TEN Covered Call Strategy

TEN (Tsakos Energy Navigation Limited), in the Energy sector, (Oil & Gas Midstream industry), listed on NYSE.

Tsakos Energy Navigation Limited provides seaborne crude oil and petroleum product transportation services worldwide. The company offers marine transportation services for national, major, and other independent oil companies and refiners under long, medium, and short-term charters. It also operates a fleet of double-hull vessels, comprising of conventional tankers, LNG carriers, and suezmax DP2 shuttle tankers. The company was formerly known as MIF Limited and changed its name to Tsakos Energy Navigation Limited in July 2001. The company was incorporated in 1993 and is based in Athens, Greece.

TEN (Tsakos Energy Navigation Limited) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $1.29B, a trailing P/E of 6.51, a beta of -0.26 versus the broader market, a 52-week range of 17.14-44.57, average daily share volume of 499K, a public-listing history dating back to 2002, approximately 77 full-time employees. These structural characteristics shape how TEN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.26 indicates TEN 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 6.51 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. TEN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on TEN?

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 TEN snapshot

As of May 15, 2026, spot at $42.31, ATM IV 51.60%, IV rank 54.32%, expected move 14.79%. The covered call on TEN 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 TEN specifically: TEN IV at 51.60% is mid-range versus its 1-year history, so the credit collected on a TEN covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 14.79% (roughly $6.26 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 TEN expiries trade a higher absolute premium for lower per-day decay. Position sizing on TEN should anchor to the underlying notional of $42.31 per share and to the trader's directional view on TEN stock.

TEN covered call setup

The TEN 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 TEN near $42.31, the first option leg uses a $44.43 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TEN 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 TEN shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Buy 100 sharesStock$42.31long
Sell 1Call$44.43N/A

TEN covered call risk and reward

Net Premium / Debit
N/A
Max Profit (per contract)
Unbounded
Max Loss (per contract)
Unbounded
Breakeven(s)
None on modeled curve
Risk / Reward Ratio
N/A

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.

TEN covered call payoff curve

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

When traders use covered call on TEN

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

TEN thesis for this covered call

The market-implied 1-standard-deviation range for TEN extends from approximately $36.05 on the downside to $48.57 on the upside. A TEN covered call collects premium on an existing long TEN position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether TEN will breach that level within the expiration window. Current TEN IV rank near 54.32% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on TEN should anchor more to the directional view and the expected-move geometry. As a Energy name, TEN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TEN-specific events.

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

Frequently asked questions

What is a covered call on TEN?
A covered call on TEN is the covered call strategy applied to TEN (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 TEN stock trading near $42.31, the strikes shown on this page are snapped to the nearest listed TEN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TEN 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 TEN covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 51.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TEN covered call?
The breakeven for the TEN covered call priced on this page is no defined breakeven on the modeled curve 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 TEN market-implied 1-standard-deviation expected move is approximately 14.79%; 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 TEN?
Covered calls on TEN are an income strategy run on existing TEN 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 TEN implied volatility affect this covered call?
TEN ATM IV is at 51.60% with IV rank near 54.32%, 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.

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