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 45.50%), the computed maximum profit is $894.00 per contract and the computed maximum loss is -$7,105.00 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 $71.06 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 13.04%; 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 45.50% with IV rank near 38.48%, 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 Energy sector, (Oil & Gas Midstream industry), listed on NYSE.

Teekay Tankers Ltd. provides marine transportation services to oil industries in Bermuda and internationally. The company offers voyage and time charter services; and offshore ship-to-ship transfer services of commodities primarily crude oil and refined oil products, as well as liquid gases and various other products. It also provides tanker commercial and technical management services. As of December 31, 2021, the company owned and leased 48 double-hull oil tankers, time-chartered in two Aframax tankers, and one LR2 tanker. Teekay Tankers Ltd. was incorporated in 2007 and is headquartered in Hamilton, Canada.

TNK (Teekay Tankers Ltd.) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $2.68B, a trailing P/E of 7.66, a beta of -0.23 versus the broader market, a 52-week range of 41.05-83.99, average daily share volume of 560K, 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 -0.23 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 7.66 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 May 15, 2026, spot at $77.16, ATM IV 45.50%, IV rank 38.48%, expected move 13.04%. 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 98-day expiry.

Why this covered call structure on TNK specifically: TNK IV at 45.50% 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 13.04% (roughly $10.07 on the underlying). The 98-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 $77.16 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 $77.16, 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 TNK chain at a 98-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	$77.16	long
Sell 1	Call	$80.00	$6.10

TNK covered call risk and reward

Net Premium / Debit: -$7,106.00
Max Profit (per contract): $894.00
Max Loss (per contract): -$7,105.00
Breakeven(s): $71.06
Risk / Reward Ratio: 0.126

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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$7,105.00
$17.07	-77.9%	-$5,399.06
$34.13	-55.8%	-$3,693.12
$51.19	-33.7%	-$1,987.18
$68.25	-11.6%	-$281.24
$85.31	+10.6%	+$894.00
$102.37	+32.7%	+$894.00
$119.43	+54.8%	+$894.00
$136.49	+76.9%	+$894.00
$153.54	+99.0%	+$894.00

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 $67.09 on the downside to $87.23 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 38.48% 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 Energy 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 Energy 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 $77.16, 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 45.50%), the computed maximum profit is $894.00 per contract and the computed maximum loss is -$7,105.00 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 $71.06 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 13.04%; 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 45.50% with IV rank near 38.48%, 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.