How are THO 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 THO covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 56.70%), the computed maximum profit is $882.00 per contract and the computed maximum loss is -$7,117.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a THO covered call?

The breakeven for the THO covered call priced on this page is roughly $71.18 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 THO market-implied 1-standard-deviation expected move is approximately 16.26%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current THO implied volatility affect this covered call?

THO ATM IV is at 56.70% with IV rank near 76.64%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

THO Covered Call Strategy

THO (Thor Industries, Inc.), in the Consumer Cyclical sector, (Auto - Recreational Vehicles industry), listed on NYSE.

Thor Industries, Inc. designs, manufactures, and sells recreational vehicles (RVs), and related parts and accessories in the United States, Canada, and Europe. The company offers travel trailers; gasoline and diesel Class A, Class B, and Class C motorhomes; conventional travel trailers and fifth wheels; luxury fifth wheels; and motorcaravans, caravans, campervans, and urban vehicles. It also provides aluminum extrusion and specialized component products to RV and other manufacturers; and digital products and services for RVs. The company provides its products through independent and non-franchise dealers. The company was founded in 1980 and is based in Elkhart, Indiana.

THO (Thor Industries, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Recreational Vehicles, with a market capitalization of approximately $3.94B, a trailing P/E of 13.13, a beta of 1.34 versus the broader market, a 52-week range of 72.82-122.83, average daily share volume of 773K, a public-listing history dating back to 1984, approximately 22K full-time employees. These structural characteristics shape how THO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.34 indicates THO has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. THO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on THO?

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 THO snapshot

As of May 15, 2026, spot at $74.08, ATM IV 56.70%, IV rank 76.64%, expected move 16.26%. The covered call on THO 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 THO specifically: THO IV at 56.70% is rich versus its 1-year range, which favors premium-selling structures like a THO covered call, with a market-implied 1-standard-deviation move of approximately 16.26% (roughly $12.04 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 THO expiries trade a higher absolute premium for lower per-day decay. Position sizing on THO should anchor to the underlying notional of $74.08 per share and to the trader's directional view on THO stock.

THO covered call setup

The THO 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 THO near $74.08, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed THO 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 THO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$74.08	long
Sell 1	Call	$80.00	$2.90

THO covered call risk and reward

Net Premium / Debit: -$7,118.00
Max Profit (per contract): $882.00
Max Loss (per contract): -$7,117.00
Breakeven(s): $71.18
Risk / Reward Ratio: 0.124

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.

THO covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on THO. 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%	-$7,117.00
$16.39	-77.9%	-$5,479.16
$32.77	-55.8%	-$3,841.32
$49.15	-33.7%	-$2,203.48
$65.52	-11.6%	-$565.64
$81.90	+10.6%	+$882.00
$98.28	+32.7%	+$882.00
$114.66	+54.8%	+$882.00
$131.04	+76.9%	+$882.00
$147.42	+99.0%	+$882.00

When traders use covered call on THO

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

THO thesis for this covered call

The market-implied 1-standard-deviation range for THO extends from approximately $62.04 on the downside to $86.12 on the upside. A THO covered call collects premium on an existing long THO position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether THO will breach that level within the expiration window. Current THO IV rank near 76.64% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on THO at 56.70%. As a Consumer Cyclical name, THO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to THO-specific events.

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

Frequently asked questions

What is a covered call on THO?: A covered call on THO is the covered call strategy applied to THO (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 THO stock trading near $74.08, the strikes shown on this page are snapped to the nearest listed THO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are THO 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 THO covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 56.70%), the computed maximum profit is $882.00 per contract and the computed maximum loss is -$7,117.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a THO covered call?: The breakeven for the THO covered call priced on this page is roughly $71.18 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 THO market-implied 1-standard-deviation expected move is approximately 16.26%; 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 THO?: Covered calls on THO are an income strategy run on existing THO 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 THO implied volatility affect this covered call?: THO ATM IV is at 56.70% with IV rank near 76.64%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.