How are UEC 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 UEC covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 86.47%), the computed maximum profit is $182.50 per contract and the computed maximum loss is -$1,266.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a UEC covered call?

The breakeven for the UEC covered call priced on this page is roughly $12.68 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 UEC market-implied 1-standard-deviation expected move is approximately 24.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current UEC implied volatility affect this covered call?

UEC ATM IV is at 86.47% with IV rank near 54.27%, 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.

UEC Covered Call Strategy

UEC (Uranium Energy Corp.), in the Energy sector, (Uranium industry), listed on AMEX.

Uranium Energy Corp., together with its subsidiaries, engages in exploration, pre-extraction, extraction, and processing uranium and titanium concentrates in the United States, Canada, and Paraguay. It owns interests in the Palangana mine, Goliad, Burke Hollow, Longhorn, and Salvo projects located in Texas; Anderson, Workman Creek, and Los Cuatros projects situated in Arizona; Slick Rock project in Colorado; Reno Creek project in Wyoming; Diabase project located in Canada; and Yuty, Oviedo, and Alto Paraná titanium projects in Paraguay. The company was formerly known as Carlin Gold Inc. and changed its name to Uranium Energy Corp. in January 2005. Uranium Energy Corp. was incorporated in 2003 and is based in Corpus Christi, Texas.

UEC (Uranium Energy Corp.) trades in the Energy sector, specifically Uranium, with a market capitalization of approximately $7.53B, a beta of 1.18 versus the broader market, a 52-week range of 5.03-20.34, average daily share volume of 9.2M, a public-listing history dating back to 2007, approximately 94 full-time employees. These structural characteristics shape how UEC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.18 places UEC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a covered call on UEC?

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 UEC snapshot

As of May 15, 2026, spot at $13.77, ATM IV 86.47%, IV rank 54.27%, expected move 24.79%. The covered call on UEC 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 UEC specifically: UEC IV at 86.47% is mid-range versus its 1-year history, so the credit collected on a UEC covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 24.79% (roughly $3.41 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 UEC expiries trade a higher absolute premium for lower per-day decay. Position sizing on UEC should anchor to the underlying notional of $13.77 per share and to the trader's directional view on UEC stock.

UEC covered call setup

The UEC 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 UEC near $13.77, the first option leg uses a $14.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UEC 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 UEC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$13.77	long
Sell 1	Call	$14.50	$1.10

UEC covered call risk and reward

Net Premium / Debit: -$1,267.50
Max Profit (per contract): $182.50
Max Loss (per contract): -$1,266.50
Breakeven(s): $12.68
Risk / Reward Ratio: 0.144

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.

UEC covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on UEC. 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	-99.9%	-$1,266.50
$3.05	-77.8%	-$962.15
$6.10	-55.7%	-$657.80
$9.14	-33.6%	-$353.44
$12.18	-11.5%	-$49.09
$15.23	+10.6%	+$182.50
$18.27	+32.7%	+$182.50
$21.31	+54.8%	+$182.50
$24.36	+76.9%	+$182.50
$27.40	+99.0%	+$182.50

When traders use covered call on UEC

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

UEC thesis for this covered call

The market-implied 1-standard-deviation range for UEC extends from approximately $10.36 on the downside to $17.18 on the upside. A UEC covered call collects premium on an existing long UEC position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether UEC will breach that level within the expiration window. Current UEC IV rank near 54.27% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on UEC should anchor more to the directional view and the expected-move geometry. As a Energy name, UEC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UEC-specific events.

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

Frequently asked questions

What is a covered call on UEC?: A covered call on UEC is the covered call strategy applied to UEC (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 UEC stock trading near $13.77, the strikes shown on this page are snapped to the nearest listed UEC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are UEC 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 UEC covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 86.47%), the computed maximum profit is $182.50 per contract and the computed maximum loss is -$1,266.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a UEC covered call?: The breakeven for the UEC covered call priced on this page is roughly $12.68 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 UEC market-implied 1-standard-deviation expected move is approximately 24.79%; 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 UEC?: Covered calls on UEC are an income strategy run on existing UEC 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 UEC implied volatility affect this covered call?: UEC ATM IV is at 86.47% with IV rank near 54.27%, 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.