How are TFX 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 TFX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 35.50%), the computed maximum profit is $948.00 per contract and the computed maximum loss is -$12,551.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TFX covered call?

The breakeven for the TFX covered call priced on this page is roughly $125.52 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 TFX market-implied 1-standard-deviation expected move is approximately 10.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TFX implied volatility affect this covered call?

TFX ATM IV is at 35.50% with IV rank near 3.86%, 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.

TFX Covered Call Strategy

TFX (Teleflex Incorporated), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NYSE.

Teleflex Incorporated is a global medical technology company dedicated to designing, developing, manufacturing, and distributing single-use medical devices. These products are crucial for diagnostic and therapeutic procedures, particularly within critical care and surgical environments worldwide. Its comprehensive product portfolio includes: Vascular Access Solutions: Featuring the "Arrow" brand, these include catheters, advanced catheter navigation and tip positioning systems, and intraosseous access systems. They are essential for administering intravenous therapies, monitoring blood pressure, and drawing blood samples, all achievable through a single access point. Interventional Cardiology & Radiology Products: This segment covers various coronary catheters, therapies for structural heart conditions, and devices for peripheral intervention and cardiac assist. Key users include interventional cardiologists, radiologists, and vascular surgeons.

TFX (Teleflex Incorporated) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $5.75B, a beta of 0.82 versus the broader market, a 52-week range of 100.18-139.67, average daily share volume of 761K, a public-listing history dating back to 1980, approximately 14K full-time employees. These structural characteristics shape how TFX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.82 places TFX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TFX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on TFX?

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 TFX snapshot

As of June 30, 2026, spot at $126.97, ATM IV 35.50%, IV rank 3.86%, expected move 10.18%. The covered call on TFX 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 TFX specifically: TFX IV at 35.50% is on the cheap side of its 1-year range, which means a premium-selling TFX covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 10.18% (roughly $12.92 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 TFX expiries trade a higher absolute premium for lower per-day decay. Position sizing on TFX should anchor to the underlying notional of $126.97 per share and to the trader's directional view on TFX stock.

TFX covered call setup

The TFX 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 TFX near $126.97, the first option leg uses a $135.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TFX 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 TFX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$126.97	long
Sell 1	Call	$135.00	$1.45

TFX covered call risk and reward

Net Premium / Debit: -$12,552.00
Max Profit (per contract): $948.00
Max Loss (per contract): -$12,551.00
Breakeven(s): $125.52
Risk / Reward Ratio: 0.076

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.

TFX covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on TFX. 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%	-$12,551.00
$28.08	-77.9%	-$9,743.73
$56.16	-55.8%	-$6,936.47
$84.23	-33.7%	-$4,129.20
$112.30	-11.6%	-$1,321.93
$140.37	+10.6%	+$948.00
$168.45	+32.7%	+$948.00
$196.52	+54.8%	+$948.00
$224.59	+76.9%	+$948.00
$252.66	+99.0%	+$948.00

When traders use covered call on TFX

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

TFX thesis for this covered call

The market-implied 1-standard-deviation range for TFX extends from approximately $114.05 on the downside to $139.89 on the upside. A TFX covered call collects premium on an existing long TFX position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether TFX will breach that level within the expiration window. Current TFX IV rank near 3.86% 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 TFX at 35.50%. As a Healthcare name, TFX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TFX-specific events.

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

Frequently asked questions

What is a covered call on TFX?: A covered call on TFX is the covered call strategy applied to TFX (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 TFX stock trading near $126.97, the strikes shown on this page are snapped to the nearest listed TFX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TFX 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 TFX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 35.50%), the computed maximum profit is $948.00 per contract and the computed maximum loss is -$12,551.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TFX covered call?: The breakeven for the TFX covered call priced on this page is roughly $125.52 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 TFX market-implied 1-standard-deviation expected move is approximately 10.18%; 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 TFX?: Covered calls on TFX are an income strategy run on existing TFX 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 TFX implied volatility affect this covered call?: TFX ATM IV is at 35.50% with IV rank near 3.86%, 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.