CCOI Covered Call Strategy
CCOI (Cogent Communications Holdings, Inc.), in the Communication Services sector, (Telecommunications Services industry), listed on NASDAQ.
Cogent Communications Holdings, Inc., founded in 1999 and based in Washington, D.C., functions as a multinational provider of high-speed internet connectivity, private networking solutions, and data center co-location services. Its extensive reach covers clients across North America, Europe, Asia, South America, Australia, and Africa. The company delivers its core services, including rapid internet access and secure private networks, in two primary ways: directly to customers located within buildings physically connected to its network (referred to as on-net services), and to those outside this direct infrastructure (off-net services). For corporate customers requiring off-net connections, Cogent frequently utilizes other carriers' circuits to complete the final segment of the network link to the customer's premises. Cogent serves a broad spectrum of organizations, from professional services firms like legal practices, financial institutions, advertising and marketing agencies, healthcare providers, and educational institutions, to other key players in the communications sector. This includes other internet service providers, telephone and cable television companies, web hosting providers, media and mobile phone operators, content delivery networks, and commercial content/application developers.
CCOI (Cogent Communications Holdings, Inc.) trades in the Communication Services sector, specifically Telecommunications Services, with a market capitalization of approximately $671.5M, a beta of 0.75 versus the broader market, a 52-week range of 12.84-54.37, average daily share volume of 1.2M, a public-listing history dating back to 2002, approximately 2K full-time employees. These structural characteristics shape how CCOI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.75 places CCOI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CCOI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on CCOI?
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 CCOI snapshot
As of June 29, 2026, spot at $13.13, ATM IV 100.00%, IV rank 52.85%, expected move 28.67%. The covered call on CCOI 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 18-day expiry.
Why this covered call structure on CCOI specifically: CCOI IV at 100.00% is mid-range versus its 1-year history, so the credit collected on a CCOI covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 28.67% (roughly $3.76 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CCOI expiries trade a higher absolute premium for lower per-day decay. Position sizing on CCOI should anchor to the underlying notional of $13.13 per share and to the trader's directional view on CCOI stock.
CCOI covered call setup
The CCOI 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 CCOI near $13.13, the first option leg uses a $13.79 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CCOI chain at a 18-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 CCOI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $13.13 | long |
| Sell 1 | Call | $13.79 | N/A |
CCOI 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.
CCOI covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CCOI. 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 CCOI
Covered calls on CCOI are an income strategy run on existing CCOI stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CCOI thesis for this covered call
The market-implied 1-standard-deviation range for CCOI extends from approximately $9.37 on the downside to $16.89 on the upside. A CCOI covered call collects premium on an existing long CCOI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CCOI will breach that level within the expiration window. Current CCOI IV rank near 52.85% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on CCOI should anchor more to the directional view and the expected-move geometry. As a Communication Services name, CCOI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CCOI-specific events.
CCOI 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. CCOI positions also carry Communication Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CCOI alongside the broader basket even when CCOI-specific fundamentals are unchanged. Short-premium structures like a covered call on CCOI carry tail risk when realized volatility exceeds the implied move; review historical CCOI earnings reactions and macro stress periods before sizing. Always rebuild the position from current CCOI chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CCOI?
- A covered call on CCOI is the covered call strategy applied to CCOI (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 CCOI stock trading near $13.13, the strikes shown on this page are snapped to the nearest listed CCOI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CCOI 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 CCOI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 100.00%), 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 CCOI covered call?
- The breakeven for the CCOI 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 CCOI market-implied 1-standard-deviation expected move is approximately 28.67%; 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 CCOI?
- Covered calls on CCOI are an income strategy run on existing CCOI 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 CCOI implied volatility affect this covered call?
- CCOI ATM IV is at 100.00% with IV rank near 52.85%, 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.