How are STNG 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 STNG covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 43.50%), the computed maximum profit is $732.00 per contract and the computed maximum loss is -$8,017.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a STNG covered call?

The breakeven for the STNG covered call priced on this page is roughly $80.18 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 STNG market-implied 1-standard-deviation expected move is approximately 12.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current STNG implied volatility affect this covered call?

STNG ATM IV is at 43.50% with IV rank near 42.62%, 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.

STNG Covered Call Strategy

STNG (Scorpio Tankers Inc.), in the Energy sector, (Oil & Gas Midstream industry), listed on NYSE.

Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of refined petroleum products in the shipping markets worldwide. As of March 18, 2022, the company's fleet consisted of 124 owned, finance leased, or bareboat chartered-in tankers, including 42 LR2, 6 LR1, 62 MR, and 14 Handymax with a weighted average age of approximately 6.2 years. Scorpio Tankers Inc. was incorporated in 2009 and is based in Monaco.

STNG (Scorpio Tankers Inc.) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $4.25B, a trailing P/E of 7.72, a beta of -0.25 versus the broader market, a 52-week range of 37.96-87.39, average daily share volume of 1.3M, a public-listing history dating back to 2010, approximately 24 full-time employees. These structural characteristics shape how STNG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.25 indicates STNG 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 7.72 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. STNG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on STNG?

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 STNG snapshot

As of May 15, 2026, spot at $82.28, ATM IV 43.50%, IV rank 42.62%, expected move 12.47%. The covered call on STNG 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 STNG specifically: STNG IV at 43.50% is mid-range versus its 1-year history, so the credit collected on a STNG covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 12.47% (roughly $10.26 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 STNG expiries trade a higher absolute premium for lower per-day decay. Position sizing on STNG should anchor to the underlying notional of $82.28 per share and to the trader's directional view on STNG stock.

STNG covered call setup

The STNG 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 STNG near $82.28, the first option leg uses a $87.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STNG 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 STNG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$82.28	long
Sell 1	Call	$87.50	$2.10

STNG covered call risk and reward

Net Premium / Debit: -$8,018.00
Max Profit (per contract): $732.00
Max Loss (per contract): -$8,017.00
Breakeven(s): $80.18
Risk / Reward Ratio: 0.091

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.

STNG covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on STNG. 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%	-$8,017.00
$18.20	-77.9%	-$6,197.85
$36.39	-55.8%	-$4,378.71
$54.58	-33.7%	-$2,559.56
$72.78	-11.6%	-$740.42
$90.97	+10.6%	+$732.00
$109.16	+32.7%	+$732.00
$127.35	+54.8%	+$732.00
$145.54	+76.9%	+$732.00
$163.73	+99.0%	+$732.00

When traders use covered call on STNG

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

STNG thesis for this covered call

The market-implied 1-standard-deviation range for STNG extends from approximately $72.02 on the downside to $92.54 on the upside. A STNG covered call collects premium on an existing long STNG position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether STNG will breach that level within the expiration window. Current STNG IV rank near 42.62% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on STNG should anchor more to the directional view and the expected-move geometry. As a Energy name, STNG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STNG-specific events.

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

Frequently asked questions

What is a covered call on STNG?: A covered call on STNG is the covered call strategy applied to STNG (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 STNG stock trading near $82.28, the strikes shown on this page are snapped to the nearest listed STNG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are STNG 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 STNG covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 43.50%), the computed maximum profit is $732.00 per contract and the computed maximum loss is -$8,017.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a STNG covered call?: The breakeven for the STNG covered call priced on this page is roughly $80.18 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 STNG market-implied 1-standard-deviation expected move is approximately 12.47%; 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 STNG?: Covered calls on STNG are an income strategy run on existing STNG 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 STNG implied volatility affect this covered call?: STNG ATM IV is at 43.50% with IV rank near 42.62%, 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.