CCB Covered Call Strategy
CCB (Coastal Financial Corporation), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small to medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company offers commercial and industrial loans, including term loans, small business administration loans, commercial lines of credit, working capital loans, equipment financing, borrowing base loans, and other loan products; owner-occupied and non-owner-occupied real estate loans, and multi-family residential loans; construction and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as overdraft protection. It also provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services, as well as debit cards. In addition, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as banking as a service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their clients banking services. It operates 14 full-service banking locations.
CCB (Coastal Financial Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $1.04B, a trailing P/E of 20.93, a beta of 0.76 versus the broader market, a 52-week range of 66.5-120.05, average daily share volume of 168K, a public-listing history dating back to 2018, approximately 488 full-time employees. These structural characteristics shape how CCB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.76 places CCB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a covered call on CCB?
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 CCB snapshot
As of May 15, 2026, spot at $68.88, ATM IV 45.20%, IV rank 4.49%, expected move 12.96%. The covered call on CCB 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 63-day expiry.
Why this covered call structure on CCB specifically: CCB IV at 45.20% is on the cheap side of its 1-year range, which means a premium-selling CCB covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 12.96% (roughly $8.93 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CCB expiries trade a higher absolute premium for lower per-day decay. Position sizing on CCB should anchor to the underlying notional of $68.88 per share and to the trader's directional view on CCB stock.
CCB covered call setup
The CCB 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 CCB near $68.88, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CCB chain at a 63-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 CCB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $68.88 | long |
| Sell 1 | Call | $70.00 | $5.30 |
CCB covered call risk and reward
- Net Premium / Debit
- -$6,358.00
- Max Profit (per contract)
- $642.00
- Max Loss (per contract)
- -$6,357.00
- Breakeven(s)
- $63.58
- Risk / Reward Ratio
- 0.101
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.
CCB covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CCB. 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% | -$6,357.00 |
| $15.24 | -77.9% | -$4,834.14 |
| $30.47 | -55.8% | -$3,311.27 |
| $45.70 | -33.7% | -$1,788.41 |
| $60.92 | -11.5% | -$265.54 |
| $76.15 | +10.6% | +$642.00 |
| $91.38 | +32.7% | +$642.00 |
| $106.61 | +54.8% | +$642.00 |
| $121.84 | +76.9% | +$642.00 |
| $137.07 | +99.0% | +$642.00 |
When traders use covered call on CCB
Covered calls on CCB are an income strategy run on existing CCB stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CCB thesis for this covered call
The market-implied 1-standard-deviation range for CCB extends from approximately $59.95 on the downside to $77.81 on the upside. A CCB covered call collects premium on an existing long CCB position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CCB will breach that level within the expiration window. Current CCB IV rank near 4.49% 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 CCB at 45.20%. As a Financial Services name, CCB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CCB-specific events.
CCB 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. CCB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CCB alongside the broader basket even when CCB-specific fundamentals are unchanged. Short-premium structures like a covered call on CCB carry tail risk when realized volatility exceeds the implied move; review historical CCB earnings reactions and macro stress periods before sizing. Always rebuild the position from current CCB chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CCB?
- A covered call on CCB is the covered call strategy applied to CCB (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 CCB stock trading near $68.88, the strikes shown on this page are snapped to the nearest listed CCB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CCB 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 CCB covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 45.20%), the computed maximum profit is $642.00 per contract and the computed maximum loss is -$6,357.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CCB covered call?
- The breakeven for the CCB covered call priced on this page is roughly $63.58 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 CCB market-implied 1-standard-deviation expected move is approximately 12.96%; 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 CCB?
- Covered calls on CCB are an income strategy run on existing CCB 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 CCB implied volatility affect this covered call?
- CCB ATM IV is at 45.20% with IV rank near 4.49%, 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.