How are UNF 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 UNF covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 22.80%), the computed maximum profit is $1,700.50 per contract and the computed maximum loss is -$26,298.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a UNF covered call?

The breakeven for the UNF covered call priced on this page is roughly $263.00 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 UNF market-implied 1-standard-deviation expected move is approximately 6.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current UNF implied volatility affect this covered call?

UNF ATM IV is at 22.80% with IV rank near 2.94%, 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.

UNF Covered Call Strategy

UNF (UniFirst Corporation), in the Industrials sector, (Specialty Business Services industry), listed on NYSE.

UniFirst Corporation is a prominent provider of workwear and protective uniforms, catering to businesses across the United States, Europe, and Canada. The company segments its operations into U.S. and Canadian Rental and Cleaning, Manufacturing, Specialty Garments Rental and Cleaning, and First Aid divisions. At its core, UniFirst manages the entire lifecycle of work clothing. This includes designing, manufacturing, personalizing, renting, cleaning, delivering, and selling a wide range of uniforms and protective apparel. Their offerings span from standard items like shirts, pants, jackets, coveralls, lab coats, smocks, and aprons to specialized protective gear, such as flame-resistant and high-visibility garments. Beyond uniforms, UniFirst supplies a comprehensive array of facility maintenance and hygiene products.

UNF (UniFirst Corporation) trades in the Industrials sector, specifically Specialty Business Services, with a market capitalization of approximately $4.87B, a trailing P/E of 34.23, a beta of 0.63 versus the broader market, a 52-week range of 147.66-283.77, average daily share volume of 235K, a public-listing history dating back to 1984, approximately 16K full-time employees. These structural characteristics shape how UNF stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.63 indicates UNF has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. UNF pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on UNF?

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 UNF snapshot

As of June 30, 2026, spot at $264.52, ATM IV 22.80%, IV rank 2.94%, expected move 6.54%. The covered call on UNF 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 17-day expiry.

Why this covered call structure on UNF specifically: UNF IV at 22.80% is on the cheap side of its 1-year range, which means a premium-selling UNF covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 6.54% (roughly $17.29 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UNF expiries trade a higher absolute premium for lower per-day decay. Position sizing on UNF should anchor to the underlying notional of $264.52 per share and to the trader's directional view on UNF stock.

UNF covered call setup

The UNF 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 UNF near $264.52, the first option leg uses a $280.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UNF chain at a 17-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 UNF shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$264.52	long
Sell 1	Call	$280.00	$1.53

UNF covered call risk and reward

Net Premium / Debit: -$26,299.50
Max Profit (per contract): $1,700.50
Max Loss (per contract): -$26,298.50
Breakeven(s): $263.00
Risk / Reward Ratio: 0.065

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.

UNF covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on UNF. 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%	-$26,298.50
$58.50	-77.9%	-$20,449.93
$116.98	-55.8%	-$14,601.35
$175.47	-33.7%	-$8,752.78
$233.95	-11.6%	-$2,904.21
$292.44	+10.6%	+$1,700.50
$350.92	+32.7%	+$1,700.50
$409.41	+54.8%	+$1,700.50
$467.90	+76.9%	+$1,700.50
$526.38	+99.0%	+$1,700.50

When traders use covered call on UNF

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

UNF thesis for this covered call

The market-implied 1-standard-deviation range for UNF extends from approximately $247.23 on the downside to $281.81 on the upside. A UNF covered call collects premium on an existing long UNF position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether UNF will breach that level within the expiration window. Current UNF IV rank near 2.94% 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 UNF at 22.80%. As a Industrials name, UNF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UNF-specific events.

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

Frequently asked questions

What is a covered call on UNF?: A covered call on UNF is the covered call strategy applied to UNF (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 UNF stock trading near $264.52, the strikes shown on this page are snapped to the nearest listed UNF chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are UNF 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 UNF covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 22.80%), the computed maximum profit is $1,700.50 per contract and the computed maximum loss is -$26,298.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a UNF covered call?: The breakeven for the UNF covered call priced on this page is roughly $263.00 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 UNF market-implied 1-standard-deviation expected move is approximately 6.54%; 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 UNF?: Covered calls on UNF are an income strategy run on existing UNF 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 UNF implied volatility affect this covered call?: UNF ATM IV is at 22.80% with IV rank near 2.94%, 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.