RACE Covered Call Strategy
RACE (Ferrari N.V.), in the Consumer Cyclical sector, (Auto - Manufacturers industry), listed on NYSE.
Ferrari N.V. is a renowned automotive manufacturer primarily engaged in the creation, engineering, production, and sale of an exclusive range of high-performance luxury automobiles. Its extensive vehicle lineup features diverse models, including traditional sports cars, Grand Tourers (GTs), specialized series editions, ultra-exclusive limited-edition hypercars, bespoke one-off vehicles, track-specific designs, and its distinctive Icona series. Beyond car manufacturing, the company also supplies motorsport vehicles, essential components like spare parts and engines, and delivers comprehensive after-sales services such as vehicle repair, maintenance, and restoration. Expanding its brand influence, Ferrari N.V. strategically licenses its iconic marque to various producers and retailers of upscale lifestyle merchandise. This also extends to prominent leisure destinations, including the Ferrari World theme park in Abu Dhabi, UAE, and Ferrari Land Portaventura in Europe. The company further diversifies its operations by offering direct and indirect financing and leasing solutions to both individual customers and dealership partners.
RACE (Ferrari N.V.) trades in the Consumer Cyclical sector, specifically Auto - Manufacturers, with a market capitalization of approximately $65.02B, a trailing P/E of 35.65, a beta of 0.60 versus the broader market, a 52-week range of 312.51-519.1, average daily share volume of 640K, 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 0.60 indicates RACE 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 35.65 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. 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 June 29, 2026, spot at $368.82, ATM IV 36.20%, IV rank 44.11%, expected move 10.38%. 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 32-day expiry.
Why this covered call structure on RACE specifically: RACE IV at 36.20% 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 10.38% (roughly $38.27 on the underlying). The 32-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 $368.82 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 $368.82, the first option leg uses a $385.00 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 32-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 | $368.82 | long |
| Sell 1 | Call | $385.00 | $10.75 |
RACE covered call risk and reward
- Net Premium / Debit
- -$35,807.00
- Max Profit (per contract)
- $2,693.00
- Max Loss (per contract)
- -$35,806.00
- Breakeven(s)
- $358.07
- Risk / Reward Ratio
- 0.075
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% | -$35,806.00 |
| $81.56 | -77.9% | -$27,651.30 |
| $163.10 | -55.8% | -$19,496.59 |
| $244.65 | -33.7% | -$11,341.89 |
| $326.20 | -11.6% | -$3,187.19 |
| $407.75 | +10.6% | +$2,693.00 |
| $489.29 | +32.7% | +$2,693.00 |
| $570.84 | +54.8% | +$2,693.00 |
| $652.39 | +76.9% | +$2,693.00 |
| $733.93 | +99.0% | +$2,693.00 |
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 $330.55 on the downside to $407.09 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 44.11% 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 $368.82, 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 36.20%), the computed maximum profit is $2,693.00 per contract and the computed maximum loss is -$35,806.00 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 $358.07 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 10.38%; 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 36.20% with IV rank near 44.11%, 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.