SITE Covered Call Strategy
SITE (SiteOne Landscape Supply, Inc.), in the Industrials sector, (Industrial - Distribution industry), listed on NYSE.
SiteOne Landscape Supply, Inc. engages in the wholesale distribution of landscape supplies in the United States and Canada. The company provides a selection of approximately 135,000 stock keeping units, including irrigation supplies, which comprise controllers, valves, sprinkler heads, and irrigation pipes; fertilizer, grass seed, and ice melt products; control products, such as herbicides, fungicides, rodenticides, and other pesticides; landscape accessories that include mulches, soil amendments, drainage pipes, tools, and sods; nursery goods, which consist of deciduous and evergreen shrubs, ornamental, shade, evergreen trees, field grown and container-grown nursery stock, roses, perennials, annuals, bulbs, and plant species; hardscapes, such as pavers, natural stones, blocks, and other durable materials; and outdoor lighting products that include lighting fixtures, LED lamps, wires, transformers, and accessories. It also offers consultative services consisting of assistance with irrigation network design, commercial project planning, generation of sales leads, business operations, product support services, and a series of technical and business management seminars; and distributes branded products of third parties. The company offers its products under the LESCO, SiteOne Green Tech, and Pro-Trade brand names. It markets its products primarily to residential and commercial landscape professionals who specialize in the design, installation, and maintenance of lawns, gardens, golf courses, and other outdoor spaces through branch network and direct distribution. As of January 2, 2022, the company had approximately 590 branches in 45 U.S.
SITE (SiteOne Landscape Supply, Inc.) trades in the Industrials sector, specifically Industrial - Distribution, with a market capitalization of approximately $5.23B, a trailing P/E of 34.52, a beta of 1.42 versus the broader market, a 52-week range of 112.23-168.56, average daily share volume of 713K, a public-listing history dating back to 2016, approximately 8K full-time employees. These structural characteristics shape how SITE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.42 indicates SITE has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a covered call on SITE?
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 SITE snapshot
As of May 15, 2026, spot at $118.12, ATM IV 41.80%, IV rank 51.72%, expected move 11.98%. The covered call on SITE 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 SITE specifically: SITE IV at 41.80% is mid-range versus its 1-year history, so the credit collected on a SITE covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 11.98% (roughly $14.16 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 SITE expiries trade a higher absolute premium for lower per-day decay. Position sizing on SITE should anchor to the underlying notional of $118.12 per share and to the trader's directional view on SITE stock.
SITE covered call setup
The SITE 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 SITE near $118.12, the first option leg uses a $125.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SITE 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 SITE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $118.12 | long |
| Sell 1 | Call | $125.00 | $4.13 |
SITE covered call risk and reward
- Net Premium / Debit
- -$11,399.50
- Max Profit (per contract)
- $1,100.50
- Max Loss (per contract)
- -$11,398.50
- Breakeven(s)
- $114.00
- 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.
SITE covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on SITE. 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% | -$11,398.50 |
| $26.13 | -77.9% | -$8,786.91 |
| $52.24 | -55.8% | -$6,175.32 |
| $78.36 | -33.7% | -$3,563.74 |
| $104.47 | -11.6% | -$952.15 |
| $130.59 | +10.6% | +$1,100.50 |
| $156.71 | +32.7% | +$1,100.50 |
| $182.82 | +54.8% | +$1,100.50 |
| $208.94 | +76.9% | +$1,100.50 |
| $235.05 | +99.0% | +$1,100.50 |
When traders use covered call on SITE
Covered calls on SITE are an income strategy run on existing SITE stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
SITE thesis for this covered call
The market-implied 1-standard-deviation range for SITE extends from approximately $103.96 on the downside to $132.28 on the upside. A SITE covered call collects premium on an existing long SITE position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether SITE will breach that level within the expiration window. Current SITE IV rank near 51.72% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on SITE should anchor more to the directional view and the expected-move geometry. As a Industrials name, SITE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SITE-specific events.
SITE 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. SITE positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SITE alongside the broader basket even when SITE-specific fundamentals are unchanged. Short-premium structures like a covered call on SITE carry tail risk when realized volatility exceeds the implied move; review historical SITE earnings reactions and macro stress periods before sizing. Always rebuild the position from current SITE chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on SITE?
- A covered call on SITE is the covered call strategy applied to SITE (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 SITE stock trading near $118.12, the strikes shown on this page are snapped to the nearest listed SITE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SITE 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 SITE covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 41.80%), the computed maximum profit is $1,100.50 per contract and the computed maximum loss is -$11,398.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SITE covered call?
- The breakeven for the SITE covered call priced on this page is roughly $114.00 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 SITE market-implied 1-standard-deviation expected move is approximately 11.98%; 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 SITE?
- Covered calls on SITE are an income strategy run on existing SITE 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 SITE implied volatility affect this covered call?
- SITE ATM IV is at 41.80% with IV rank near 51.72%, 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.