KNOP Long Call Strategy

KNOP (KNOT Offshore Partners LP), in the Industrials sector, (Marine Shipping industry), listed on NYSE.

KNOT Offshore Partners LP is engaged in the management and expansion of a fleet of specialized shuttle tankers. These vessels are primarily utilized for the intricate logistics of crude oil, operating under extended contractual agreements predominantly within the North Sea and Brazilian offshore regions. The company's services cover the comprehensive crude oil supply chain, from collection and transportation to discharge and temporary storage, facilitated through both time and bareboat charter arrangements. As of March 17, 2022, the organization maintained a fleet comprising seventeen such tankers. KNOT Offshore Partners LP was established in 2013 and has its principal office situated in Aberdeen, United Kingdom.

KNOP (KNOT Offshore Partners LP) trades in the Industrials sector, specifically Marine Shipping, with a market capitalization of approximately $353.1M, a trailing P/E of 19.43, a beta of -0.06 versus the broader market, a 52-week range of 6.95-11.78, average daily share volume of 81K, a public-listing history dating back to 2013, approximately 815 full-time employees. These structural characteristics shape how KNOP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.06 indicates KNOP has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. KNOP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a long call on KNOP?

A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration.

KNOP snapshot

As of August 14, 2026, spot at $10.66, ATM IV 71.20%, IV rank 16.69%, expected move 20.41%. The long call on KNOP below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this long call structure on KNOP specifically: KNOP IV at 71.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a KNOP long call, with a market-implied 1-standard-deviation move of approximately 20.41% (roughly $2.18 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KNOP expiries trade a higher absolute premium for lower per-day decay. Position sizing on KNOP should anchor to the underlying notional of $10.66 per share and to the trader's directional view on KNOP stock.

KNOP long call setup

The KNOP long 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 KNOP at $10.66 on that close, the first option leg uses a $10.66 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KNOP chain at a 35-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 KNOP shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Buy 1Call$10.66N/A

KNOP long 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 is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium.

KNOP long call payoff curve

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

Long calls on KNOP express a bullish thesis with defined risk; traders use them ahead of KNOP catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.

KNOP thesis for this long call

The market-implied 1-standard-deviation range for KNOP extends from approximately $8.48 on the downside to $12.84 on the upside. A KNOP long call expresses a directional view that the underlying closes above the strike plus premium at expiration, ideally with implied volatility holding or expanding to preserve extrinsic value through the hold period. Current KNOP IV rank near 16.69% 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 KNOP at 71.20%. As a Industrials name, KNOP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KNOP-specific events.

KNOP long call positions are structurally 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. KNOP positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KNOP alongside the broader basket even when KNOP-specific fundamentals are unchanged. Long-premium structures like a long call on KNOP are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current KNOP chain quotes before placing a trade.

Frequently asked questions

What is a long call on KNOP?
A long call on KNOP is the long call strategy applied to KNOP (stock). The strategy is structurally bullish: A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration. With KNOP stock at $10.66 on the most recent close, the strikes shown on this page are snapped to the nearest listed KNOP chain strike and the premiums come straight from that session's bid/ask midpoint.
How are KNOP long call max profit and max loss calculated?
Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium. For the KNOP long call priced from the end-of-day chain at a 30-day expiry (ATM IV 71.20%), 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 KNOP long call?
The breakeven for the KNOP long call priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The KNOP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 20.41%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a long call on KNOP?
Long calls on KNOP express a bullish thesis with defined risk; traders use them ahead of KNOP catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
How does current KNOP implied volatility affect this long call?
KNOP ATM IV is at 71.20% with IV rank near 16.69%, 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.

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