PFGC Covered Call Strategy
PFGC (Performance Food Group Company), in the Consumer Defensive sector, (Food Distribution industry), listed on NYSE.
Performance Food Group Company, through its subsidiaries, markets and distributes food and food-related products in the United States. It operates through three segments: Foodservice, Vistar, and Convenience. The company offers a range of frozen foods, groceries, candy, snacks, beverages, cigarettes, and other tobacco products; beef, pork, poultry, and seafood; and health and beauty care products. It also sells disposables, cleaning and kitchen supplies, and related products. In addition, the company offers value-added services, such as product selection and procurement, menu development, and operational strategy. It serves independent and chain restaurants, schools, business and industry locations, hospitals, vending distributors, office coffee service distributors, retailers, convenience stores, theaters, hospitality providers, concessionaires, airport gift shops, college bookstores, corrections facilities, and impulse locations, as well as franchises and other institutional customers.
PFGC (Performance Food Group Company) trades in the Consumer Defensive sector, specifically Food Distribution, with a market capitalization of approximately $15.05B, a trailing P/E of 45.45, a beta of 0.92 versus the broader market, a 52-week range of 80.82-109.05, average daily share volume of 1.8M, a public-listing history dating back to 2015, approximately 37K full-time employees. These structural characteristics shape how PFGC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.92 places PFGC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 45.45 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.
What is a covered call on PFGC?
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 PFGC snapshot
As of May 15, 2026, spot at $96.50, ATM IV 31.30%, IV rank 25.07%, expected move 8.97%. The covered call on PFGC 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 PFGC specifically: PFGC IV at 31.30% is on the cheap side of its 1-year range, which means a premium-selling PFGC covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.97% (roughly $8.66 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 PFGC expiries trade a higher absolute premium for lower per-day decay. Position sizing on PFGC should anchor to the underlying notional of $96.50 per share and to the trader's directional view on PFGC stock.
PFGC covered call setup
The PFGC 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 PFGC near $96.50, the first option leg uses a $100.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PFGC 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 PFGC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $96.50 | long |
| Sell 1 | Call | $100.00 | $2.45 |
PFGC covered call risk and reward
- Net Premium / Debit
- -$9,405.00
- Max Profit (per contract)
- $595.00
- Max Loss (per contract)
- -$9,404.00
- Breakeven(s)
- $94.05
- Risk / Reward Ratio
- 0.063
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.
PFGC covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on PFGC. 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% | -$9,404.00 |
| $21.35 | -77.9% | -$7,270.44 |
| $42.68 | -55.8% | -$5,136.88 |
| $64.02 | -33.7% | -$3,003.33 |
| $85.35 | -11.6% | -$869.77 |
| $106.69 | +10.6% | +$595.00 |
| $128.02 | +32.7% | +$595.00 |
| $149.36 | +54.8% | +$595.00 |
| $170.69 | +76.9% | +$595.00 |
| $192.03 | +99.0% | +$595.00 |
When traders use covered call on PFGC
Covered calls on PFGC are an income strategy run on existing PFGC stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
PFGC thesis for this covered call
The market-implied 1-standard-deviation range for PFGC extends from approximately $87.84 on the downside to $105.16 on the upside. A PFGC covered call collects premium on an existing long PFGC position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether PFGC will breach that level within the expiration window. Current PFGC IV rank near 25.07% 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 PFGC at 31.30%. As a Consumer Defensive name, PFGC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PFGC-specific events.
PFGC 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. PFGC positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PFGC alongside the broader basket even when PFGC-specific fundamentals are unchanged. Short-premium structures like a covered call on PFGC carry tail risk when realized volatility exceeds the implied move; review historical PFGC earnings reactions and macro stress periods before sizing. Always rebuild the position from current PFGC chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on PFGC?
- A covered call on PFGC is the covered call strategy applied to PFGC (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 PFGC stock trading near $96.50, the strikes shown on this page are snapped to the nearest listed PFGC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PFGC 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 PFGC covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 31.30%), the computed maximum profit is $595.00 per contract and the computed maximum loss is -$9,404.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PFGC covered call?
- The breakeven for the PFGC covered call priced on this page is roughly $94.05 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 PFGC market-implied 1-standard-deviation expected move is approximately 8.97%; 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 PFGC?
- Covered calls on PFGC are an income strategy run on existing PFGC 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 PFGC implied volatility affect this covered call?
- PFGC ATM IV is at 31.30% with IV rank near 25.07%, 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.