How are PCT 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 PCT covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 85.93%), the computed maximum profit is $101.50 per contract and the computed maximum loss is -$747.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PCT covered call?

The breakeven for the PCT covered call priced on this page is roughly $7.49 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 PCT market-implied 1-standard-deviation expected move is approximately 24.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PCT implied volatility affect this covered call?

PCT ATM IV is at 85.93% with IV rank near 55.94%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

PCT Covered Call Strategy

PCT (PureCycle Technologies, Inc.), in the Industrials sector, (Industrial - Pollution & Treatment Controls industry), listed on NASDAQ.

PureCycle Technologies, Inc. focuses on manufacturing high-quality, recycled polypropylene (PP). The company employs a proprietary and licensed technology that converts discarded PP materials into an exceptionally pure, regenerated resin. Through an advanced purification process, they meticulously eliminate color, odor, and other unwanted substances from plastic waste feedstock, thereby producing a resin comparable to newly manufactured virgin plastic. Established in 2015, the company maintains its corporate headquarters in Orlando, Florida.

PCT (PureCycle Technologies, Inc.) trades in the Industrials sector, specifically Industrial - Pollution & Treatment Controls, with a market capitalization of approximately $1.56B, a beta of 2.46 versus the broader market, a 52-week range of 4.93-17.37, average daily share volume of 5.4M, a public-listing history dating back to 2020, approximately 157 full-time employees. These structural characteristics shape how PCT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.46 indicates PCT 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 covered call on PCT?

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 PCT snapshot

As of June 30, 2026, spot at $8.11, ATM IV 85.93%, IV rank 55.94%, expected move 24.64%. The covered call on PCT 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 31-day expiry.

Why this covered call structure on PCT specifically: PCT IV at 85.93% is mid-range versus its 1-year history, so the credit collected on a PCT covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 24.64% (roughly $2.00 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PCT expiries trade a higher absolute premium for lower per-day decay. Position sizing on PCT should anchor to the underlying notional of $8.11 per share and to the trader's directional view on PCT stock.

PCT covered call setup

The PCT 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 PCT near $8.11, the first option leg uses a $8.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PCT chain at a 31-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 PCT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$8.11	long
Sell 1	Call	$8.50	$0.63

PCT covered call risk and reward

Net Premium / Debit: -$748.50
Max Profit (per contract): $101.50
Max Loss (per contract): -$747.50
Breakeven(s): $7.49
Risk / Reward Ratio: 0.136

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.

PCT covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on PCT. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$747.50
$1.80	-77.8%	-$568.29
$3.59	-55.7%	-$389.09
$5.39	-33.6%	-$209.88
$7.18	-11.5%	-$30.68
$8.97	+10.6%	+$101.50
$10.76	+32.7%	+$101.50
$12.55	+54.8%	+$101.50
$14.35	+76.9%	+$101.50
$16.14	+99.0%	+$101.50

When traders use covered call on PCT

Covered calls on PCT are an income strategy run on existing PCT stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.

PCT thesis for this covered call

The market-implied 1-standard-deviation range for PCT extends from approximately $6.11 on the downside to $10.11 on the upside. A PCT covered call collects premium on an existing long PCT position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether PCT will breach that level within the expiration window. Current PCT IV rank near 55.94% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on PCT should anchor more to the directional view and the expected-move geometry. As a Industrials name, PCT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PCT-specific events.

PCT 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. PCT positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PCT alongside the broader basket even when PCT-specific fundamentals are unchanged. Short-premium structures like a covered call on PCT carry tail risk when realized volatility exceeds the implied move; review historical PCT earnings reactions and macro stress periods before sizing. Always rebuild the position from current PCT chain quotes before placing a trade.

Frequently asked questions

What is a covered call on PCT?: A covered call on PCT is the covered call strategy applied to PCT (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 PCT stock trading near $8.11, the strikes shown on this page are snapped to the nearest listed PCT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PCT 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 PCT covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 85.93%), the computed maximum profit is $101.50 per contract and the computed maximum loss is -$747.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PCT covered call?: The breakeven for the PCT covered call priced on this page is roughly $7.49 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 PCT market-implied 1-standard-deviation expected move is approximately 24.64%; 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 PCT?: Covered calls on PCT are an income strategy run on existing PCT 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 PCT implied volatility affect this covered call?: PCT ATM IV is at 85.93% with IV rank near 55.94%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.