CUBI Covered Call Strategy
CUBI (Customers Bancorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.
Customers Bancorp, Inc. operates as the bank holding company for Customers Bank that provides financial products and services to individual consumers, and small and middle market businesses. The company offers deposits products, including checking, savings, MMDA, and other deposits accounts. It offers loan products, including commercial mortgage warehouse loans, multi-family and commercial real estate loans, business banking, small business loans, equipment financing, residential mortgage loans, and installment loans. It also offers traditional banking activities, including mobile phone banking, internet banking, wire transfers, electronic bill payment, lock box services, remote deposit capture services, courier services, merchant processing services, cash vault, controlled disbursements, positive pay, cash management services, such as account reconciliation, collections, and sweep accounts. It operates 12 full-service branches, as well as limited production and administrative offices in Southeastern Pennsylvania, including Bucks, Berks, Chester, Philadelphia, and Delaware Counties; Harrisburg, Pennsylvania; Rye Brook and New York; Hamilton, New Jersey; Boston, Massachusetts; Providence, Rhode Island; Portsmouth, New Hampshire; Manhattan and Melville, New York; Washington D.C.; Chicago, Illinois; Dallas, Texas; Orlando, Florida; and Wilmington, North Carolina. Customers Bancorp, Inc. was founded in 1994 and is headquartered in West Reading, Pennsylvania.
CUBI (Customers Bancorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $2.46B, a trailing P/E of 8.81, a beta of 1.53 versus the broader market, a 52-week range of 49.54-82.56, average daily share volume of 389K, a public-listing history dating back to 2012, approximately 787 full-time employees. These structural characteristics shape how CUBI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.53 indicates CUBI 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 8.81 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a covered call on CUBI?
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 CUBI snapshot
As of May 15, 2026, spot at $72.22, ATM IV 36.40%, IV rank 19.90%, expected move 10.44%. The covered call on CUBI 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 98-day expiry.
Why this covered call structure on CUBI specifically: CUBI IV at 36.40% is on the cheap side of its 1-year range, which means a premium-selling CUBI covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 10.44% (roughly $7.54 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CUBI expiries trade a higher absolute premium for lower per-day decay. Position sizing on CUBI should anchor to the underlying notional of $72.22 per share and to the trader's directional view on CUBI stock.
CUBI covered call setup
The CUBI 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 CUBI near $72.22, the first option leg uses a $75.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CUBI chain at a 98-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 CUBI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $72.22 | long |
| Sell 1 | Call | $75.00 | $5.20 |
CUBI covered call risk and reward
- Net Premium / Debit
- -$6,702.00
- Max Profit (per contract)
- $798.00
- Max Loss (per contract)
- -$6,701.00
- Breakeven(s)
- $67.02
- Risk / Reward Ratio
- 0.119
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.
CUBI covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CUBI. 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% | -$6,701.00 |
| $15.98 | -77.9% | -$5,104.29 |
| $31.94 | -55.8% | -$3,507.57 |
| $47.91 | -33.7% | -$1,910.86 |
| $63.88 | -11.6% | -$314.15 |
| $79.85 | +10.6% | +$798.00 |
| $95.81 | +32.7% | +$798.00 |
| $111.78 | +54.8% | +$798.00 |
| $127.75 | +76.9% | +$798.00 |
| $143.71 | +99.0% | +$798.00 |
When traders use covered call on CUBI
Covered calls on CUBI are an income strategy run on existing CUBI stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CUBI thesis for this covered call
The market-implied 1-standard-deviation range for CUBI extends from approximately $64.68 on the downside to $79.76 on the upside. A CUBI covered call collects premium on an existing long CUBI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CUBI will breach that level within the expiration window. Current CUBI IV rank near 19.90% 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 CUBI at 36.40%. As a Financial Services name, CUBI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CUBI-specific events.
CUBI 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. CUBI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CUBI alongside the broader basket even when CUBI-specific fundamentals are unchanged. Short-premium structures like a covered call on CUBI carry tail risk when realized volatility exceeds the implied move; review historical CUBI earnings reactions and macro stress periods before sizing. Always rebuild the position from current CUBI chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CUBI?
- A covered call on CUBI is the covered call strategy applied to CUBI (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 CUBI stock trading near $72.22, the strikes shown on this page are snapped to the nearest listed CUBI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CUBI 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 CUBI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 36.40%), the computed maximum profit is $798.00 per contract and the computed maximum loss is -$6,701.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CUBI covered call?
- The breakeven for the CUBI covered call priced on this page is roughly $67.02 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 CUBI market-implied 1-standard-deviation expected move is approximately 10.44%; 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 CUBI?
- Covered calls on CUBI are an income strategy run on existing CUBI 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 CUBI implied volatility affect this covered call?
- CUBI ATM IV is at 36.40% with IV rank near 19.90%, 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.