OI Covered Call Strategy
OI (O-I Glass, Inc.), in the Consumer Cyclical sector, (Packaging & Containers industry), listed on NYSE.
O-I Glass, Inc., through its various subsidiaries, is dedicated to the manufacturing and global distribution of glass packaging. The company primarily furnishes glass containers to businesses in the food and beverage industries across the Americas, Europe, and the Asia Pacific regions. Their product offerings encompass glass bottles and jars specifically designed for alcoholic beverages, such as beer, spirits, wine, and flavored malt beverages. Additionally, they provide glass packaging solutions for a range of other products, including various food items, soft drinks, teas, juices, and pharmaceutical goods. O-I Glass ensures a comprehensive selection of glass containers, available in diverse sizes, unique shapes, and a wide spectrum of colors to meet client specifications. The company facilitates sales directly to its customers, often secured through multi-year supply contracts, and also leverages a network of distributors.
OI (O-I Glass, Inc.) trades in the Consumer Cyclical sector, specifically Packaging & Containers, with a market capitalization of approximately $1.04B, a beta of 0.66 versus the broader market, a 52-week range of 6.71-16.91, average daily share volume of 3.0M, a public-listing history dating back to 1991, approximately 19K full-time employees. These structural characteristics shape how OI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.66 indicates OI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. OI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on OI?
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.
OI snapshot
As of August 14, 2026, spot at $6.83, ATM IV 50.30%, IV rank 10.04%, expected move 14.42%. The covered call on OI below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.
Why this covered call structure on OI specifically: OI IV at 50.30% is on the cheap side of its 1-year range, which means a premium-selling OI covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 14.42% (roughly $0.98 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OI expiries trade a higher absolute premium for lower per-day decay. Position sizing on OI should anchor to the underlying notional of $6.83 per share and to the trader's directional view on OI stock.
OI covered call setup
The OI covered call below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With OI at $6.83 on that close, the first option leg uses a $7.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OI chain at a 7-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 OI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $6.83 | long |
| Sell 1 | Call | $7.00 | $0.13 |
OI covered call risk and reward
- Net Premium / Debit
- -$670.50
- Max Profit (per contract)
- $29.50
- Max Loss (per contract)
- -$669.50
- Breakeven(s)
- $6.71
- Risk / Reward Ratio
- 0.044
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.
OI covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on OI. 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 | -99.9% | -$669.50 |
| $1.52 | -77.8% | -$518.60 |
| $3.03 | -55.7% | -$367.69 |
| $4.54 | -33.6% | -$216.79 |
| $6.05 | -11.5% | -$65.88 |
| $7.56 | +10.6% | +$29.50 |
| $9.06 | +32.7% | +$29.50 |
| $10.57 | +54.8% | +$29.50 |
| $12.08 | +76.9% | +$29.50 |
| $13.59 | +99.0% | +$29.50 |
When traders use covered call on OI
Covered calls on OI are an income strategy run on existing OI stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
OI thesis for this covered call
The market-implied 1-standard-deviation range for OI extends from approximately $5.85 on the downside to $7.81 on the upside. A OI covered call collects premium on an existing long OI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether OI will breach that level within the expiration window. Current OI IV rank near 10.04% 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 OI at 50.30%. As a Consumer Cyclical name, OI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OI-specific events.
OI 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. OI positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OI alongside the broader basket even when OI-specific fundamentals are unchanged. Short-premium structures like a covered call on OI carry tail risk when realized volatility exceeds the implied move; review historical OI earnings reactions and macro stress periods before sizing. Always rebuild the position from current OI chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on OI?
- A covered call on OI is the covered call strategy applied to OI (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 OI stock at $6.83 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed OI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are OI 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 OI covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 50.30%), the computed maximum profit is $29.50 per contract and the computed maximum loss is -$669.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OI covered call?
- The breakeven for the OI covered call priced on this page is roughly $6.71 at expiration, derived from the August 14, 2026 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 OI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.42%; 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 OI?
- Covered calls on OI are an income strategy run on existing OI 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 OI implied volatility affect this covered call?
- OI ATM IV is at 50.30% with IV rank near 10.04%, 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.