CXDO Covered Call Strategy
CXDO (Crexendo, Inc.), in the Communication Services sector, (Telecommunications Services industry), listed on NASDAQ.
Crexendo, Inc. provides cloud communication, unified communications as a service, call center, collaboration, and other cloud business services for businesses in the United States, Canada, and internationally. It operates through two segments, Cloud Telecommunications and Web Services. The Cloud Telecommunications segment provides telecommunications services that transmit calls using Internet protocol (IP) or cloud technology, which converts voice signals into digital data packets for transmission over the Internet or cloud; and resells broadband Internet services. This segment is also involved in the sale and lease of cloud telecommunications equipment. In addition, it offers hardware, software, and unified communication solutions for businesses using IP or cloud technology over high-speed internet connection through various devices and user interfaces, such as desktop phones and/or mobile, and desktop applications under the Crexendo brand name. The Web Services segment provides website hosting and other professional services.
CXDO (Crexendo, Inc.) trades in the Communication Services sector, specifically Telecommunications Services, with a market capitalization of approximately $302.8M, a trailing P/E of 65.77, a beta of 0.93 versus the broader market, a 52-week range of 5.08-9.84, average daily share volume of 257K, a public-listing history dating back to 2018, approximately 179 full-time employees. These structural characteristics shape how CXDO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.93 places CXDO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 65.77 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.
What is a covered call on CXDO?
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 CXDO snapshot
As of May 15, 2026, spot at $9.87, ATM IV 82.50%, IV rank 28.05%, expected move 23.65%. The covered call on CXDO 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 CXDO specifically: CXDO IV at 82.50% is on the cheap side of its 1-year range, which means a premium-selling CXDO covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 23.65% (roughly $2.33 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 CXDO expiries trade a higher absolute premium for lower per-day decay. Position sizing on CXDO should anchor to the underlying notional of $9.87 per share and to the trader's directional view on CXDO stock.
CXDO covered call setup
The CXDO 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 CXDO near $9.87, the first option leg uses a $10.36 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CXDO 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 CXDO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $9.87 | long |
| Sell 1 | Call | $10.36 | N/A |
CXDO 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.
CXDO covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CXDO. 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 CXDO
Covered calls on CXDO are an income strategy run on existing CXDO stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CXDO thesis for this covered call
The market-implied 1-standard-deviation range for CXDO extends from approximately $7.54 on the downside to $12.20 on the upside. A CXDO covered call collects premium on an existing long CXDO position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CXDO will breach that level within the expiration window. Current CXDO IV rank near 28.05% 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 CXDO at 82.50%. As a Communication Services name, CXDO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CXDO-specific events.
CXDO 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. CXDO positions also carry Communication Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CXDO alongside the broader basket even when CXDO-specific fundamentals are unchanged. Short-premium structures like a covered call on CXDO carry tail risk when realized volatility exceeds the implied move; review historical CXDO earnings reactions and macro stress periods before sizing. Always rebuild the position from current CXDO chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CXDO?
- A covered call on CXDO is the covered call strategy applied to CXDO (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 CXDO stock trading near $9.87, the strikes shown on this page are snapped to the nearest listed CXDO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CXDO 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 CXDO covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 82.50%), 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 CXDO covered call?
- The breakeven for the CXDO 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 CXDO market-implied 1-standard-deviation expected move is approximately 23.65%; 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 CXDO?
- Covered calls on CXDO are an income strategy run on existing CXDO 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 CXDO implied volatility affect this covered call?
- CXDO ATM IV is at 82.50% with IV rank near 28.05%, 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.