How are TXRH 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 TXRH covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 24.16%), the computed maximum profit is $956.50 per contract and the computed maximum loss is -$17,542.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TXRH covered call?

The breakeven for the TXRH covered call priced on this page is roughly $175.44 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 TXRH market-implied 1-standard-deviation expected move is approximately 6.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TXRH implied volatility affect this covered call?

TXRH ATM IV is at 24.16% with IV rank near 31.10%, 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.

TXRH Covered Call Strategy

TXRH (Texas Roadhouse, Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NASDAQ.

Texas Roadhouse, Inc., together with its subsidiaries, operates casual dining restaurants in the United States and internationally. The company operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names. As of December 28, 2021, it operated 566 domestic restaurants and 101 franchise restaurants. Texas Roadhouse, Inc. was founded in 1993 and is based in Louisville, Kentucky.

TXRH (Texas Roadhouse, Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $11.79B, a trailing P/E of 28.46, a beta of 0.78 versus the broader market, a 52-week range of 153.83-199.99, average daily share volume of 1.1M, a public-listing history dating back to 2004, approximately 95K full-time employees. These structural characteristics shape how TXRH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.78 places TXRH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TXRH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on TXRH?

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 TXRH snapshot

As of May 15, 2026, spot at $177.81, ATM IV 24.16%, IV rank 31.10%, expected move 6.93%. The covered call on TXRH 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 TXRH specifically: TXRH IV at 24.16% is mid-range versus its 1-year history, so the credit collected on a TXRH covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 6.93% (roughly $12.32 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 TXRH expiries trade a higher absolute premium for lower per-day decay. Position sizing on TXRH should anchor to the underlying notional of $177.81 per share and to the trader's directional view on TXRH stock.

TXRH covered call setup

The TXRH 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 TXRH near $177.81, the first option leg uses a $185.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TXRH 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 TXRH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$177.81	long
Sell 1	Call	$185.00	$2.38

TXRH covered call risk and reward

Net Premium / Debit: -$17,543.50
Max Profit (per contract): $956.50
Max Loss (per contract): -$17,542.50
Breakeven(s): $175.44
Risk / Reward Ratio: 0.055

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.

TXRH covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on TXRH. 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%	-$17,542.50
$39.32	-77.9%	-$13,611.13
$78.64	-55.8%	-$9,679.77
$117.95	-33.7%	-$5,748.40
$157.26	-11.6%	-$1,817.03
$196.58	+10.6%	+$956.50
$235.89	+32.7%	+$956.50
$275.21	+54.8%	+$956.50
$314.52	+76.9%	+$956.50
$353.83	+99.0%	+$956.50

When traders use covered call on TXRH

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

TXRH thesis for this covered call

The market-implied 1-standard-deviation range for TXRH extends from approximately $165.49 on the downside to $190.13 on the upside. A TXRH covered call collects premium on an existing long TXRH position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether TXRH will breach that level within the expiration window. Current TXRH IV rank near 31.10% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on TXRH should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, TXRH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TXRH-specific events.

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

Frequently asked questions

What is a covered call on TXRH?: A covered call on TXRH is the covered call strategy applied to TXRH (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 TXRH stock trading near $177.81, the strikes shown on this page are snapped to the nearest listed TXRH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TXRH 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 TXRH covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 24.16%), the computed maximum profit is $956.50 per contract and the computed maximum loss is -$17,542.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TXRH covered call?: The breakeven for the TXRH covered call priced on this page is roughly $175.44 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 TXRH market-implied 1-standard-deviation expected move is approximately 6.93%; 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 TXRH?: Covered calls on TXRH are an income strategy run on existing TXRH 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 TXRH implied volatility affect this covered call?: TXRH ATM IV is at 24.16% with IV rank near 31.10%, 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.