KINS Covered Call Strategy
KINS (Kingstone Companies, Inc.), in the Financial Services sector, (Insurance - Property & Casualty industry), listed on NASDAQ.
Kingstone Companies, Inc., through its subsidiary, Kingstone Insurance Company, underwrites property and casualty insurance products to individuals in New York. The company offers personal line of insurance products, including homeowners and dwelling fire multi-peril, cooperative/condominiums, renters, and personal umbrella policies. It also provides for-hire vehicle physical damage only policies for livery and car service vehicles and taxicabs; and canine legal liability policies, as well as reinsurance products. It sells its products through retail and wholesale agents and brokers. The company was formerly known as DCAP Group, Inc. and changed its name to Kingstone Companies, Inc. in July 2009. Kingstone Companies, Inc. was founded in 1886 and is headquartered in Kingston, New York.
KINS (Kingstone Companies, Inc.) trades in the Financial Services sector, specifically Insurance - Property & Casualty, with a market capitalization of approximately $205.1M, a trailing P/E of 6.59, a beta of 0.53 versus the broader market, a 52-week range of 13.08-19.42, average daily share volume of 121K, a public-listing history dating back to 1999, approximately 99 full-time employees. These structural characteristics shape how KINS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.53 indicates KINS 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 6.59 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. KINS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on KINS?
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 KINS snapshot
As of May 15, 2026, spot at $14.70, ATM IV 228.40%, IV rank 64.83%, expected move 15.80%. The covered call on KINS 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 KINS specifically: KINS IV at 228.40% is mid-range versus its 1-year history, so the credit collected on a KINS covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 15.80% (roughly $2.32 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 KINS expiries trade a higher absolute premium for lower per-day decay. Position sizing on KINS should anchor to the underlying notional of $14.70 per share and to the trader's directional view on KINS stock.
KINS covered call setup
The KINS 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 KINS near $14.70, the first option leg uses a $15.44 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KINS 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 KINS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $14.70 | long |
| Sell 1 | Call | $15.44 | N/A |
KINS 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.
KINS covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on KINS. 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 KINS
Covered calls on KINS are an income strategy run on existing KINS stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
KINS thesis for this covered call
The market-implied 1-standard-deviation range for KINS extends from approximately $12.38 on the downside to $17.02 on the upside. A KINS covered call collects premium on an existing long KINS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether KINS will breach that level within the expiration window. Current KINS IV rank near 64.83% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on KINS should anchor more to the directional view and the expected-move geometry. As a Financial Services name, KINS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KINS-specific events.
KINS 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. KINS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KINS alongside the broader basket even when KINS-specific fundamentals are unchanged. Short-premium structures like a covered call on KINS carry tail risk when realized volatility exceeds the implied move; review historical KINS earnings reactions and macro stress periods before sizing. Always rebuild the position from current KINS chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on KINS?
- A covered call on KINS is the covered call strategy applied to KINS (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 KINS stock trading near $14.70, the strikes shown on this page are snapped to the nearest listed KINS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KINS 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 KINS covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 228.40%), 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 KINS covered call?
- The breakeven for the KINS 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 KINS market-implied 1-standard-deviation expected move is approximately 15.80%; 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 KINS?
- Covered calls on KINS are an income strategy run on existing KINS 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 KINS implied volatility affect this covered call?
- KINS ATM IV is at 228.40% with IV rank near 64.83%, 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.