UNIT Covered Call Strategy
UNIT (Uniti Group Inc.), in the Real Estate sector, (REIT - Specialty industry), listed on NASDAQ.
Uniti, an internally managed real estate investment trust, is engaged in the acquisition and construction of mission critical communications infrastructure, and is a leading provider of wireless infrastructure solutions for the communications industry. As of September 30, 2020, Uniti owns 6.7 million fiber strand miles and other communications real estate throughout the United States.
UNIT (Uniti Group Inc.) trades in the Real Estate sector, specifically REIT - Specialty, with a market capitalization of approximately $2.74B, a trailing P/E of 2.40, a beta of 1.45 versus the broader market, a 52-week range of 5.3-12.385, average daily share volume of 2.5M, a public-listing history dating back to 2015, approximately 758 full-time employees. These structural characteristics shape how UNIT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.45 indicates UNIT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 2.40 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. UNIT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on UNIT?
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 UNIT snapshot
As of May 15, 2026, spot at $11.04, ATM IV 46.80%, IV rank 22.45%, expected move 13.42%. The covered call on UNIT 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 34-day expiry.
Why this covered call structure on UNIT specifically: UNIT IV at 46.80% is on the cheap side of its 1-year range, which means a premium-selling UNIT covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 13.42% (roughly $1.48 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UNIT expiries trade a higher absolute premium for lower per-day decay. Position sizing on UNIT should anchor to the underlying notional of $11.04 per share and to the trader's directional view on UNIT stock.
UNIT covered call setup
The UNIT 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 UNIT near $11.04, the first option leg uses a $11.59 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UNIT chain at a 34-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 UNIT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $11.04 | long |
| Sell 1 | Call | $11.59 | N/A |
UNIT covered call risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
UNIT covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on UNIT. 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.
When traders use covered call on UNIT
Covered calls on UNIT are an income strategy run on existing UNIT stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
UNIT thesis for this covered call
The market-implied 1-standard-deviation range for UNIT extends from approximately $9.56 on the downside to $12.52 on the upside. A UNIT covered call collects premium on an existing long UNIT position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether UNIT will breach that level within the expiration window. Current UNIT IV rank near 22.45% 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 UNIT at 46.80%. As a Real Estate name, UNIT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UNIT-specific events.
UNIT 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. UNIT positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UNIT alongside the broader basket even when UNIT-specific fundamentals are unchanged. Short-premium structures like a covered call on UNIT carry tail risk when realized volatility exceeds the implied move; review historical UNIT earnings reactions and macro stress periods before sizing. Always rebuild the position from current UNIT chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on UNIT?
- A covered call on UNIT is the covered call strategy applied to UNIT (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 UNIT stock trading near $11.04, the strikes shown on this page are snapped to the nearest listed UNIT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UNIT 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 UNIT covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 46.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UNIT covered call?
- The breakeven for the UNIT covered call priced on this page is no defined breakeven on the modeled curve 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 UNIT market-implied 1-standard-deviation expected move is approximately 13.42%; 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 UNIT?
- Covered calls on UNIT are an income strategy run on existing UNIT 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 UNIT implied volatility affect this covered call?
- UNIT ATM IV is at 46.80% with IV rank near 22.45%, 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.