WOR Covered Call Strategy
WOR (Worthington Industries, Inc.), in the Industrials sector, (Manufacturing - Metal Fabrication industry), listed on NYSE.
Worthington Industries, Inc., an industrial manufacturing company, focuses on value-added steel processing, manufactured consumer, building, and sustainable mobility products in North America and internationally. It operates through Steel Processing, Consumer Products, Building Products, and Sustainable Energy Solutions segments. The Steel Processing segment processes flat-rolled steel for customers primarily in the automotive, aerospace, agricultural, appliance, construction, container, energy, hardware, heavy-truck, HVAC, lawn and garden, leisure and recreation, office furniture, and office equipment markets. It also toll processes steel for steel mills, large end-users, service centers, and other processors. The Consumer Products segment sells tools, outdoor living, and celebrations products under the Coleman, Bernzomatic, Balloon Time, Mag-Torch, General, Garden-Weasel, Pactool International, Hawkeye, Worthington Pro Grade, and Level5 brand names. The Building Products segment sells refrigerant and LPG cylinders, well water and expansion tanks, and other specialty products to gas producers and distributors.
WOR (Worthington Industries, Inc.) trades in the Industrials sector, specifically Manufacturing - Metal Fabrication, with a market capitalization of approximately $2.71B, a trailing P/E of 24.03, a beta of 1.18 versus the broader market, a 52-week range of 45.01-70.91, average daily share volume of 204K, a public-listing history dating back to 1980, approximately 6K full-time employees. These structural characteristics shape how WOR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.18 places WOR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. WOR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on WOR?
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 WOR snapshot
As of May 15, 2026, spot at $53.48, ATM IV 31.80%, IV rank 2.70%, expected move 9.12%. The covered call on WOR 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 WOR specifically: WOR IV at 31.80% is on the cheap side of its 1-year range, which means a premium-selling WOR covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.12% (roughly $4.88 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 WOR expiries trade a higher absolute premium for lower per-day decay. Position sizing on WOR should anchor to the underlying notional of $53.48 per share and to the trader's directional view on WOR stock.
WOR covered call setup
The WOR 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 WOR near $53.48, the first option leg uses a $56.15 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WOR 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 WOR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $53.48 | long |
| Sell 1 | Call | $56.15 | N/A |
WOR 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.
WOR covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on WOR. 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 WOR
Covered calls on WOR are an income strategy run on existing WOR stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
WOR thesis for this covered call
The market-implied 1-standard-deviation range for WOR extends from approximately $48.60 on the downside to $58.36 on the upside. A WOR covered call collects premium on an existing long WOR position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether WOR will breach that level within the expiration window. Current WOR IV rank near 2.70% 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 WOR at 31.80%. As a Industrials name, WOR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WOR-specific events.
WOR 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. WOR positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WOR alongside the broader basket even when WOR-specific fundamentals are unchanged. Short-premium structures like a covered call on WOR carry tail risk when realized volatility exceeds the implied move; review historical WOR earnings reactions and macro stress periods before sizing. Always rebuild the position from current WOR chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on WOR?
- A covered call on WOR is the covered call strategy applied to WOR (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 WOR stock trading near $53.48, the strikes shown on this page are snapped to the nearest listed WOR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WOR 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 WOR covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 31.80%), 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 WOR covered call?
- The breakeven for the WOR 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 WOR market-implied 1-standard-deviation expected move is approximately 9.12%; 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 WOR?
- Covered calls on WOR are an income strategy run on existing WOR 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 WOR implied volatility affect this covered call?
- WOR ATM IV is at 31.80% with IV rank near 2.70%, 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.