NVGS Covered Call Strategy
NVGS (Navigator Holdings Ltd.), in the Energy sector, (Oil & Gas Midstream industry), listed on NYSE.
Navigator Holdings Ltd. owns and operates a fleet of liquefied gas carriers worldwide. The company provides international and regional seaborne transportation services of liquefied petroleum gas, petrochemical gases, and ammonia for energy companies, industrial users, and commodity traders. As of April 14, 2022, it operated a fleet of 53 semi- or fully-refrigerated liquefied gas carriers. The company was founded in 1997 and is based in London, the United Kingdom.
NVGS (Navigator Holdings Ltd.) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $1.52B, a trailing P/E of 13.92, a beta of 0.45 versus the broader market, a 52-week range of 13.5-23.54, average daily share volume of 446K, a public-listing history dating back to 2007, approximately 174 full-time employees. These structural characteristics shape how NVGS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.45 indicates NVGS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. NVGS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on NVGS?
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 NVGS snapshot
As of May 15, 2026, spot at $23.68, ATM IV 28.10%, IV rank 3.68%, expected move 8.06%. The covered call on NVGS 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 NVGS specifically: NVGS IV at 28.10% is on the cheap side of its 1-year range, which means a premium-selling NVGS covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.06% (roughly $1.91 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 NVGS expiries trade a higher absolute premium for lower per-day decay. Position sizing on NVGS should anchor to the underlying notional of $23.68 per share and to the trader's directional view on NVGS stock.
NVGS covered call setup
The NVGS 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 NVGS near $23.68, the first option leg uses a $25.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NVGS 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 NVGS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $23.68 | long |
| Sell 1 | Call | $25.00 | $0.35 |
NVGS covered call risk and reward
- Net Premium / Debit
- -$2,333.00
- Max Profit (per contract)
- $167.00
- Max Loss (per contract)
- -$2,332.00
- Breakeven(s)
- $23.33
- Risk / Reward Ratio
- 0.072
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.
NVGS covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on NVGS. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$2,332.00 |
| $5.24 | -77.9% | -$1,808.53 |
| $10.48 | -55.7% | -$1,285.07 |
| $15.71 | -33.6% | -$761.60 |
| $20.95 | -11.5% | -$238.13 |
| $26.18 | +10.6% | +$167.00 |
| $31.42 | +32.7% | +$167.00 |
| $36.65 | +54.8% | +$167.00 |
| $41.89 | +76.9% | +$167.00 |
| $47.12 | +99.0% | +$167.00 |
When traders use covered call on NVGS
Covered calls on NVGS are an income strategy run on existing NVGS stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
NVGS thesis for this covered call
The market-implied 1-standard-deviation range for NVGS extends from approximately $21.77 on the downside to $25.59 on the upside. A NVGS covered call collects premium on an existing long NVGS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether NVGS will breach that level within the expiration window. Current NVGS IV rank near 3.68% 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 NVGS at 28.10%. As a Energy name, NVGS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NVGS-specific events.
NVGS 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. NVGS positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NVGS alongside the broader basket even when NVGS-specific fundamentals are unchanged. Short-premium structures like a covered call on NVGS carry tail risk when realized volatility exceeds the implied move; review historical NVGS earnings reactions and macro stress periods before sizing. Always rebuild the position from current NVGS chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on NVGS?
- A covered call on NVGS is the covered call strategy applied to NVGS (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 NVGS stock trading near $23.68, the strikes shown on this page are snapped to the nearest listed NVGS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NVGS 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 NVGS covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 28.10%), the computed maximum profit is $167.00 per contract and the computed maximum loss is -$2,332.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NVGS covered call?
- The breakeven for the NVGS covered call priced on this page is roughly $23.33 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 NVGS market-implied 1-standard-deviation expected move is approximately 8.06%; 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 NVGS?
- Covered calls on NVGS are an income strategy run on existing NVGS 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 NVGS implied volatility affect this covered call?
- NVGS ATM IV is at 28.10% with IV rank near 3.68%, 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.