CACI Covered Call Strategy
CACI (CACI International Inc), in the Technology sector, (Information Technology Services industry), listed on NYSE.
CACI International Inc, together with its subsidiaries, provides expertise and technology to enterprise and mission customers in support of national security missions and government modernization/transformation in the intelligence, defense, and federal civilian sectors. It operates in two segments, Domestic Operations and International Operations. The Domestic Operations segment offers information solutions and services to the U.S. federal government agencies and commercial enterprises in the areas, such as digital solutions, C4ISR, cyber and space, engineering services, enterprise IT, and mission support. The International Operations segment provides a range of IT services, proprietary data, and software products to the commercial and government customers in the United Kingdom, continental Europe, and internationally. The company designs, implements, protects, and manages secure enterprise IT solutions. It also offers software-defined, full-spectrum cyber, electronic warfare, and counter-unmanned aircraft system solutions; and platform integration and modernization and sustainment, as well as system engineering, naval architecture, training and simulation, and logistics engineering.
CACI (CACI International Inc) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $11.13B, a trailing P/E of 20.70, a beta of 0.54 versus the broader market, a 52-week range of 409.62-683.5, average daily share volume of 279K, a public-listing history dating back to 1980, approximately 25K 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.
Current CACI snapshot
As of May 15, 2026, spot at $485.95, ATM IV 37.90%, IV rank 38.49%, expected move 10.87%. The covered call on CACI 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 CACI specifically: CACI IV at 37.90% is mid-range versus its 1-year history, so the credit collected on a CACI covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 10.87% (roughly $52.80 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 CACI expiries trade a higher absolute premium for lower per-day decay. Position sizing on CACI should anchor to the underlying notional of $485.95 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 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CACI near $485.95, the first option leg uses a $510.00 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 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 CACI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $485.95 | long |
| Sell 1 | Call | $510.00 | $15.15 |
CACI covered call risk and reward
- Net Premium / Debit
- -$47,080.00
- Max Profit (per contract)
- $3,920.00
- Max Loss (per contract)
- -$47,079.00
- Breakeven(s)
- $470.80
- Risk / Reward Ratio
- 0.083
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% | -$47,079.00 |
| $107.46 | -77.9% | -$36,334.49 |
| $214.90 | -55.8% | -$25,589.97 |
| $322.35 | -33.7% | -$14,845.46 |
| $429.79 | -11.6% | -$4,100.95 |
| $537.24 | +10.6% | +$3,920.00 |
| $644.68 | +32.7% | +$3,920.00 |
| $752.13 | +54.8% | +$3,920.00 |
| $859.57 | +76.9% | +$3,920.00 |
| $967.02 | +99.0% | +$3,920.00 |
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 $433.15 on the downside to $538.75 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 38.49% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on CACI should anchor more to the directional view and the expected-move geometry. 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 trading near $485.95, the strikes shown on this page are snapped to the nearest listed CACI chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 37.90%), the computed maximum profit is $3,920.00 per contract and the computed maximum loss is -$47,079.00 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 $470.80 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 CACI market-implied 1-standard-deviation expected move is approximately 10.87%; 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 37.90% with IV rank near 38.49%, 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.