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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.34%), the computed maximum profit is $1,013.50 per contract and the computed maximum loss is -$20,485.50 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 $204.87 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The TXRH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.98%; 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 24.34% with IV rank near 28.02%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

TXRH Covered Call Strategy

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

Texas Roadhouse, Inc., through its various subsidiaries, is actively engaged in the casual dining sector, managing restaurants both within the United States and on a global scale. The company's portfolio encompasses establishments operating under its proprietary brands, which include Texas Roadhouse, Bubba's 33, and Jaggers, all of which it either directly runs or licenses to franchisees. By December 28, 2021, the firm reported overseeing 566 company-operated restaurants in the U.S., complemented by 101 franchised locations. Founded in 1993, Texas Roadhouse, Inc. maintains its corporate base in Louisville, Kentucky.

TXRH (Texas Roadhouse, Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $13.61B, a trailing P/E of 32.93, a beta of 0.80 versus the broader market, a 52-week range of 153.83-216.3, average daily share volume of 1.1M, a public-listing history dating back to 2004, approximately 101K 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 0.80 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.

TXRH snapshot

As of August 14, 2026, spot at $207.14, ATM IV 24.34%, IV rank 28.02%, expected move 6.98%. The covered call on TXRH below is built from the August 14, 2026 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 24.34% is on the cheap side of its 1-year range, which means a premium-selling TXRH covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 6.98% (roughly $14.45 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 $207.14 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 August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With TXRH at $207.14 on that close, the first option leg uses a $215.00 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	$207.14	long
Sell 1	Call	$215.00	$2.28

TXRH covered call risk and reward

Net Premium / Debit: -$20,486.50
Max Profit (per contract): $1,013.50
Max Loss (per contract): -$20,485.50
Breakeven(s): $204.87
Risk / Reward Ratio: 0.049

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.

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%	-$20,485.50
$45.81	-77.9%	-$15,905.63
$91.61	-55.8%	-$11,325.76
$137.41	-33.7%	-$6,745.89
$183.20	-11.6%	-$2,166.02
$229.00	+10.6%	+$1,013.50
$274.80	+32.7%	+$1,013.50
$320.60	+54.8%	+$1,013.50
$366.40	+76.9%	+$1,013.50
$412.20	+99.0%	+$1,013.50

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 $192.69 on the downside to $221.59 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 28.02% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on TXRH at 24.34%. 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 at $207.14 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed TXRH chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.34%), the computed maximum profit is $1,013.50 per contract and the computed maximum loss is -$20,485.50 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 $204.87 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The TXRH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.98%; 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 24.34% with IV rank near 28.02%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.