NFBK Covered Call Strategy
NFBK (Northfield Bancorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Northfield Bancorp, Inc. (Staten Island, NY) operates as the bank holding company for Northfield Bank that provides various banking services primarily to individuals and corporate customers. It accepts various deposits products, including certificates of deposit, passbook, statement, and money market savings accounts; transaction deposit accounts comprising negotiable orders of withdrawal accounts, and interest and non-interest-bearing checking accounts; individual retirement accounts; and brokered deposits. The company also offers various loans comprising multifamily and other commercial real estate loans, construction and land loans, commercial and industrial loans, one-to-four family residential real estate loans, and home equity loans and lines of credit. In addition, it purchases various investment securities, such as mortgage-backed securities and corporate bonds; and deposits funds in other financial institutions, as well as holds mortgage loans, mortgage-backed securities, and other investments. As of December 31, 2021, the company operated 38 full-service banking offices in Staten Island and Brooklyn, New York; and Hunterdon, Middlesex, Mercer, and Union counties, New Jersey. Northfield Bancorp, Inc. (Staten Island, NY) was founded in 1887 and is headquartered in Woodbridge, New Jersey.
NFBK (Northfield Bancorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $583.4M, a trailing P/E of 116.69, a beta of 0.71 versus the broader market, a 52-week range of 9.91-14.21, average daily share volume of 271K, a public-listing history dating back to 2007, approximately 357 full-time employees. These structural characteristics shape how NFBK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.71 places NFBK roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 116.69 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. NFBK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on NFBK?
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 NFBK snapshot
As of May 15, 2026, spot at $14.07, ATM IV 65.00%, IV rank 17.88%, expected move 18.63%. The covered call on NFBK 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 NFBK specifically: NFBK IV at 65.00% is on the cheap side of its 1-year range, which means a premium-selling NFBK covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 18.63% (roughly $2.62 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 NFBK expiries trade a higher absolute premium for lower per-day decay. Position sizing on NFBK should anchor to the underlying notional of $14.07 per share and to the trader's directional view on NFBK stock.
NFBK covered call setup
The NFBK 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 NFBK near $14.07, the first option leg uses a $14.77 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NFBK 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 NFBK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $14.07 | long |
| Sell 1 | Call | $14.77 | N/A |
NFBK 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.
NFBK covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on NFBK. 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 NFBK
Covered calls on NFBK are an income strategy run on existing NFBK stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
NFBK thesis for this covered call
The market-implied 1-standard-deviation range for NFBK extends from approximately $11.45 on the downside to $16.69 on the upside. A NFBK covered call collects premium on an existing long NFBK position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether NFBK will breach that level within the expiration window. Current NFBK IV rank near 17.88% 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 NFBK at 65.00%. As a Financial Services name, NFBK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NFBK-specific events.
NFBK 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. NFBK positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NFBK alongside the broader basket even when NFBK-specific fundamentals are unchanged. Short-premium structures like a covered call on NFBK carry tail risk when realized volatility exceeds the implied move; review historical NFBK earnings reactions and macro stress periods before sizing. Always rebuild the position from current NFBK chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on NFBK?
- A covered call on NFBK is the covered call strategy applied to NFBK (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 NFBK stock trading near $14.07, the strikes shown on this page are snapped to the nearest listed NFBK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NFBK 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 NFBK covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 65.00%), 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 NFBK covered call?
- The breakeven for the NFBK 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 NFBK market-implied 1-standard-deviation expected move is approximately 18.63%; 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 NFBK?
- Covered calls on NFBK are an income strategy run on existing NFBK 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 NFBK implied volatility affect this covered call?
- NFBK ATM IV is at 65.00% with IV rank near 17.88%, 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.