CDRE Covered Call Strategy
CDRE (Cadre Holdings, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.
Cadre Holdings, Inc. manufactures and distributes safety and survivability equipment that provides protection to users in hazardous or life-threatening situations in the United States and internationally. The company operates in two segments, Products and Distribution. It primarily provides body armor product, such as concealable, corrections, and tactical armor under the Safariland and Protech Tactical brands; survival suits, remotely operated vehicles, specialty tools, blast sensors, accessories, and vehicle blast attenuation seats for bomb safety technicians; bomb suits; duty gear, including belts and accessories; and other protective and law enforcement equipment comprising communications gear, forensic and investigation products, firearms cleaning solutions, and crowd control products. The company also offers third-party products, such as uniforms, optics, boots, firearms, and ammunition. It serves first responders, such as state and local law enforcement, fire and rescue, explosive ordnance disposal technicians, emergency medical technicians, fishing, and wildlife enforcement and departments of corrections, as well as federal agencies including the U.S. Department of State, U.S.
CDRE (Cadre Holdings, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $1.34B, a trailing P/E of 36.11, a beta of 1.32 versus the broader market, a 52-week range of 25.73-48.76, average daily share volume of 479K, a public-listing history dating back to 2021, approximately 2K full-time employees. These structural characteristics shape how CDRE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.32 indicates CDRE has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 36.11 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. CDRE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on CDRE?
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 CDRE snapshot
As of May 15, 2026, spot at $30.07, ATM IV 79.30%, IV rank 23.83%, expected move 22.73%. The covered call on CDRE 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 CDRE specifically: CDRE IV at 79.30% is on the cheap side of its 1-year range, which means a premium-selling CDRE covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 22.73% (roughly $6.84 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 CDRE expiries trade a higher absolute premium for lower per-day decay. Position sizing on CDRE should anchor to the underlying notional of $30.07 per share and to the trader's directional view on CDRE stock.
CDRE covered call setup
The CDRE 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 CDRE near $30.07, the first option leg uses a $31.57 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CDRE 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 CDRE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $30.07 | long |
| Sell 1 | Call | $31.57 | N/A |
CDRE 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.
CDRE covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CDRE. 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 CDRE
Covered calls on CDRE are an income strategy run on existing CDRE stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CDRE thesis for this covered call
The market-implied 1-standard-deviation range for CDRE extends from approximately $23.23 on the downside to $36.91 on the upside. A CDRE covered call collects premium on an existing long CDRE position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CDRE will breach that level within the expiration window. Current CDRE IV rank near 23.83% 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 CDRE at 79.30%. As a Industrials name, CDRE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CDRE-specific events.
CDRE 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. CDRE positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CDRE alongside the broader basket even when CDRE-specific fundamentals are unchanged. Short-premium structures like a covered call on CDRE carry tail risk when realized volatility exceeds the implied move; review historical CDRE earnings reactions and macro stress periods before sizing. Always rebuild the position from current CDRE chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CDRE?
- A covered call on CDRE is the covered call strategy applied to CDRE (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 CDRE stock trading near $30.07, the strikes shown on this page are snapped to the nearest listed CDRE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CDRE 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 CDRE covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 79.30%), 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 CDRE covered call?
- The breakeven for the CDRE 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 CDRE market-implied 1-standard-deviation expected move is approximately 22.73%; 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 CDRE?
- Covered calls on CDRE are an income strategy run on existing CDRE 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 CDRE implied volatility affect this covered call?
- CDRE ATM IV is at 79.30% with IV rank near 23.83%, 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.