How are SGI 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 SGI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 41.60%), the computed maximum profit is $704.00 per contract and the computed maximum loss is -$7,295.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SGI covered call?

The breakeven for the SGI covered call priced on this page is roughly $72.96 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 SGI market-implied 1-standard-deviation expected move is approximately 11.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SGI implied volatility affect this covered call?

SGI ATM IV is at 41.60% with IV rank near 6.03%, 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.

SGI Covered Call Strategy

SGI (Somnigroup International Inc), in the Consumer Defensive sector, (Household & Personal Products industry), listed on NYSE.

Somnigroup International Inc., operating as Somni, leads the field in advanced sleep technology and holistic wellness solutions. They engineer groundbreaking products specifically designed to elevate sleep quality. Their approach seamlessly integrates scientifically validated methods, intelligent technology, and data-driven insights to optimize sleep patterns and foster overall well-being.

SGI (Somnigroup International Inc) trades in the Consumer Defensive sector, specifically Household & Personal Products, with a market capitalization of approximately $16.39B, a trailing P/E of 31.44, a beta of 1.21 versus the broader market, a 52-week range of 60.39-98.56, average daily share volume of 3.1M, a public-listing history dating back to 2018, approximately 12K full-time employees. These structural characteristics shape how SGI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.21 places SGI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SGI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on SGI?

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 SGI snapshot

As of June 30, 2026, spot at $78.16, ATM IV 41.60%, IV rank 6.03%, expected move 11.93%. The covered call on SGI 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 52-day expiry.

Why this covered call structure on SGI specifically: SGI IV at 41.60% is on the cheap side of its 1-year range, which means a premium-selling SGI covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 11.93% (roughly $9.32 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SGI expiries trade a higher absolute premium for lower per-day decay. Position sizing on SGI should anchor to the underlying notional of $78.16 per share and to the trader's directional view on SGI stock.

SGI covered call setup

The SGI 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 SGI near $78.16, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SGI chain at a 52-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 SGI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$78.16	long
Sell 1	Call	$80.00	$5.20

SGI covered call risk and reward

Net Premium / Debit: -$7,296.00
Max Profit (per contract): $704.00
Max Loss (per contract): -$7,295.00
Breakeven(s): $72.96
Risk / Reward Ratio: 0.097

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.

SGI covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on SGI. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$7,295.00
$17.29	-77.9%	-$5,566.95
$34.57	-55.8%	-$3,838.90
$51.85	-33.7%	-$2,110.85
$69.13	-11.6%	-$382.80
$86.41	+10.6%	+$704.00
$103.69	+32.7%	+$704.00
$120.97	+54.8%	+$704.00
$138.25	+76.9%	+$704.00
$155.53	+99.0%	+$704.00

When traders use covered call on SGI

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

SGI thesis for this covered call

The market-implied 1-standard-deviation range for SGI extends from approximately $68.84 on the downside to $87.48 on the upside. A SGI covered call collects premium on an existing long SGI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether SGI will breach that level within the expiration window. Current SGI IV rank near 6.03% 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 SGI at 41.60%. As a Consumer Defensive name, SGI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SGI-specific events.

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

Frequently asked questions

What is a covered call on SGI?: A covered call on SGI is the covered call strategy applied to SGI (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 SGI stock trading near $78.16, the strikes shown on this page are snapped to the nearest listed SGI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SGI 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 SGI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 41.60%), the computed maximum profit is $704.00 per contract and the computed maximum loss is -$7,295.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SGI covered call?: The breakeven for the SGI covered call priced on this page is roughly $72.96 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 SGI market-implied 1-standard-deviation expected move is approximately 11.93%; 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 SGI?: Covered calls on SGI are an income strategy run on existing SGI 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 SGI implied volatility affect this covered call?: SGI ATM IV is at 41.60% with IV rank near 6.03%, 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.