QRHC Covered Call Strategy
QRHC (Quest Resource Holding Corporation), in the Industrials sector, (Waste Management industry), listed on NASDAQ.
Quest Resource Holding Corporation, together with its subsidiaries, provides solutions for the reuse, recycling, and disposal of various waste streams and recyclables in the United States. It offers disposal and recycling services for motor oil and automotive lubricants, oil filters, scrap tires, oily water, goods destruction, food waste, meat renderings, cooking oil and grease trap waste, plastics, cardboard, metal, glass, mixed paper, construction debris, as well as a large variety of regulated and non-regulated solid, liquid, and gas wastes. The company provides santifreeze and windshield washer fluid, dumpster and compacting equipment, and other minor ancillary services. In addition, it offers landfill diversion services. The company's services focus on the waste streams and recyclables from big box, grocers, and other retailers; automotive maintenance, quick lube, dealerships, and collision repair; transportation, logistics, and internal fleet operators; manufacturing plants; multi-family and commercial properties; restaurant chains and food operations; and construction and demolition projects. It markets its services to automotive, manufacturing, hospitality and retail, construction and demolition, and commercial and multi-family property management industries through direct sales force and strategic partnerships.
QRHC (Quest Resource Holding Corporation) trades in the Industrials sector, specifically Waste Management, with a market capitalization of approximately $22.5M, a beta of 0.21 versus the broader market, a 52-week range of 0.81-2.55, average daily share volume of 58K, a public-listing history dating back to 2010, approximately 224 full-time employees. These structural characteristics shape how QRHC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.21 indicates QRHC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a covered call on QRHC?
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 QRHC snapshot
As of May 15, 2026, spot at $1.06, ATM IV 28.00%, IV rank 2.32%, expected move 8.03%. The covered call on QRHC 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 QRHC specifically: QRHC IV at 28.00% is on the cheap side of its 1-year range, which means a premium-selling QRHC covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.03% (roughly $0.09 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 QRHC expiries trade a higher absolute premium for lower per-day decay. Position sizing on QRHC should anchor to the underlying notional of $1.06 per share and to the trader's directional view on QRHC stock.
QRHC covered call setup
The QRHC 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 QRHC near $1.06, the first option leg uses a $1.11 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed QRHC 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 QRHC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $1.06 | long |
| Sell 1 | Call | $1.11 | N/A |
QRHC 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.
QRHC covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on QRHC. 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 QRHC
Covered calls on QRHC are an income strategy run on existing QRHC stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
QRHC thesis for this covered call
The market-implied 1-standard-deviation range for QRHC extends from approximately $0.97 on the downside to $1.15 on the upside. A QRHC covered call collects premium on an existing long QRHC position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether QRHC will breach that level within the expiration window. Current QRHC IV rank near 2.32% 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 QRHC at 28.00%. As a Industrials name, QRHC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to QRHC-specific events.
QRHC 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. QRHC positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move QRHC alongside the broader basket even when QRHC-specific fundamentals are unchanged. Short-premium structures like a covered call on QRHC carry tail risk when realized volatility exceeds the implied move; review historical QRHC earnings reactions and macro stress periods before sizing. Always rebuild the position from current QRHC chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on QRHC?
- A covered call on QRHC is the covered call strategy applied to QRHC (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 QRHC stock trading near $1.06, the strikes shown on this page are snapped to the nearest listed QRHC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are QRHC 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 QRHC covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 28.00%), 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 QRHC covered call?
- The breakeven for the QRHC 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 QRHC market-implied 1-standard-deviation expected move is approximately 8.03%; 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 QRHC?
- Covered calls on QRHC are an income strategy run on existing QRHC 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 QRHC implied volatility affect this covered call?
- QRHC ATM IV is at 28.00% with IV rank near 2.32%, 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.