DUOT Covered Call Strategy

DUOT (Duos Technologies Group, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.

Duos Technologies Group, Inc. designs, develops, deploys, and operates intelligent technology solutions in North America. Its technology platforms used in its solutions include centraco, an enterprise information management system; and truevue360, an integrated platform to develop and deploy artificial intelligence algorithms, including machine learning, computer vision, object detection, and deep neural network-based processing for real-time applications, as well as Praesidium to manage various image capture devices and some sensors for input into the centraco software. The company's proprietary applications include Railcar Inspection Portal for the automated inspection of freight and transit trains while in motion; Vehicle Undercarriage Examiner to inspect the undercarriage of railcars; Thermal Undercarriage Examiner; Enterprise Command and Control Suite for information consolidation, connectivity, and communications; and Automated Logistics Information Systems, a proprietary intelligent system to automate security gate operations. It also provides IT asset management services for data centers operators; maintenance and technical support services; consulting and auditing; software licensing with optional hardware sales; and training services. The company is headquartered in Jacksonville, Florida.

DUOT (Duos Technologies Group, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $170.1M, a beta of 1.07 versus the broader market, a 52-week range of 5.775-12.17, average daily share volume of 558K, a public-listing history dating back to 2017, approximately 79 full-time employees. These structural characteristics shape how DUOT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.07 places DUOT 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 DUOT?

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 DUOT snapshot

As of May 15, 2026, spot at $8.96, ATM IV 108.90%, expected move 31.22%. The covered call on DUOT 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 DUOT specifically: IV rank is unavailable in the current snapshot, so regime-based timing for DUOT is inferred from ATM IV at 108.90% alone, with a market-implied 1-standard-deviation move of approximately 31.22% (roughly $2.80 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 DUOT expiries trade a higher absolute premium for lower per-day decay. Position sizing on DUOT should anchor to the underlying notional of $8.96 per share and to the trader's directional view on DUOT stock.

DUOT covered call setup

The DUOT 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 DUOT near $8.96, the first option leg uses a $9.41 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DUOT 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 DUOT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$8.96	long
Sell 1	Call	$9.41	N/A

DUOT 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.

DUOT covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on DUOT. 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 DUOT

Covered calls on DUOT are an income strategy run on existing DUOT stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.

DUOT thesis for this covered call

The market-implied 1-standard-deviation range for DUOT extends from approximately $6.16 on the downside to $11.76 on the upside. A DUOT covered call collects premium on an existing long DUOT position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether DUOT will breach that level within the expiration window. As a Technology name, DUOT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DUOT-specific events.

DUOT 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. DUOT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DUOT alongside the broader basket even when DUOT-specific fundamentals are unchanged. Short-premium structures like a covered call on DUOT carry tail risk when realized volatility exceeds the implied move; review historical DUOT earnings reactions and macro stress periods before sizing. Always rebuild the position from current DUOT chain quotes before placing a trade.

Frequently asked questions

What is a covered call on DUOT?: A covered call on DUOT is the covered call strategy applied to DUOT (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 DUOT stock trading near $8.96, the strikes shown on this page are snapped to the nearest listed DUOT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are DUOT 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 DUOT covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 108.90%), 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 DUOT covered call?: The breakeven for the DUOT 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 DUOT market-implied 1-standard-deviation expected move is approximately 31.22%; 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 DUOT?: Covered calls on DUOT are an income strategy run on existing DUOT 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 DUOT implied volatility affect this covered call?: Current DUOT ATM IV is 108.90%; IV rank context is unavailable in the current snapshot.