How are ZION 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 ZION covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 29.10%), the computed maximum profit is $474.50 per contract and the computed maximum loss is -$5,774.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ZION covered call?

The breakeven for the ZION covered call priced on this page is roughly $57.76 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 ZION market-implied 1-standard-deviation expected move is approximately 8.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ZION implied volatility affect this covered call?

ZION ATM IV is at 29.10% with IV rank near 17.82%, 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.

ZION Covered Call Strategy

ZION (Zions Bancorporation, National Association), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.

Zions Bancorporation, National Association provides various banking and related services primarily in the states of Arizona, California, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington, and Wyoming. The company offers corporate banking services; commercial banking, including a focus on small- and medium-sized businesses; commercial real estate banking services; municipal and public finance services; retail banking, including residential mortgages; trust services; wealth management and private client banking services; and capital markets products and services. As of December 31, 2020, it operated 422 branches, which included 273 owned and 149 leased. The company was formerly known as ZB, National Association and changed its name to Zions Bancorporation, National Association in September 2018. Zions Bancorporation, National Association was founded in 1873 and is headquartered in Salt Lake City, Utah.

ZION (Zions Bancorporation, National Association) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $8.77B, a trailing P/E of 9.11, a beta of 0.82 versus the broader market, a 52-week range of 45.52-66.18, average daily share volume of 1.7M, a public-listing history dating back to 1980, approximately 9K full-time employees. These structural characteristics shape how ZION stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.82 places ZION roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 9.11 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. ZION pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on ZION?

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 ZION snapshot

As of May 15, 2026, spot at $59.48, ATM IV 29.10%, IV rank 17.82%, expected move 8.34%. The covered call on ZION 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 63-day expiry.

Why this covered call structure on ZION specifically: ZION IV at 29.10% is on the cheap side of its 1-year range, which means a premium-selling ZION covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.34% (roughly $4.96 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ZION expiries trade a higher absolute premium for lower per-day decay. Position sizing on ZION should anchor to the underlying notional of $59.48 per share and to the trader's directional view on ZION stock.

ZION covered call setup

The ZION 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 ZION near $59.48, the first option leg uses a $62.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ZION chain at a 63-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 ZION shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$59.48	long
Sell 1	Call	$62.50	$1.73

ZION covered call risk and reward

Net Premium / Debit: -$5,775.50
Max Profit (per contract): $474.50
Max Loss (per contract): -$5,774.50
Breakeven(s): $57.76
Risk / Reward Ratio: 0.082

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.

ZION covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on ZION. 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	-100.0%	-$5,774.50
$13.16	-77.9%	-$4,459.47
$26.31	-55.8%	-$3,144.45
$39.46	-33.7%	-$1,829.42
$52.61	-11.5%	-$514.40
$65.76	+10.6%	+$474.50
$78.91	+32.7%	+$474.50
$92.06	+54.8%	+$474.50
$105.21	+76.9%	+$474.50
$118.36	+99.0%	+$474.50

When traders use covered call on ZION

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

ZION thesis for this covered call

The market-implied 1-standard-deviation range for ZION extends from approximately $54.52 on the downside to $64.44 on the upside. A ZION covered call collects premium on an existing long ZION position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether ZION will breach that level within the expiration window. Current ZION IV rank near 17.82% 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 ZION at 29.10%. As a Financial Services name, ZION options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ZION-specific events.

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

Frequently asked questions

What is a covered call on ZION?: A covered call on ZION is the covered call strategy applied to ZION (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 ZION stock trading near $59.48, the strikes shown on this page are snapped to the nearest listed ZION chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ZION 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 ZION covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 29.10%), the computed maximum profit is $474.50 per contract and the computed maximum loss is -$5,774.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ZION covered call?: The breakeven for the ZION covered call priced on this page is roughly $57.76 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 ZION market-implied 1-standard-deviation expected move is approximately 8.34%; 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 ZION?: Covered calls on ZION are an income strategy run on existing ZION 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 ZION implied volatility affect this covered call?: ZION ATM IV is at 29.10% with IV rank near 17.82%, 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.