How are IRM 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 IRM covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 33.61%), the computed maximum profit is $809.50 per contract and the computed maximum loss is -$12,289.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IRM covered call?

The breakeven for the IRM covered call priced on this page is roughly $122.91 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 IRM market-implied 1-standard-deviation expected move is approximately 9.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IRM implied volatility affect this covered call?

IRM ATM IV is at 33.61% with IV rank near 44.73%, 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.

IRM Covered Call Strategy

IRM (Iron Mountain Incorporated), in the Real Estate sector, (REIT - Specialty industry), listed on NYSE.

Iron Mountain Incorporated (NYSE: IRM), founded in 1951, is the global leader for storage and information management services. Trusted by more than 225,000 organizations around the world, and with a real estate network of more than 90 million square feet across approximately 1,450 facilities in approximately 50 countries, Iron Mountain stores and protects billions of valued assets, including critical business information, highly sensitive data, and cultural and historical artifacts. Providing solutions that include secure records storage, information management, digital transformation, secure destruction, as well as data centers, cloud services and art storage and logistics, Iron Mountain helps customers lower cost and risk, comply with regulations, recover from disaster, and enable a more digital way of working.

IRM (Iron Mountain Incorporated) trades in the Real Estate sector, specifically REIT - Specialty, with a market capitalization of approximately $37.52B, a trailing P/E of 137.49, a beta of 1.23 versus the broader market, a 52-week range of 77.77-134.09, average daily share volume of 1.7M, a public-listing history dating back to 1996, approximately 29K full-time employees. These structural characteristics shape how IRM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.23 places IRM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 137.49 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. IRM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on IRM?

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 IRM snapshot

As of May 15, 2026, spot at $125.23, ATM IV 33.61%, IV rank 44.73%, expected move 9.64%. The covered call on IRM 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 28-day expiry.

Why this covered call structure on IRM specifically: IRM IV at 33.61% is mid-range versus its 1-year history, so the credit collected on a IRM covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 9.64% (roughly $12.07 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated IRM expiries trade a higher absolute premium for lower per-day decay. Position sizing on IRM should anchor to the underlying notional of $125.23 per share and to the trader's directional view on IRM stock.

IRM covered call setup

The IRM 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 IRM near $125.23, the first option leg uses a $131.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IRM chain at a 28-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 IRM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$125.23	long
Sell 1	Call	$131.00	$2.33

IRM covered call risk and reward

Net Premium / Debit: -$12,290.50
Max Profit (per contract): $809.50
Max Loss (per contract): -$12,289.50
Breakeven(s): $122.91
Risk / Reward Ratio: 0.066

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.

IRM covered call payoff curve

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

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$12,289.50
$27.70	-77.9%	-$9,520.71
$55.39	-55.8%	-$6,751.91
$83.07	-33.7%	-$3,983.12
$110.76	-11.6%	-$1,214.32
$138.45	+10.6%	+$809.50
$166.14	+32.7%	+$809.50
$193.83	+54.8%	+$809.50
$221.51	+76.9%	+$809.50
$249.20	+99.0%	+$809.50

When traders use covered call on IRM

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

IRM thesis for this covered call

The market-implied 1-standard-deviation range for IRM extends from approximately $113.16 on the downside to $137.30 on the upside. A IRM covered call collects premium on an existing long IRM position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether IRM will breach that level within the expiration window. Current IRM IV rank near 44.73% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on IRM should anchor more to the directional view and the expected-move geometry. As a Real Estate name, IRM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IRM-specific events.

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

Frequently asked questions

What is a covered call on IRM?: A covered call on IRM is the covered call strategy applied to IRM (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 IRM stock trading near $125.23, the strikes shown on this page are snapped to the nearest listed IRM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are IRM 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 IRM covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 33.61%), the computed maximum profit is $809.50 per contract and the computed maximum loss is -$12,289.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IRM covered call?: The breakeven for the IRM covered call priced on this page is roughly $122.91 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 IRM market-implied 1-standard-deviation expected move is approximately 9.64%; 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 IRM?: Covered calls on IRM are an income strategy run on existing IRM 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 IRM implied volatility affect this covered call?: IRM ATM IV is at 33.61% with IV rank near 44.73%, 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.