JBSS Covered Call Strategy
JBSS (John B. Sanfilippo & Son, Inc.), in the Consumer Defensive sector, (Packaged Foods industry), listed on NASDAQ.
John B. Sanfilippo & Son, Inc., through its subsidiary, JBSS Ventures, LLC, processes and distributes tree nuts and peanuts in the United States. The company offers raw and processed nuts, including almonds, pecans, peanuts, black walnuts, English walnuts, cashews, macadamia nuts, pistachios, pine nuts, Brazil nuts, and filberts in various styles and seasonings. It also offers peanut butter in various sizes and varieties; snack and trail mixes, salad toppings, snacks, snack bites, dried fruit, and chocolate and yogurt coated products; baking ingredients; bulk food products; sunflower kernels, pepitas, almond and cashew butter, candy and confections, corn snacks, chickpea snacks, sesame sticks, and other sesame snack products; and various toppings for ice cream and yogurt. In addition, the company operates a retail store. The company provides its products under the Fisher, Orchard Valley Harvest, Squirrel Brand, and Southern Style Nuts brands, as well as under various private brands.
JBSS (John B. Sanfilippo & Son, Inc.) trades in the Consumer Defensive sector, specifically Packaged Foods, with a market capitalization of approximately $884.7M, a trailing P/E of 13.22, a beta of 0.37 versus the broader market, a 52-week range of 59.07-85.15, average daily share volume of 85K, a public-listing history dating back to 1991, approximately 2K full-time employees. These structural characteristics shape how JBSS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.37 indicates JBSS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. JBSS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on JBSS?
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 JBSS snapshot
As of May 15, 2026, spot at $75.01, ATM IV 30.70%, IV rank 2.91%, expected move 8.80%. The covered call on JBSS 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 JBSS specifically: JBSS IV at 30.70% is on the cheap side of its 1-year range, which means a premium-selling JBSS covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.80% (roughly $6.60 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 JBSS expiries trade a higher absolute premium for lower per-day decay. Position sizing on JBSS should anchor to the underlying notional of $75.01 per share and to the trader's directional view on JBSS stock.
JBSS covered call setup
The JBSS 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 JBSS near $75.01, the first option leg uses a $78.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed JBSS 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 JBSS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $75.01 | long |
| Sell 1 | Call | $78.50 | $2.48 |
JBSS covered call risk and reward
- Net Premium / Debit
- -$7,253.50
- Max Profit (per contract)
- $596.50
- Max Loss (per contract)
- -$7,252.50
- Breakeven(s)
- $72.54
- Risk / Reward Ratio
- 0.082
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.
JBSS covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on JBSS. 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% | -$7,252.50 |
| $16.59 | -77.9% | -$5,594.10 |
| $33.18 | -55.8% | -$3,935.70 |
| $49.76 | -33.7% | -$2,277.29 |
| $66.35 | -11.6% | -$618.89 |
| $82.93 | +10.6% | +$596.50 |
| $99.51 | +32.7% | +$596.50 |
| $116.10 | +54.8% | +$596.50 |
| $132.68 | +76.9% | +$596.50 |
| $149.27 | +99.0% | +$596.50 |
When traders use covered call on JBSS
Covered calls on JBSS are an income strategy run on existing JBSS stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
JBSS thesis for this covered call
The market-implied 1-standard-deviation range for JBSS extends from approximately $68.41 on the downside to $81.61 on the upside. A JBSS covered call collects premium on an existing long JBSS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether JBSS will breach that level within the expiration window. Current JBSS IV rank near 2.91% 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 JBSS at 30.70%. As a Consumer Defensive name, JBSS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to JBSS-specific events.
JBSS 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. JBSS positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move JBSS alongside the broader basket even when JBSS-specific fundamentals are unchanged. Short-premium structures like a covered call on JBSS carry tail risk when realized volatility exceeds the implied move; review historical JBSS earnings reactions and macro stress periods before sizing. Always rebuild the position from current JBSS chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on JBSS?
- A covered call on JBSS is the covered call strategy applied to JBSS (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 JBSS stock trading near $75.01, the strikes shown on this page are snapped to the nearest listed JBSS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are JBSS 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 JBSS covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 30.70%), the computed maximum profit is $596.50 per contract and the computed maximum loss is -$7,252.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a JBSS covered call?
- The breakeven for the JBSS covered call priced on this page is roughly $72.54 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 JBSS market-implied 1-standard-deviation expected move is approximately 8.80%; 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 JBSS?
- Covered calls on JBSS are an income strategy run on existing JBSS 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 JBSS implied volatility affect this covered call?
- JBSS ATM IV is at 30.70% with IV rank near 2.91%, 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.