How are TJX 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 TJX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 28.21%), the computed maximum profit is $955.00 per contract and the computed maximum loss is -$14,544.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TJX covered call?

The breakeven for the TJX covered call priced on this page is roughly $145.45 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 TJX market-implied 1-standard-deviation expected move is approximately 8.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TJX implied volatility affect this covered call?

TJX ATM IV is at 28.21% with IV rank near 89.25%, 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.

TJX Covered Call Strategy

TJX (The TJX Companies, Inc.), in the Consumer Cyclical sector, (Apparel - Retail industry), listed on NYSE.

The TJX Companies, Inc., together with its subsidiaries, operates as an off-price apparel and home fashions retailer. It operates through four segments: Marmaxx, HomeGoods, TJX Canada, and TJX International. The company sells family apparel, including footwear and accessories; home fashions, such as home basics, furniture, rugs, lighting products, giftware, soft home products, decorative accessories, tabletop, and cookware, as well as expanded pet, kids, and gourmet food departments; jewelry and accessories; and other merchandise. As of February 23, 2022, it operated 1,284 T.J. Maxx, 1,148 Marshalls, 850 HomeGoods, 59 Sierra, and 39 Homesense stores, as well as tjmaxx.com, marshalls.com, and sierra.com in the United States; 293 Winners, 147 HomeSense, and 106 Marshalls stores in Canada; 618 T.K. Maxx and 77 Homesense stores, as well as tkmaxx.com in Europe; and 68 T.K.

TJX (The TJX Companies, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Retail, with a market capitalization of approximately $162.73B, a trailing P/E of 30.11, a beta of 0.64 versus the broader market, a 52-week range of 119.84-165.82, average daily share volume of 5.0M, a public-listing history dating back to 1987, approximately 364K full-time employees. These structural characteristics shape how TJX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.64 indicates TJX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. TJX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on TJX?

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 TJX snapshot

As of May 14, 2026, spot at $147.45, ATM IV 28.21%, IV rank 89.25%, expected move 8.09%. The covered call on TJX 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 28-day expiry.

Why this covered call structure on TJX specifically: TJX IV at 28.21% is rich versus its 1-year range, which favors premium-selling structures like a TJX covered call, with a market-implied 1-standard-deviation move of approximately 8.09% (roughly $11.93 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TJX expiries trade a higher absolute premium for lower per-day decay. Position sizing on TJX should anchor to the underlying notional of $147.45 per share and to the trader's directional view on TJX stock.

TJX covered call setup

The TJX 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 TJX near $147.45, the first option leg uses a $155.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TJX chain at a 28-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 TJX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$147.45	long
Sell 1	Call	$155.00	$2.00

TJX covered call risk and reward

Net Premium / Debit: -$14,545.00
Max Profit (per contract): $955.00
Max Loss (per contract): -$14,544.00
Breakeven(s): $145.45
Risk / Reward Ratio: 0.066

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.

TJX covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on TJX. 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%	-$14,544.00
$32.61	-77.9%	-$11,283.91
$65.21	-55.8%	-$8,023.82
$97.81	-33.7%	-$4,763.73
$130.41	-11.6%	-$1,503.64
$163.01	+10.6%	+$955.00
$195.62	+32.7%	+$955.00
$228.22	+54.8%	+$955.00
$260.82	+76.9%	+$955.00
$293.42	+99.0%	+$955.00

When traders use covered call on TJX

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

TJX thesis for this covered call

The market-implied 1-standard-deviation range for TJX extends from approximately $135.52 on the downside to $159.38 on the upside. A TJX covered call collects premium on an existing long TJX position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether TJX will breach that level within the expiration window. Current TJX IV rank near 89.25% 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 TJX at 28.21%. As a Consumer Cyclical name, TJX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TJX-specific events.

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

Frequently asked questions

What is a covered call on TJX?: A covered call on TJX is the covered call strategy applied to TJX (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 TJX stock trading near $147.45, the strikes shown on this page are snapped to the nearest listed TJX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TJX 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 TJX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 28.21%), the computed maximum profit is $955.00 per contract and the computed maximum loss is -$14,544.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TJX covered call?: The breakeven for the TJX covered call priced on this page is roughly $145.45 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 TJX market-implied 1-standard-deviation expected move is approximately 8.09%; 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 TJX?: Covered calls on TJX are an income strategy run on existing TJX 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 TJX implied volatility affect this covered call?: TJX ATM IV is at 28.21% with IV rank near 89.25%, 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.