LOOP Long Call Strategy
LOOP (Loop Industries, Inc.), in the Basic Materials sector, (Chemicals - Specialty industry), listed on NASDAQ.
Loop Industries, Inc., a technology company, focuses on depolymerizing waste polyethylene terephthalate (PET) plastics and polyester fibers into base building blocks. It polymerized monomers into virgin-quality PET resins for use in food-grade plastic packaging, such as plastic bottles for water and carbonated soft drinks, and containers for food and other consumer products; and polyester fibers, including textiles, clothing, and apparel. The company was incorporated in 2010 and is based in Terrebonne, Canada.
LOOP (Loop Industries, Inc.) trades in the Basic Materials sector, specifically Chemicals - Specialty, with a market capitalization of approximately $69.6M, a beta of 1.44 versus the broader market, a 52-week range of 0.853-2.29, average daily share volume of 71K, a public-listing history dating back to 2017, approximately 50 full-time employees. These structural characteristics shape how LOOP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.44 indicates LOOP has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a long call on LOOP?
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.
Current LOOP snapshot
As of May 14, 2026, spot at $1.45, ATM IV 27.70%, IV rank 2.10%, expected move 7.94%. The long call on LOOP 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 long call structure on LOOP specifically: LOOP IV at 27.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a LOOP long call, with a market-implied 1-standard-deviation move of approximately 7.94% (roughly $0.12 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 LOOP expiries trade a higher absolute premium for lower per-day decay. Position sizing on LOOP should anchor to the underlying notional of $1.45 per share and to the trader's directional view on LOOP stock.
LOOP long call setup
The LOOP 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 LOOP near $1.45, the first option leg uses a $1.45 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LOOP 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 LOOP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.45 | N/A |
LOOP 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.
LOOP long call payoff curve
Modeled P&L at expiration across a range of underlying prices for the long call on LOOP. 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 LOOP
Long calls on LOOP express a bullish thesis with defined risk; traders use them ahead of LOOP catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
LOOP thesis for this long call
The market-implied 1-standard-deviation range for LOOP extends from approximately $1.33 on the downside to $1.57 on the upside. A LOOP 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 LOOP IV rank near 2.10% 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 LOOP at 27.70%. As a Basic Materials name, LOOP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LOOP-specific events.
LOOP 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. LOOP positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LOOP alongside the broader basket even when LOOP-specific fundamentals are unchanged. Long-premium structures like a long call on LOOP 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 LOOP chain quotes before placing a trade.
Frequently asked questions
- What is a long call on LOOP?
- A long call on LOOP is the long call strategy applied to LOOP (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 LOOP stock trading near $1.45, the strikes shown on this page are snapped to the nearest listed LOOP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LOOP 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 LOOP long call priced from the end-of-day chain at a 30-day expiry (ATM IV 27.70%), 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 LOOP long call?
- The breakeven for the LOOP long 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 LOOP market-implied 1-standard-deviation expected move is approximately 7.94%; 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 LOOP?
- Long calls on LOOP express a bullish thesis with defined risk; traders use them ahead of LOOP catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
- How does current LOOP implied volatility affect this long call?
- LOOP ATM IV is at 27.70% with IV rank near 2.10%, 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.