CRUS Covered Call Strategy
CRUS (Cirrus Logic, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Cirrus Logic, Inc. (CRUS) is a semiconductor design firm that doesn't operate its own manufacturing plants. It specializes in crafting energy-efficient and highly accurate mixed-signal processing solutions for a worldwide customer base. The company's offerings for portable electronics include various audio components: integrated circuits known as codecs (which combine analog-to-digital and digital-to-analog converters), advanced "smart codecs" that feature built-in digital signal processors (DSPs), powerful amplifiers, and standalone DSPs. Their proprietary SoundClear technology, a suite of tools, software, and algorithms, further elevates the user experience by delivering features such as increased volume, high-fidelity sound reproduction, superior voice capture, hearing assistance, and active noise cancellation. These audio technologies are integrated into a wide array of devices, including smartphones, tablets, wireless headphones, laptops, augmented/virtual reality headsets, home cinema systems, in-car entertainment, and professional audio setups. Additionally, Cirrus Logic supplies high-performance mixed-signal products beyond the audio domain.
CRUS (Cirrus Logic, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $6.15B, a trailing P/E of 14.31, a beta of 1.18 versus the broader market, a 52-week range of 107.39-180.42, average daily share volume of 656K, a public-listing history dating back to 1989, approximately 2K full-time employees. These structural characteristics shape how CRUS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.18 places CRUS 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 CRUS?
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.
CRUS snapshot
As of August 14, 2026, spot at $120.90, ATM IV 33.60%, IV rank 9.09%, expected move 9.63%. The covered call on CRUS below is built from the August 14, 2026 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 CRUS specifically: CRUS IV at 33.60% is on the cheap side of its 1-year range, which means a premium-selling CRUS covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.63% (roughly $11.65 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 CRUS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRUS should anchor to the underlying notional of $120.90 per share and to the trader's directional view on CRUS stock.
CRUS covered call setup
The CRUS covered call below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CRUS at $120.90 on that close, the first option leg uses a $125.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRUS 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 CRUS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $120.90 | long |
| Sell 1 | Call | $125.00 | $3.45 |
CRUS covered call risk and reward
- Net Premium / Debit
- -$11,745.00
- Max Profit (per contract)
- $755.00
- Max Loss (per contract)
- -$11,744.00
- Breakeven(s)
- $117.45
- Risk / Reward Ratio
- 0.064
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.
CRUS covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CRUS. 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% | -$11,744.00 |
| $26.74 | -77.9% | -$9,070.94 |
| $53.47 | -55.8% | -$6,397.89 |
| $80.20 | -33.7% | -$3,724.83 |
| $106.93 | -11.6% | -$1,051.78 |
| $133.66 | +10.6% | +$755.00 |
| $160.39 | +32.7% | +$755.00 |
| $187.12 | +54.8% | +$755.00 |
| $213.85 | +76.9% | +$755.00 |
| $240.58 | +99.0% | +$755.00 |
When traders use covered call on CRUS
Covered calls on CRUS are an income strategy run on existing CRUS stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CRUS thesis for this covered call
The market-implied 1-standard-deviation range for CRUS extends from approximately $109.25 on the downside to $132.55 on the upside. A CRUS covered call collects premium on an existing long CRUS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CRUS will breach that level within the expiration window. Current CRUS IV rank near 9.09% 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 CRUS at 33.60%. As a Technology name, CRUS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRUS-specific events.
CRUS 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. CRUS positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CRUS alongside the broader basket even when CRUS-specific fundamentals are unchanged. Short-premium structures like a covered call on CRUS carry tail risk when realized volatility exceeds the implied move; review historical CRUS earnings reactions and macro stress periods before sizing. Always rebuild the position from current CRUS chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CRUS?
- A covered call on CRUS is the covered call strategy applied to CRUS (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 CRUS stock at $120.90 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CRUS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CRUS 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 CRUS covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.60%), the computed maximum profit is $755.00 per contract and the computed maximum loss is -$11,744.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CRUS covered call?
- The breakeven for the CRUS covered call priced on this page is roughly $117.45 at expiration, derived from the August 14, 2026 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 CRUS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.63%; 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 CRUS?
- Covered calls on CRUS are an income strategy run on existing CRUS 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 CRUS implied volatility affect this covered call?
- CRUS ATM IV is at 33.60% with IV rank near 9.09%, 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.