How are CBRS 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 CBRS covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 93.67%), the computed maximum profit is $2,930.00 per contract and the computed maximum loss is -$20,069.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CBRS covered call?

The breakeven for the CBRS covered call priced on this page is roughly $200.70 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 CBRS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CBRS implied volatility affect this covered call?

Current CBRS ATM IV is 93.67%; IV rank context is unavailable in the current snapshot.

CBRS Covered Call Strategy

CBRS (Cerebras Systems Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Cerebras Systems Inc. is a leading innovator in artificial intelligence infrastructure. The company develops and manufactures an advanced AI compute platform, integrating proprietary hardware systems and software. This platform is delivered in rack-mountable units, suitable for deployment in data centers, scaling all the way up to supercomputer-level capabilities. At its core is the groundbreaking Wafer-Scale Engine (WSE), a unique chip that encompasses an entire silicon wafer. This innovation is specifically engineered to deliver superior performance and speed compared to conventional GPUs, addressing the intensive computational demands of inference, Generative AI, and a broad spectrum of other AI applications. Cerebras serves a diverse clientele, including leading hyperscalers, advanced foundation model laboratories, AI-native and digital-first businesses, large enterprises, and key players in Sovereign AI initiatives.

CBRS (Cerebras Systems Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $59.37B, a beta of 1.85 versus the broader market, a 52-week range of 160.81-386.34, average daily share volume of 7.3M, a public-listing history dating back to 2026, approximately 784 full-time employees. These structural characteristics shape how CBRS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.85 indicates CBRS 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 CBRS?

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.

CBRS snapshot

As of August 14, 2026, spot at $218.70, ATM IV 93.67%, expected move 26.85%. The covered call on CBRS 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 28-day expiry.

Why this covered call structure on CBRS specifically: IV rank is unavailable in the current snapshot, so regime-based timing for CBRS is inferred from ATM IV at 93.67% alone, with a market-implied 1-standard-deviation move of approximately 26.85% (roughly $58.73 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CBRS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CBRS should anchor to the underlying notional of $218.70 per share and to the trader's directional view on CBRS stock.

CBRS covered call setup

The CBRS 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 CBRS at $218.70 on that close, the first option leg uses a $230.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CBRS chain at a 28-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 CBRS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$218.70	long
Sell 1	Call	$230.00	$18.00

CBRS covered call risk and reward

Net Premium / Debit: -$20,070.00
Max Profit (per contract): $2,930.00
Max Loss (per contract): -$20,069.00
Breakeven(s): $200.70
Risk / Reward Ratio: 0.146

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.

CBRS covered call payoff curve

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

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$20,069.00
$48.36	-77.9%	-$15,233.53
$96.72	-55.8%	-$10,398.07
$145.07	-33.7%	-$5,562.60
$193.43	-11.6%	-$727.13
$241.78	+10.6%	+$2,930.00
$290.14	+32.7%	+$2,930.00
$338.49	+54.8%	+$2,930.00
$386.85	+76.9%	+$2,930.00
$435.20	+99.0%	+$2,930.00

When traders use covered call on CBRS

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

CBRS thesis for this covered call

The market-implied 1-standard-deviation range for CBRS extends from approximately $159.97 on the downside to $277.43 on the upside. A CBRS covered call collects premium on an existing long CBRS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CBRS will breach that level within the expiration window. As a Technology name, CBRS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CBRS-specific events.

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

Frequently asked questions

What is a covered call on CBRS?: A covered call on CBRS is the covered call strategy applied to CBRS (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 CBRS stock at $218.70 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CBRS chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CBRS 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 CBRS covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 93.67%), the computed maximum profit is $2,930.00 per contract and the computed maximum loss is -$20,069.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CBRS covered call?: The breakeven for the CBRS covered call priced on this page is roughly $200.70 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 CBRS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.85%; 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 CBRS?: Covered calls on CBRS are an income strategy run on existing CBRS 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 CBRS implied volatility affect this covered call?: Current CBRS ATM IV is 93.67%; IV rank context is unavailable in the current snapshot.