BLZE Covered Call Strategy
BLZE (Backblaze, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.
Backblaze, Inc., a storage cloud platform, provides businesses and consumers cloud services to store, use, and protect data in the United States and internationally. The company offers cloud services through a web-scale software infrastructure built on commodity hardware. It also provides Backblaze B2 Cloud Storage, which enables customers to store data, developers to build applications, and partners to expand their use cases. This service is offered as a consumption-based Infrastructure-as-a-Service (IaaS) and serves use cases, such as backups, multi-cloud, application development, and ransomware protection. In addition, the company offers Backblaze Computer Backup that automatically backs up data from laptops and desktops for businesses and individuals, which provides a subscription-based Software-as-a-Service and serves use cases, including computer backup, ransomware protection, theft and loss protection, and remote access. It serves the public cloud IaaS storage and Data-Protection-as-a-Service markets.
BLZE (Backblaze, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $442.3M, a beta of 1.41 versus the broader market, a 52-week range of 3.261-10.858, average daily share volume of 1.6M, a public-listing history dating back to 2021, approximately 346 full-time employees. These structural characteristics shape how BLZE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.41 indicates BLZE has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a covered call on BLZE?
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 BLZE snapshot
As of May 15, 2026, spot at $7.01, ATM IV 69.60%, IV rank 31.55%, expected move 19.95%. The covered call on BLZE 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 BLZE specifically: BLZE IV at 69.60% is mid-range versus its 1-year history, so the credit collected on a BLZE covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 19.95% (roughly $1.40 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 BLZE expiries trade a higher absolute premium for lower per-day decay. Position sizing on BLZE should anchor to the underlying notional of $7.01 per share and to the trader's directional view on BLZE stock.
BLZE covered call setup
The BLZE 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 BLZE near $7.01, the first option leg uses a $7.36 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BLZE 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 BLZE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $7.01 | long |
| Sell 1 | Call | $7.36 | N/A |
BLZE 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.
BLZE covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on BLZE. 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 BLZE
Covered calls on BLZE are an income strategy run on existing BLZE stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
BLZE thesis for this covered call
The market-implied 1-standard-deviation range for BLZE extends from approximately $5.61 on the downside to $8.41 on the upside. A BLZE covered call collects premium on an existing long BLZE position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether BLZE will breach that level within the expiration window. Current BLZE IV rank near 31.55% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on BLZE should anchor more to the directional view and the expected-move geometry. As a Technology name, BLZE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BLZE-specific events.
BLZE 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. BLZE positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BLZE alongside the broader basket even when BLZE-specific fundamentals are unchanged. Short-premium structures like a covered call on BLZE carry tail risk when realized volatility exceeds the implied move; review historical BLZE earnings reactions and macro stress periods before sizing. Always rebuild the position from current BLZE chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on BLZE?
- A covered call on BLZE is the covered call strategy applied to BLZE (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 BLZE stock trading near $7.01, the strikes shown on this page are snapped to the nearest listed BLZE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BLZE 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 BLZE covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 69.60%), 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 BLZE covered call?
- The breakeven for the BLZE 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 BLZE market-implied 1-standard-deviation expected move is approximately 19.95%; 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 BLZE?
- Covered calls on BLZE are an income strategy run on existing BLZE 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 BLZE implied volatility affect this covered call?
- BLZE ATM IV is at 69.60% with IV rank near 31.55%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.