How are STNE 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 STNE covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 49.80%), the computed maximum profit is $83.00 per contract and the computed maximum loss is -$1,063.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a STNE covered call?

The breakeven for the STNE covered call priced on this page is roughly $10.64 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 STNE market-implied 1-standard-deviation expected move is approximately 14.28%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current STNE implied volatility affect this covered call?

STNE ATM IV is at 49.80% with IV rank near 22.89%, 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.

STNE Covered Call Strategy

STNE (StoneCo Ltd.), in the Technology sector, (Software - Application industry), listed on NASDAQ.

StoneCo Ltd. provides financial technology and software solutions to merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil. The company offers financial services, including payment, prepayment, digital banking, and credit solutions. It distributes its solutions, principally through proprietary and franchised Stone Hubs, which offer hyper-local sales and services; and sells solutions to brick-and-mortar and digital merchants through sales team. The company served small-and-medium-sized businesses; and marketplaces, e-commerce platforms, and integrated software vendors. StoneCo Ltd. was founded in 2012 and is based in George Town, the Cayman Islands.

STNE (StoneCo Ltd.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $2.67B, a trailing P/E of 4.06, a beta of 1.60 versus the broader market, a 52-week range of 9.45-19.95, average daily share volume of 5.7M, a public-listing history dating back to 2018, approximately 15K full-time employees. These structural characteristics shape how STNE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.60 indicates STNE has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 4.06 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. STNE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on STNE?

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 STNE snapshot

As of June 30, 2026, spot at $10.84, ATM IV 49.80%, IV rank 22.89%, expected move 14.28%. The covered call on STNE 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 17-day expiry.

Why this covered call structure on STNE specifically: STNE IV at 49.80% is on the cheap side of its 1-year range, which means a premium-selling STNE covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 14.28% (roughly $1.55 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated STNE expiries trade a higher absolute premium for lower per-day decay. Position sizing on STNE should anchor to the underlying notional of $10.84 per share and to the trader's directional view on STNE stock.

STNE covered call setup

The STNE 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 STNE near $10.84, the first option leg uses a $11.47 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STNE chain at a 17-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 STNE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$10.84	long
Sell 1	Call	$11.47	$0.20

STNE covered call risk and reward

Net Premium / Debit: -$1,064.00
Max Profit (per contract): $83.00
Max Loss (per contract): -$1,063.00
Breakeven(s): $10.64
Risk / Reward Ratio: 0.078

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.

STNE covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on STNE. 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	-99.9%	-$1,063.00
$2.41	-77.8%	-$823.43
$4.80	-55.7%	-$583.86
$7.20	-33.6%	-$344.30
$9.59	-11.5%	-$104.73
$11.99	+10.6%	+$83.00
$14.38	+32.7%	+$83.00
$16.78	+54.8%	+$83.00
$19.18	+76.9%	+$83.00
$21.57	+99.0%	+$83.00

When traders use covered call on STNE

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

STNE thesis for this covered call

The market-implied 1-standard-deviation range for STNE extends from approximately $9.29 on the downside to $12.39 on the upside. A STNE covered call collects premium on an existing long STNE position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether STNE will breach that level within the expiration window. Current STNE IV rank near 22.89% 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 STNE at 49.80%. As a Technology name, STNE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STNE-specific events.

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

Frequently asked questions

What is a covered call on STNE?: A covered call on STNE is the covered call strategy applied to STNE (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 STNE stock trading near $10.84, the strikes shown on this page are snapped to the nearest listed STNE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are STNE 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 STNE covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 49.80%), the computed maximum profit is $83.00 per contract and the computed maximum loss is -$1,063.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a STNE covered call?: The breakeven for the STNE covered call priced on this page is roughly $10.64 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 STNE market-implied 1-standard-deviation expected move is approximately 14.28%; 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 STNE?: Covered calls on STNE are an income strategy run on existing STNE 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 STNE implied volatility affect this covered call?: STNE ATM IV is at 49.80% with IV rank near 22.89%, 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.