CEVA Covered Call Strategy
CEVA (CEVA, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
CEVA, Inc. is a global provider of intellectual property (IP) for advanced wireless connectivity and intelligent sensing solutions, serving semiconductor manufacturers and original equipment manufacturers (OEMs). The company specializes in developing and licensing a broad range of digital signal processors (DSPs), AI accelerators, wireless communication platforms, and complementary software. These offerings are engineered to support applications such as sensor data integration, image enhancement, machine vision, voice command processing, and artificial intelligence. CEVA's extensive IP portfolio features DSP-driven platforms for 5G baseband processing in mobile, IoT, and infrastructure environments, alongside sophisticated imaging and computer vision capabilities for all camera-enabled devices. They also offer ultra-low power audio, voice, and speech processing, including always-on sensing functionalities for a wide spectrum of IoT markets. Furthermore, their solutions include sensor fusion software and Inertial Measurement Unit (IMU) technologies, specifically designed for hearables, wearables, augmented/virtual reality (AR/VR) systems, personal computers, robotics, remote controls, and other IoT applications.
CEVA (CEVA, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $1.18B, a beta of 2.01 versus the broader market, a 52-week range of 17.02-51.6, average daily share volume of 812K, a public-listing history dating back to 2002, approximately 406 full-time employees. These structural characteristics shape how CEVA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.01 indicates CEVA 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 CEVA?
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 CEVA snapshot
As of June 30, 2026, spot at $47.65, ATM IV 102.80%, IV rank 62.33%, expected move 29.47%. The covered call on CEVA 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 17-day expiry.
Why this covered call structure on CEVA specifically: CEVA IV at 102.80% is mid-range versus its 1-year history, so the credit collected on a CEVA covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 29.47% (roughly $14.04 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CEVA expiries trade a higher absolute premium for lower per-day decay. Position sizing on CEVA should anchor to the underlying notional of $47.65 per share and to the trader's directional view on CEVA stock.
CEVA covered call setup
The CEVA 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 CEVA near $47.65, the first option leg uses a $50.03 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CEVA chain at a 17-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 CEVA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $47.65 | long |
| Sell 1 | Call | $50.03 | N/A |
CEVA 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.
CEVA covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CEVA. 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 CEVA
Covered calls on CEVA are an income strategy run on existing CEVA stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CEVA thesis for this covered call
The market-implied 1-standard-deviation range for CEVA extends from approximately $33.61 on the downside to $61.69 on the upside. A CEVA covered call collects premium on an existing long CEVA position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CEVA will breach that level within the expiration window. Current CEVA IV rank near 62.33% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on CEVA should anchor more to the directional view and the expected-move geometry. As a Technology name, CEVA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CEVA-specific events.
CEVA 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. CEVA positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CEVA alongside the broader basket even when CEVA-specific fundamentals are unchanged. Short-premium structures like a covered call on CEVA carry tail risk when realized volatility exceeds the implied move; review historical CEVA earnings reactions and macro stress periods before sizing. Always rebuild the position from current CEVA chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CEVA?
- A covered call on CEVA is the covered call strategy applied to CEVA (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 CEVA stock trading near $47.65, the strikes shown on this page are snapped to the nearest listed CEVA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CEVA 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 CEVA covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 102.80%), 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 CEVA covered call?
- The breakeven for the CEVA 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 CEVA market-implied 1-standard-deviation expected move is approximately 29.47%; 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 CEVA?
- Covered calls on CEVA are an income strategy run on existing CEVA 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 CEVA implied volatility affect this covered call?
- CEVA ATM IV is at 102.80% with IV rank near 62.33%, 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.