CACI Covered Call Strategy
CACI (CACI International Inc), in the Technology sector, (Information Technology Services industry), listed on NYSE.
CACI International Inc, alongside its subsidiaries, is a provider of specialized expertise and advanced technology. The company primarily serves enterprise and mission-critical customers by supporting vital national security objectives and facilitating government modernization and transformation efforts across the intelligence, defense, and federal civilian sectors. The company operates through two main divisions: Domestic Operations and International Operations. The Domestic Operations segment focuses on delivering information solutions and services to U.S. federal government agencies and commercial entities. This includes areas such as digital transformation, Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR), cybersecurity and space technologies, engineering services, enterprise IT management, and mission support. Internationally, CACI offers a suite of IT services, proprietary data, and software products to both commercial and government clients throughout the United Kingdom, mainland Europe, and other global locations.
CACI (CACI International Inc) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $15.02B, a trailing P/E of 28.05, a beta of 0.54 versus the broader market, a 52-week range of 434.7-683.5, average daily share volume of 300K, a public-listing history dating back to 1980, approximately 27K full-time employees. These structural characteristics shape how CACI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.54 indicates CACI 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 CACI?
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.
CACI snapshot
As of August 14, 2026, spot at $666.61, ATM IV 32.60%, IV rank 21.50%, expected move 9.35%. The covered call on CACI below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this covered call structure on CACI specifically: CACI IV at 32.60% is on the cheap side of its 1-year range, which means a premium-selling CACI covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.35% (roughly $62.30 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CACI expiries trade a higher absolute premium for lower per-day decay. Position sizing on CACI should anchor to the underlying notional of $666.61 per share and to the trader's directional view on CACI stock.
CACI covered call setup
The CACI covered call below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CACI at $666.61 on that close, the first option leg uses a $700.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CACI chain at a 35-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 CACI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $666.61 | long |
| Sell 1 | Call | $700.00 | $14.35 |
CACI covered call risk and reward
- Net Premium / Debit
- -$65,226.00
- Max Profit (per contract)
- $4,774.00
- Max Loss (per contract)
- -$65,225.00
- Breakeven(s)
- $652.26
- Risk / Reward Ratio
- 0.073
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.
CACI covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CACI. 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% | -$65,225.00 |
| $147.40 | -77.9% | -$50,485.99 |
| $294.79 | -55.8% | -$35,746.99 |
| $442.18 | -33.7% | -$21,007.98 |
| $589.57 | -11.6% | -$6,268.98 |
| $736.96 | +10.6% | +$4,774.00 |
| $884.35 | +32.7% | +$4,774.00 |
| $1,031.74 | +54.8% | +$4,774.00 |
| $1,179.13 | +76.9% | +$4,774.00 |
| $1,326.52 | +99.0% | +$4,774.00 |
When traders use covered call on CACI
Covered calls on CACI are an income strategy run on existing CACI stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CACI thesis for this covered call
The market-implied 1-standard-deviation range for CACI extends from approximately $604.31 on the downside to $728.91 on the upside. A CACI covered call collects premium on an existing long CACI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CACI will breach that level within the expiration window. Current CACI IV rank near 21.50% 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 CACI at 32.60%. As a Technology name, CACI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CACI-specific events.
CACI 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. CACI positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CACI alongside the broader basket even when CACI-specific fundamentals are unchanged. Short-premium structures like a covered call on CACI carry tail risk when realized volatility exceeds the implied move; review historical CACI earnings reactions and macro stress periods before sizing. Always rebuild the position from current CACI chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CACI?
- A covered call on CACI is the covered call strategy applied to CACI (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 CACI stock at $666.61 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CACI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CACI 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 CACI covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 32.60%), the computed maximum profit is $4,774.00 per contract and the computed maximum loss is -$65,225.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CACI covered call?
- The breakeven for the CACI covered call priced on this page is roughly $652.26 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The CACI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.35%; 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 CACI?
- Covered calls on CACI are an income strategy run on existing CACI 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 CACI implied volatility affect this covered call?
- CACI ATM IV is at 32.60% with IV rank near 21.50%, 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.