covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 10.15% (roughly $8.35 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 IR expiries trade a higher absolute premium for lower per-day decay. Position sizing on IR should anchor to the underlying notional of $82.32 per share and to the trader's directional view on IR stock.

IR covered call setup

The IR 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 IR near $82.32, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IR 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 IR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$82.32	long
Sell 1	Call	$85.00	$4.65

IR covered call risk and reward

Net Premium / Debit: -$7,767.00
Max Profit (per contract): $733.00
Max Loss (per contract): -$7,766.00
Breakeven(s): $77.67
Risk / Reward Ratio: 0.094

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.

IR covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on IR. 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	-100.0%	-$7,766.00
$18.21	-77.9%	-$5,945.97
$36.41	-55.8%	-$4,125.94
$54.61	-33.7%	-$2,305.91
$72.81	-11.6%	-$485.88
$91.01	+10.6%	+$733.00
$109.21	+32.7%	+$733.00
$127.41	+54.8%	+$733.00
$145.61	+76.9%	+$733.00
$163.81	+99.0%	+$733.00

When traders use covered call on IR

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

IR thesis for this covered call

The market-implied 1-standard-deviation range for IR extends from approximately $73.97 on the downside to $90.67 on the upside. A IR covered call collects premium on an existing long IR position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether IR will breach that level within the expiration window. Current IR IV rank near 61.04% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on IR should anchor more to the directional view and the expected-move geometry. As a Industrials name, IR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IR-specific events.

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

Frequently asked questions

What is a covered call on IR?: A covered call on IR is the covered call strategy applied to IR (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 IR stock trading near $82.32, the strikes shown on this page are snapped to the nearest listed IR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are IR 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 IR covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 35.40%), the computed maximum profit is $733.00 per contract and the computed maximum loss is -$7,766.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IR covered call?: The breakeven for the IR covered call priced on this page is roughly $77.67 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 IR market-implied 1-standard-deviation expected move is approximately 10.15%; 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 IR?: Covered calls on IR are an income strategy run on existing IR 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 IR implied volatility affect this covered call?: IR ATM IV is at 35.40% with IV rank near 61.04%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.