ENTG Covered Call Strategy
ENTG (Entegris, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Entegris, Inc. develops, manufactures, and supplies microcontamination control products, specialty chemicals, and advanced materials handling solutions in North America, Taiwan, China, South Korea, Japan, Europe, and Southeast Asia. It operates in three segments: Specialty Chemicals and Engineered Materials (SCEM); Microcontamination Control (MC); and Advanced Materials Handling (AMH). The SCEM segment offers high-performance and high-purity process chemistries, gases, and materials, as well as delivery systems to support semiconductor and other advanced manufacturing processes. The MC segment provides solutions to filter and purify critical liquid chemistries and gases used in semiconductor manufacturing processes and other high-technology industries. The AMH segment develops solutions to monitor, protect, transport, and deliver critical liquid chemistries, wafers, and other substrates for application in the semiconductor, life sciences, and other high-technology industries. The company's customers include logic and memory semiconductor device manufacturers, semiconductor equipment makers, gas and chemical manufacturing companies, and wafer grower companies; and flat panel display equipment makers, panel manufacturers, and manufacturers of hard disk drive components and devices, as well as their related ecosystems.
ENTG (Entegris, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $22.09B, a trailing P/E of 83.51, a beta of 1.40 versus the broader market, a 52-week range of 66.32-159.15, average daily share volume of 2.6M, a public-listing history dating back to 2000, approximately 8K full-time employees. These structural characteristics shape how ENTG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.40 indicates ENTG 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 83.51 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. ENTG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on ENTG?
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 ENTG snapshot
As of May 15, 2026, spot at $133.79, ATM IV 64.40%, IV rank 40.51%, expected move 18.46%. The covered call on ENTG 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 ENTG specifically: ENTG IV at 64.40% is mid-range versus its 1-year history, so the credit collected on a ENTG covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 18.46% (roughly $24.70 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 ENTG expiries trade a higher absolute premium for lower per-day decay. Position sizing on ENTG should anchor to the underlying notional of $133.79 per share and to the trader's directional view on ENTG stock.
ENTG covered call setup
The ENTG 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 ENTG near $133.79, the first option leg uses a $140.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ENTG 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 ENTG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $133.79 | long |
| Sell 1 | Call | $140.00 | $8.65 |
ENTG covered call risk and reward
- Net Premium / Debit
- -$12,514.00
- Max Profit (per contract)
- $1,486.00
- Max Loss (per contract)
- -$12,513.00
- Breakeven(s)
- $125.14
- 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.
ENTG covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on ENTG. 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% | -$12,513.00 |
| $29.59 | -77.9% | -$9,554.94 |
| $59.17 | -55.8% | -$6,596.88 |
| $88.75 | -33.7% | -$3,638.82 |
| $118.33 | -11.6% | -$680.76 |
| $147.91 | +10.6% | +$1,486.00 |
| $177.49 | +32.7% | +$1,486.00 |
| $207.07 | +54.8% | +$1,486.00 |
| $236.65 | +76.9% | +$1,486.00 |
| $266.24 | +99.0% | +$1,486.00 |
When traders use covered call on ENTG
Covered calls on ENTG are an income strategy run on existing ENTG stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
ENTG thesis for this covered call
The market-implied 1-standard-deviation range for ENTG extends from approximately $109.09 on the downside to $158.49 on the upside. A ENTG covered call collects premium on an existing long ENTG position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether ENTG will breach that level within the expiration window. Current ENTG IV rank near 40.51% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on ENTG should anchor more to the directional view and the expected-move geometry. As a Technology name, ENTG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ENTG-specific events.
ENTG 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. ENTG positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ENTG alongside the broader basket even when ENTG-specific fundamentals are unchanged. Short-premium structures like a covered call on ENTG carry tail risk when realized volatility exceeds the implied move; review historical ENTG earnings reactions and macro stress periods before sizing. Always rebuild the position from current ENTG chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on ENTG?
- A covered call on ENTG is the covered call strategy applied to ENTG (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 ENTG stock trading near $133.79, the strikes shown on this page are snapped to the nearest listed ENTG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ENTG 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 ENTG covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 64.40%), the computed maximum profit is $1,486.00 per contract and the computed maximum loss is -$12,513.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ENTG covered call?
- The breakeven for the ENTG covered call priced on this page is roughly $125.14 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 ENTG market-implied 1-standard-deviation expected move is approximately 18.46%; 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 ENTG?
- Covered calls on ENTG are an income strategy run on existing ENTG 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 ENTG implied volatility affect this covered call?
- ENTG ATM IV is at 64.40% with IV rank near 40.51%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.