AEYE Covered Call Strategy
AEYE (AudioEye, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
AudioEye, Inc. provides patented, internet content publication, distribution software, and related services to Internet, print, broadcast, and other media to people regardless of their network connection, device, location, or disabilities in the United States. Its software and services enable conversion of digital content into accessible formats and allows for real time distribution to end users on any Internet connected device. The company offers AudioEye, an always-on testing, remediation, and monitoring solution that improves conformance with web content accessibility guidelines; identifies and fixes the common accessibility errors and addresses a range of disabilities including dyslexia, color blindness, epilepsy, and others; and provides additional solutions to provide for enhanced compliance and accessibility, including periodic manual auditing, manual remediations, and legal support services, as well as PDF remediation services and audit reports to help customers with their digital accessibility needs. The company serves small- and medium-sized businesses, corporate enterprises, non-profit organizations, and federal government agencies, as well as federal, state, and local governments and agencies through content management system partners, platform and agency partners, authorized resellers, and the marketplace. AudioEye, Inc. was incorporated in 2005 and is based in Tucson, Arizona.
AEYE (AudioEye, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $89.3M, a beta of 0.77 versus the broader market, a 52-week range of 5.31-16.39, average daily share volume of 192K, a public-listing history dating back to 2013, approximately 117 full-time employees. These structural characteristics shape how AEYE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.77 places AEYE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a covered call on AEYE?
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 AEYE snapshot
As of May 15, 2026, spot at $7.03, ATM IV 466.80%, IV rank 100.00%, expected move 133.83%. The covered call on AEYE 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 AEYE specifically: AEYE IV at 466.80% is rich versus its 1-year range, which favors premium-selling structures like a AEYE covered call, with a market-implied 1-standard-deviation move of approximately 133.83% (roughly $9.41 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 AEYE expiries trade a higher absolute premium for lower per-day decay. Position sizing on AEYE should anchor to the underlying notional of $7.03 per share and to the trader's directional view on AEYE stock.
AEYE covered call setup
The AEYE 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 AEYE near $7.03, the first option leg uses a $7.38 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AEYE 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 AEYE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $7.03 | long |
| Sell 1 | Call | $7.38 | N/A |
AEYE 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.
AEYE covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on AEYE. 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 AEYE
Covered calls on AEYE are an income strategy run on existing AEYE stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
AEYE thesis for this covered call
The market-implied 1-standard-deviation range for AEYE extends from approximately $-2.38 on the downside to $16.44 on the upside. A AEYE covered call collects premium on an existing long AEYE position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether AEYE will breach that level within the expiration window. Current AEYE IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on AEYE at 466.80%. As a Technology name, AEYE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AEYE-specific events.
AEYE 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. AEYE positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AEYE alongside the broader basket even when AEYE-specific fundamentals are unchanged. Short-premium structures like a covered call on AEYE carry tail risk when realized volatility exceeds the implied move; review historical AEYE earnings reactions and macro stress periods before sizing. Always rebuild the position from current AEYE chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on AEYE?
- A covered call on AEYE is the covered call strategy applied to AEYE (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 AEYE stock trading near $7.03, the strikes shown on this page are snapped to the nearest listed AEYE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AEYE 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 AEYE covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 466.80%), 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 AEYE covered call?
- The breakeven for the AEYE 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 AEYE market-implied 1-standard-deviation expected move is approximately 133.83%; 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 AEYE?
- Covered calls on AEYE are an income strategy run on existing AEYE 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 AEYE implied volatility affect this covered call?
- AEYE ATM IV is at 466.80% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.