BZAI Covered Call Strategy

BZAI (Blaize Holdings, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Blaize Holdings, Inc. provides artificial intelligence (AI)-enabled edge computing solutions. It offers AI edge computing products, including Blaize Pathfinder P1600 embedded system on modules, Blaize Xplorer X1600E EDSFF small form factor accelerators, Blaize Xplorer X600M M.2 small form factor accelerator platforms, Blaize Xplorer X1600P PCIe accelerators, Blaize Xplorer X1600P-Q PCIe accelerators, and Blaize Pathfinder 1600-DK embedded kits. The company also provides Blaize AI studio that delivers AI-driven application end-to-end data operations, development operations, and machine learning operation tools; and AI Studio marketplace, which allows users to browse and use AI/ML artifacts to run or share securely across their team and organization. It serves automotive, smart vision, and enterprise computing markets. The company was founded in 2010 and is headquartered in El Dorado Hills, California.

BZAI (Blaize Holdings, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $205.7M, a beta of 0.08 versus the broader market, a 52-week range of 1-6.76, average daily share volume of 9.0M, a public-listing history dating back to 2025, approximately 232 full-time employees. These structural characteristics shape how BZAI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.08 indicates BZAI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a covered call on BZAI?

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 BZAI snapshot

As of May 15, 2026, spot at $1.35, ATM IV 129.10%, IV rank 32.36%, expected move 37.01%. The covered call on BZAI 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 BZAI specifically: BZAI IV at 129.10% is mid-range versus its 1-year history, so the credit collected on a BZAI covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 37.01% (roughly $0.50 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 BZAI expiries trade a higher absolute premium for lower per-day decay. Position sizing on BZAI should anchor to the underlying notional of $1.35 per share and to the trader's directional view on BZAI stock.

BZAI covered call setup

The BZAI 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 BZAI near $1.35, the first option leg uses a $1.42 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BZAI 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 BZAI shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Buy 100 sharesStock$1.35long
Sell 1Call$1.42N/A

BZAI 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.

BZAI covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on BZAI. 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 BZAI

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

BZAI thesis for this covered call

The market-implied 1-standard-deviation range for BZAI extends from approximately $0.85 on the downside to $1.85 on the upside. A BZAI covered call collects premium on an existing long BZAI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether BZAI will breach that level within the expiration window. Current BZAI IV rank near 32.36% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on BZAI should anchor more to the directional view and the expected-move geometry. As a Technology name, BZAI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BZAI-specific events.

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

Frequently asked questions

What is a covered call on BZAI?
A covered call on BZAI is the covered call strategy applied to BZAI (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 BZAI stock trading near $1.35, the strikes shown on this page are snapped to the nearest listed BZAI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BZAI 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 BZAI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 129.10%), 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 BZAI covered call?
The breakeven for the BZAI 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 BZAI market-implied 1-standard-deviation expected move is approximately 37.01%; 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 BZAI?
Covered calls on BZAI are an income strategy run on existing BZAI 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 BZAI implied volatility affect this covered call?
BZAI ATM IV is at 129.10% with IV rank near 32.36%, 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.

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