ALLT Covered Call Strategy
ALLT (Allot Ltd.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.
Allot Ltd. provides network intelligence and security solutions to protect and personalize the digital experience in Europe, Asia, Oceania, the Middle East, Africa, and the Americas. The company offers Allot Secure Management platform that includes Allot NetworkSecure, Allot HomeSecure, Allot DNSecure, EndPoint Secure, Allot BusinessSecure, Allot IoTSecure, and Allot Secure Cloud. It also provides Allot DDoS Secure/5G Protect, a solution that offers attack detection and mitigation services; integrated network intelligence solutions; and centralized management solutions, such as Allot NetXplorer for providing a central access point for network-wide monitoring, reporting, analytics, troubleshooting, accounting, and quality of service policy provisioning. The company markets its products through direct sales, distributors, resellers, original equipment manufacturers, and system integrators to carriers, mobile and fixed service providers, cable operators, satellite service providers, private networks, data centers, financial and educational institutions, and governments. Allot Ltd. was formerly known as Allot Communications Ltd. and changed its name to Allot Ltd. in October 2018. The company was incorporated in 1996 and is based in Hod Hasharon, Israel.
ALLT (Allot Ltd.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $312.5M, a trailing P/E of 61.02, a beta of 1.47 versus the broader market, a 52-week range of 6.12-11.92, average daily share volume of 495K, a public-listing history dating back to 2006, approximately 523 full-time employees. These structural characteristics shape how ALLT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.47 indicates ALLT 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 61.02 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a covered call on ALLT?
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 ALLT snapshot
As of May 15, 2026, spot at $7.06, ATM IV 57.00%, IV rank 12.71%, expected move 16.34%. The covered call on ALLT 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 126-day expiry.
Why this covered call structure on ALLT specifically: ALLT IV at 57.00% is on the cheap side of its 1-year range, which means a premium-selling ALLT covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 16.34% (roughly $1.15 on the underlying). The 126-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ALLT expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALLT should anchor to the underlying notional of $7.06 per share and to the trader's directional view on ALLT stock.
ALLT covered call setup
The ALLT 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 ALLT near $7.06, the first option leg uses a $7.41 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALLT chain at a 126-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 ALLT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $7.06 | long |
| Sell 1 | Call | $7.41 | N/A |
ALLT 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.
ALLT covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on ALLT. 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 ALLT
Covered calls on ALLT are an income strategy run on existing ALLT stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
ALLT thesis for this covered call
The market-implied 1-standard-deviation range for ALLT extends from approximately $5.91 on the downside to $8.21 on the upside. A ALLT covered call collects premium on an existing long ALLT position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether ALLT will breach that level within the expiration window. Current ALLT IV rank near 12.71% 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 ALLT at 57.00%. As a Technology name, ALLT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALLT-specific events.
ALLT 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. ALLT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALLT alongside the broader basket even when ALLT-specific fundamentals are unchanged. Short-premium structures like a covered call on ALLT carry tail risk when realized volatility exceeds the implied move; review historical ALLT earnings reactions and macro stress periods before sizing. Always rebuild the position from current ALLT chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on ALLT?
- A covered call on ALLT is the covered call strategy applied to ALLT (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 ALLT stock trading near $7.06, the strikes shown on this page are snapped to the nearest listed ALLT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ALLT 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 ALLT covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 57.00%), 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 ALLT covered call?
- The breakeven for the ALLT 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 ALLT market-implied 1-standard-deviation expected move is approximately 16.34%; 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 ALLT?
- Covered calls on ALLT are an income strategy run on existing ALLT 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 ALLT implied volatility affect this covered call?
- ALLT ATM IV is at 57.00% with IV rank near 12.71%, 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.