LOAN Covered Call Strategy
LOAN (Manhattan Bridge Capital, Inc.), in the Real Estate sector, (REIT - Mortgage industry), listed on NASDAQ.
Manhattan Bridge Capital, Inc., a real estate finance company, originates, services, and manages a portfolio of first mortgage loans in the United States. It offers short-term, secured, and non-banking loans to real estate investors to fund their acquisition, renovation, rehabilitation, or enhancement of properties in the New York metropolitan area, including New Jersey and Connecticut, and in Florida. The company's loans are primarily secured by collateral consisting of real estate and accompanied by personal guarantees from the principals of the borrowers. It qualifies as a real estate investment trust for federal income tax purposes. The company generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Manhattan Bridge Capital, Inc. was founded in 1989 and is headquartered in Great Neck, New York.
LOAN (Manhattan Bridge Capital, Inc.) trades in the Real Estate sector, specifically REIT - Mortgage, with a market capitalization of approximately $47.8M, a trailing P/E of 9.53, a beta of 0.15 versus the broader market, a 52-week range of 4.13-5.85, average daily share volume of 28K, a public-listing history dating back to 1999, approximately 6 full-time employees. These structural characteristics shape how LOAN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.15 indicates LOAN 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 9.53 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. LOAN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on LOAN?
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 LOAN snapshot
As of May 14, 2026, spot at $4.25, ATM IV 44.60%, IV rank 14.97%, expected move 12.79%. The covered call on LOAN 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 35-day expiry.
Why this covered call structure on LOAN specifically: LOAN IV at 44.60% is on the cheap side of its 1-year range, which means a premium-selling LOAN covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 12.79% (roughly $0.54 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 LOAN expiries trade a higher absolute premium for lower per-day decay. Position sizing on LOAN should anchor to the underlying notional of $4.25 per share and to the trader's directional view on LOAN stock.
LOAN covered call setup
The LOAN 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 LOAN near $4.25, the first option leg uses a $4.46 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LOAN 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 LOAN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $4.25 | long |
| Sell 1 | Call | $4.46 | N/A |
LOAN 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.
LOAN covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on LOAN. 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 LOAN
Covered calls on LOAN are an income strategy run on existing LOAN stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
LOAN thesis for this covered call
The market-implied 1-standard-deviation range for LOAN extends from approximately $3.71 on the downside to $4.79 on the upside. A LOAN covered call collects premium on an existing long LOAN position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether LOAN will breach that level within the expiration window. Current LOAN IV rank near 14.97% 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 LOAN at 44.60%. As a Real Estate name, LOAN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LOAN-specific events.
LOAN 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. LOAN positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LOAN alongside the broader basket even when LOAN-specific fundamentals are unchanged. Short-premium structures like a covered call on LOAN carry tail risk when realized volatility exceeds the implied move; review historical LOAN earnings reactions and macro stress periods before sizing. Always rebuild the position from current LOAN chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on LOAN?
- A covered call on LOAN is the covered call strategy applied to LOAN (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 LOAN stock trading near $4.25, the strikes shown on this page are snapped to the nearest listed LOAN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LOAN 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 LOAN covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 44.60%), 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 LOAN covered call?
- The breakeven for the LOAN 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 LOAN market-implied 1-standard-deviation expected move is approximately 12.79%; 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 LOAN?
- Covered calls on LOAN are an income strategy run on existing LOAN 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 LOAN implied volatility affect this covered call?
- LOAN ATM IV is at 44.60% with IV rank near 14.97%, 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.