PINE Covered Call Strategy
PINE (Alpine Income Property Trust, Inc.), in the Real Estate sector, (REIT - Retail industry), listed on NYSE.
Alpine Income Property Trust, Inc. (NYSE: PINE) is a publicly traded real estate investment trust that acquires, owns and operates a portfolio of high-quality single-tenant net leased commercial income properties.
PINE (Alpine Income Property Trust, Inc.) trades in the Real Estate sector, specifically REIT - Retail, with a market capitalization of approximately $312.3M, a trailing P/E of 415.55, a beta of 0.59 versus the broader market, a 52-week range of 13.1-20.8, average daily share volume of 182K, a public-listing history dating back to 2019. These structural characteristics shape how PINE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.59 indicates PINE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 415.55 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. PINE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on PINE?
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 PINE snapshot
As of May 15, 2026, spot at $18.74, ATM IV 185.20%, IV rank 72.57%, expected move 53.10%. The covered call on PINE 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 PINE specifically: PINE IV at 185.20% is rich versus its 1-year range, which favors premium-selling structures like a PINE covered call, with a market-implied 1-standard-deviation move of approximately 53.10% (roughly $9.95 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 PINE expiries trade a higher absolute premium for lower per-day decay. Position sizing on PINE should anchor to the underlying notional of $18.74 per share and to the trader's directional view on PINE stock.
PINE covered call setup
The PINE 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 PINE near $18.74, the first option leg uses a $19.68 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PINE 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 PINE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $18.74 | long |
| Sell 1 | Call | $19.68 | N/A |
PINE 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.
PINE covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on PINE. 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 PINE
Covered calls on PINE are an income strategy run on existing PINE stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
PINE thesis for this covered call
The market-implied 1-standard-deviation range for PINE extends from approximately $8.79 on the downside to $28.69 on the upside. A PINE covered call collects premium on an existing long PINE position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether PINE will breach that level within the expiration window. Current PINE IV rank near 72.57% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on PINE at 185.20%. As a Real Estate name, PINE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PINE-specific events.
PINE 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. PINE positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PINE alongside the broader basket even when PINE-specific fundamentals are unchanged. Short-premium structures like a covered call on PINE carry tail risk when realized volatility exceeds the implied move; review historical PINE earnings reactions and macro stress periods before sizing. Always rebuild the position from current PINE chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on PINE?
- A covered call on PINE is the covered call strategy applied to PINE (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 PINE stock trading near $18.74, the strikes shown on this page are snapped to the nearest listed PINE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PINE 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 PINE covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 185.20%), 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 PINE covered call?
- The breakeven for the PINE 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 PINE market-implied 1-standard-deviation expected move is approximately 53.10%; 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 PINE?
- Covered calls on PINE are an income strategy run on existing PINE 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 PINE implied volatility affect this covered call?
- PINE ATM IV is at 185.20% with IV rank near 72.57%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.