YORW Covered Call Strategy
YORW (The York Water Company), in the Utilities sector, (Regulated Water industry), listed on NASDAQ.
The York Water Company specializes in the acquisition, treatment, and delivery of potable water. Beyond its core water supply operations, the firm manages a comprehensive wastewater network, comprising three distinct collection systems and five full-service collection and purification plants. Its primary water sources include Lake Williams and Lake Redman, two reservoirs with a combined capacity of approximately 2.2 billion gallons. This supply is augmented by a 15-mile conduit channeling water from the Susquehanna River to Lake Redman, alongside nine active groundwater wells providing water to customers in Adams County. The company serves a diverse industrial customer base, spanning sectors such as home furnishings, electronics manufacturing, food processing, paper production, defense materials, textile fabrication, climate control systems, cleaning product formulation, sports equipment, and motorcycle assembly. These services reach 51 communities across three counties in the south-central portion of Pennsylvania.
YORW (The York Water Company) trades in the Utilities sector, specifically Regulated Water, with a market capitalization of approximately $527.5M, a trailing P/E of 21.72, a beta of 0.62 versus the broader market, a 52-week range of 28.26-34.3, average daily share volume of 155K, a public-listing history dating back to 1999, approximately 129 full-time employees. These structural characteristics shape how YORW stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.62 indicates YORW has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. YORW pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on YORW?
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.
YORW snapshot
As of August 14, 2026, spot at $33.32, ATM IV 44.70%, IV rank 8.43%, expected move 12.82%. The covered call on YORW below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this covered call structure on YORW specifically: YORW IV at 44.70% is on the cheap side of its 1-year range, which means a premium-selling YORW covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 12.82% (roughly $4.27 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated YORW expiries trade a higher absolute premium for lower per-day decay. Position sizing on YORW should anchor to the underlying notional of $33.32 per share and to the trader's directional view on YORW stock.
YORW covered call setup
The YORW 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 YORW at $33.32 on that close, the first option leg uses a $34.99 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed YORW chain at a 35-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 YORW shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $33.32 | long |
| Sell 1 | Call | $34.99 | N/A |
YORW 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.
YORW covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on YORW. 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 YORW
Covered calls on YORW are an income strategy run on existing YORW stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
YORW thesis for this covered call
The market-implied 1-standard-deviation range for YORW extends from approximately $29.05 on the downside to $37.59 on the upside. A YORW covered call collects premium on an existing long YORW position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether YORW will breach that level within the expiration window. Current YORW IV rank near 8.43% 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 YORW at 44.70%. As a Utilities name, YORW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to YORW-specific events.
YORW 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. YORW positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move YORW alongside the broader basket even when YORW-specific fundamentals are unchanged. Short-premium structures like a covered call on YORW carry tail risk when realized volatility exceeds the implied move; review historical YORW earnings reactions and macro stress periods before sizing. Always rebuild the position from current YORW chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on YORW?
- A covered call on YORW is the covered call strategy applied to YORW (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 YORW stock at $33.32 on the most recent close, the strikes shown on this page are snapped to the nearest listed YORW chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are YORW 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 YORW covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 44.70%), 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 YORW covered call?
- The breakeven for the YORW covered call priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 YORW market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.82%; 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 YORW?
- Covered calls on YORW are an income strategy run on existing YORW 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 YORW implied volatility affect this covered call?
- YORW ATM IV is at 44.70% with IV rank near 8.43%, 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.