How are RACE 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 RACE covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 32.45%), the computed maximum profit is $2,394.00 per contract and the computed maximum loss is -$31,605.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RACE covered call?

The breakeven for the RACE covered call priced on this page is roughly $316.06 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 RACE market-implied 1-standard-deviation expected move is approximately 9.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RACE implied volatility affect this covered call?

RACE ATM IV is at 32.45% with IV rank near 32.78%, 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.

RACE Covered Call Strategy

RACE (Ferrari N.V.), in the Consumer Cyclical sector, (Auto - Manufacturers industry), listed on NYSE.

Ferrari N.V., through its subsidiaries, designs, engineers, produces, and sells luxury performance sports cars. The company offers sports, GT, and special series cars; limited edition hyper cars; one-off and track cars; and Icona cars. It also provides racing cars, and spare parts and engines, as well as after sales, repair, maintenance, and restoration services for cars. In addition, the company licenses its Ferrari brand to various producers and retailers of luxury and lifestyle goods; Ferrari World, a theme park in Abu Dhabi, the United Arab Emirates; and Ferrari Land Portaventura, a theme park in Europe. Further, it provides direct or indirect finance and leasing services to retail clients and dealers; manages racetracks, as well as owns and manages two museums in Maranello and Modena, Italy; and develops and sells a line of apparel and accessories through its monobrand stores. As of December 31, 2021, it had a total of 30 retail Ferrari stores, including 14 franchised stores and 16 owned stores.

RACE (Ferrari N.V.) trades in the Consumer Cyclical sector, specifically Auto - Manufacturers, with a market capitalization of approximately $58.79B, a trailing P/E of 31.33, a beta of 0.59 versus the broader market, a 52-week range of 312.51-519.1, average daily share volume of 639K, a public-listing history dating back to 2015, approximately 5K full-time employees. These structural characteristics shape how RACE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.59 indicates RACE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. RACE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on RACE?

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 RACE snapshot

As of May 15, 2026, spot at $321.91, ATM IV 32.45%, IV rank 32.78%, expected move 9.30%. The covered call on RACE 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 28-day expiry.

Why this covered call structure on RACE specifically: RACE IV at 32.45% is mid-range versus its 1-year history, so the credit collected on a RACE covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 9.30% (roughly $29.95 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RACE expiries trade a higher absolute premium for lower per-day decay. Position sizing on RACE should anchor to the underlying notional of $321.91 per share and to the trader's directional view on RACE stock.

RACE covered call setup

The RACE 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 RACE near $321.91, the first option leg uses a $340.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RACE chain at a 28-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 RACE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$321.91	long
Sell 1	Call	$340.00	$5.85

RACE covered call risk and reward

Net Premium / Debit: -$31,606.00
Max Profit (per contract): $2,394.00
Max Loss (per contract): -$31,605.00
Breakeven(s): $316.06
Risk / Reward Ratio: 0.076

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.

RACE covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on RACE. 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%	-$31,605.00
$71.18	-77.9%	-$24,487.50
$142.36	-55.8%	-$17,370.01
$213.53	-33.7%	-$10,252.51
$284.71	-11.6%	-$3,135.01
$355.88	+10.6%	+$2,394.00
$427.06	+32.7%	+$2,394.00
$498.23	+54.8%	+$2,394.00
$569.41	+76.9%	+$2,394.00
$640.58	+99.0%	+$2,394.00

When traders use covered call on RACE

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

RACE thesis for this covered call

The market-implied 1-standard-deviation range for RACE extends from approximately $291.96 on the downside to $351.86 on the upside. A RACE covered call collects premium on an existing long RACE position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether RACE will breach that level within the expiration window. Current RACE IV rank near 32.78% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on RACE should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, RACE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RACE-specific events.

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

Frequently asked questions

What is a covered call on RACE?: A covered call on RACE is the covered call strategy applied to RACE (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 RACE stock trading near $321.91, the strikes shown on this page are snapped to the nearest listed RACE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RACE 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 RACE covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 32.45%), the computed maximum profit is $2,394.00 per contract and the computed maximum loss is -$31,605.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RACE covered call?: The breakeven for the RACE covered call priced on this page is roughly $316.06 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 RACE market-implied 1-standard-deviation expected move is approximately 9.30%; 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 RACE?: Covered calls on RACE are an income strategy run on existing RACE 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 RACE implied volatility affect this covered call?: RACE ATM IV is at 32.45% with IV rank near 32.78%, 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.