KEN Covered Call Strategy
KEN (Kenon Holdings Ltd.), in the Utilities sector, (Independent Power Producers industry), listed on NYSE.
Kenon Holdings Ltd., through its subsidiaries, operates as an owner, developer, and operator of power generation facilities in Israel, the United States, and internationally. It operates in four segments: OPC Israel, CPV Group, ZIM, and Quantum. The company engages in the generation and supply of electricity and energy; development, construction, and management of renewable energy and conventional natural gas-fired power plants; manufacture of automobiles; and provision of container liner shipping services. As of December 31, 2021, the company had an installed capacity of approximately 610 MW; and operated a fleet of 118 vessels. The company was incorporated in 2014 and is based in Singapore. Kenon Holdings Ltd. is a subsidiary of Ansonia Holdings Singapore B.V.
KEN (Kenon Holdings Ltd.) trades in the Utilities sector, specifically Independent Power Producers, with a market capitalization of approximately $4.72B, a trailing P/E of 71.28, a beta of 0.38 versus the broader market, a 52-week range of 32.742-95.93, average daily share volume of 26K, a public-listing history dating back to 2015, approximately 344 full-time employees. These structural characteristics shape how KEN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.38 indicates KEN 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 71.28 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. KEN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on KEN?
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 KEN snapshot
As of May 13, 2026, spot at $91.57, ATM IV 37.10%, IV rank 4.59%, expected move 10.64%. The covered call on KEN 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 36-day expiry.
Why this covered call structure on KEN specifically: KEN IV at 37.10% is on the cheap side of its 1-year range, which means a premium-selling KEN covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 10.64% (roughly $9.74 on the underlying). The 36-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KEN expiries trade a higher absolute premium for lower per-day decay. Position sizing on KEN should anchor to the underlying notional of $91.57 per share and to the trader's directional view on KEN stock.
KEN covered call setup
The KEN 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 KEN near $91.57, the first option leg uses a $96.15 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KEN chain at a 36-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 KEN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $91.57 | long |
| Sell 1 | Call | $96.15 | N/A |
KEN 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.
KEN covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on KEN. 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 KEN
Covered calls on KEN are an income strategy run on existing KEN stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
KEN thesis for this covered call
The market-implied 1-standard-deviation range for KEN extends from approximately $81.83 on the downside to $101.31 on the upside. A KEN covered call collects premium on an existing long KEN position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether KEN will breach that level within the expiration window. Current KEN IV rank near 4.59% 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 KEN at 37.10%. As a Utilities name, KEN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KEN-specific events.
KEN 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. KEN positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KEN alongside the broader basket even when KEN-specific fundamentals are unchanged. Short-premium structures like a covered call on KEN carry tail risk when realized volatility exceeds the implied move; review historical KEN earnings reactions and macro stress periods before sizing. Always rebuild the position from current KEN chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on KEN?
- A covered call on KEN is the covered call strategy applied to KEN (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 KEN stock trading near $91.57, the strikes shown on this page are snapped to the nearest listed KEN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KEN 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 KEN covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 37.10%), 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 KEN covered call?
- The breakeven for the KEN 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. The current KEN market-implied 1-standard-deviation expected move is approximately 10.64%; 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 KEN?
- Covered calls on KEN are an income strategy run on existing KEN 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 KEN implied volatility affect this covered call?
- KEN ATM IV is at 37.10% with IV rank near 4.59%, 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.