How are TNK 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 TNK covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 41.90%), the computed maximum profit is $742.50 per contract and the computed maximum loss is -$6,156.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TNK covered call?

The breakeven for the TNK covered call priced on this page is roughly $61.58 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 TNK market-implied 1-standard-deviation expected move is approximately 12.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TNK implied volatility affect this covered call?

TNK ATM IV is at 41.90% with IV rank near 30.83%, 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.

TNK Covered Call Strategy

TNK (Teekay Tankers Ltd.), in the Industrials sector, (Marine Shipping industry), listed on NYSE.

Teekay Tankers Ltd. specializes in providing essential marine transportation solutions to the global oil industry, with its operations spanning Bermuda and international waters. The company's service offerings encompass both voyage and time charter arrangements, alongside specialized offshore ship-to-ship transfer operations for a diverse range of commodities. These primarily include crude oil and refined petroleum products, but also extend to liquid gases and various other specialized cargo. Beyond shipping, Teekay Tankers Ltd. further extends its expertise to include comprehensive commercial and technical management services for tankers. As of December 31, 2021, the company operated a substantial fleet, comprising 48 owned and leased double-hull oil tankers. This is supplemented by two Aframax tankers and a single LR2 tanker, all acquired via time charter agreements.

TNK (Teekay Tankers Ltd.) trades in the Industrials sector, specifically Marine Shipping, with a market capitalization of approximately $2.36B, a trailing P/E of 5.51, a beta of -0.27 versus the broader market, a 52-week range of 41.05-83.99, average daily share volume of 431K, a public-listing history dating back to 2007, approximately 2K full-time employees. These structural characteristics shape how TNK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.27 indicates TNK 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 5.51 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. TNK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on TNK?

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 TNK snapshot

As of June 30, 2026, spot at $64.80, ATM IV 41.90%, IV rank 30.83%, expected move 12.01%. The covered call on TNK 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 52-day expiry.

Why this covered call structure on TNK specifically: TNK IV at 41.90% is mid-range versus its 1-year history, so the credit collected on a TNK covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 12.01% (roughly $7.78 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TNK expiries trade a higher absolute premium for lower per-day decay. Position sizing on TNK should anchor to the underlying notional of $64.80 per share and to the trader's directional view on TNK stock.

TNK covered call setup

The TNK 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 TNK near $64.80, the first option leg uses a $69.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TNK chain at a 52-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 TNK shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$64.80	long
Sell 1	Call	$69.00	$3.23

TNK covered call risk and reward

Net Premium / Debit: -$6,157.50
Max Profit (per contract): $742.50
Max Loss (per contract): -$6,156.50
Breakeven(s): $61.58
Risk / Reward Ratio: 0.121

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.

TNK covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on TNK. 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%	-$6,156.50
$14.34	-77.9%	-$4,723.85
$28.66	-55.8%	-$3,291.19
$42.99	-33.7%	-$1,858.54
$57.32	-11.5%	-$425.89
$71.64	+10.6%	+$742.50
$85.97	+32.7%	+$742.50
$100.30	+54.8%	+$742.50
$114.62	+76.9%	+$742.50
$128.95	+99.0%	+$742.50

When traders use covered call on TNK

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

TNK thesis for this covered call

The market-implied 1-standard-deviation range for TNK extends from approximately $57.02 on the downside to $72.58 on the upside. A TNK covered call collects premium on an existing long TNK position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether TNK will breach that level within the expiration window. Current TNK IV rank near 30.83% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on TNK should anchor more to the directional view and the expected-move geometry. As a Industrials name, TNK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TNK-specific events.

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

Frequently asked questions

What is a covered call on TNK?: A covered call on TNK is the covered call strategy applied to TNK (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 TNK stock trading near $64.80, the strikes shown on this page are snapped to the nearest listed TNK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TNK 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 TNK covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 41.90%), the computed maximum profit is $742.50 per contract and the computed maximum loss is -$6,156.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TNK covered call?: The breakeven for the TNK covered call priced on this page is roughly $61.58 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 TNK market-implied 1-standard-deviation expected move is approximately 12.01%; 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 TNK?: Covered calls on TNK are an income strategy run on existing TNK 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 TNK implied volatility affect this covered call?: TNK ATM IV is at 41.90% with IV rank near 30.83%, 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.