CHPT Covered Call Strategy
CHPT (ChargePoint Holdings, Inc.), in the Consumer Cyclical sector, (Specialty Retail industry), listed on NYSE.
ChargePoint Holdings, Inc. operates by developing and supplying extensive electric vehicle (EV) charging networks and comprehensive charging solutions, serving both the United States and global markets. The company provides a varied array of hardware, sophisticated software platforms, and supporting services, catering to a broad client base including commercial businesses, fleet operators, and private residential users. Established in 2007, ChargePoint's corporate headquarters are located in Campbell, California.
CHPT (ChargePoint Holdings, Inc.) trades in the Consumer Cyclical sector, specifically Specialty Retail, with a market capitalization of approximately $165.7M, a beta of 1.76 versus the broader market, a 52-week range of 4.44-12.62, average daily share volume of 602K, a public-listing history dating back to 2019, approximately 1K full-time employees. These structural characteristics shape how CHPT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.76 indicates CHPT 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 CHPT?
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.
CHPT snapshot
As of August 14, 2026, spot at $6.24, ATM IV 85.50%, IV rank 17.27%, expected move 24.51%. The covered call on CHPT below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this covered call structure on CHPT specifically: CHPT IV at 85.50% is on the cheap side of its 1-year range, which means a premium-selling CHPT covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 24.51% (roughly $1.53 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CHPT expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHPT should anchor to the underlying notional of $6.24 per share and to the trader's directional view on CHPT stock.
CHPT covered call setup
The CHPT 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 CHPT at $6.24 on that close, the first option leg uses a $6.55 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHPT chain at a 35-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 CHPT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $6.24 | long |
| Sell 1 | Call | $6.55 | N/A |
CHPT 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.
CHPT covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CHPT. 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 CHPT
Covered calls on CHPT are an income strategy run on existing CHPT stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CHPT thesis for this covered call
The market-implied 1-standard-deviation range for CHPT extends from approximately $4.71 on the downside to $7.77 on the upside. A CHPT covered call collects premium on an existing long CHPT position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CHPT will breach that level within the expiration window. Current CHPT IV rank near 17.27% 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 CHPT at 85.50%. As a Consumer Cyclical name, CHPT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHPT-specific events.
CHPT 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. CHPT positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CHPT alongside the broader basket even when CHPT-specific fundamentals are unchanged. Short-premium structures like a covered call on CHPT carry tail risk when realized volatility exceeds the implied move; review historical CHPT earnings reactions and macro stress periods before sizing. Always rebuild the position from current CHPT chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CHPT?
- A covered call on CHPT is the covered call strategy applied to CHPT (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 CHPT stock at $6.24 on the most recent close, the strikes shown on this page are snapped to the nearest listed CHPT chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CHPT 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 CHPT covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 85.50%), 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 CHPT covered call?
- The breakeven for the CHPT covered call priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 CHPT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 24.51%; 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 CHPT?
- Covered calls on CHPT are an income strategy run on existing CHPT 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 CHPT implied volatility affect this covered call?
- CHPT ATM IV is at 85.50% with IV rank near 17.27%, 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.