EVLV Covered Call Strategy
EVLV (Evolv Technologies Holdings, Inc.), in the Industrials sector, (Security & Protection Services industry), listed on NASDAQ.
Evolv Technologies Holdings, Inc. develops, manufactures, markets, and sells security screening products and specific services in the United States and internationally. It offers Evolv Express, that is designed to detect firearms, improvised explosive devices, and large tactical knives in unstructured people flows; Evolv eXpedite, an autonomous AI-based weapon detection system for bags being brought to venues by visitors in high clutter environments; and Evolv Insights Analytics Application which provides self-serve access, insights regarding visitor flow and arrival curves, location specific performance, system detection performance and alarm statistics, and comparisons across multiple business dimensions. The company serves various industries comprising education, healthcare, professional sports, notable performing arts and entertainment venues, major tourist destinations and cultural attractions, government and corporate offices, hospitality facilities, distribution facilities, large industrial workplaces, and houses of worship. Evolv Technologies Holdings, Inc. was founded in 2013 and is headquartered in Waltham, Massachusetts.
EVLV (Evolv Technologies Holdings, Inc.) trades in the Industrials sector, specifically Security & Protection Services, with a market capitalization of approximately $1.03B, a beta of 1.81 versus the broader market, a 52-week range of 4.865-8.91, average daily share volume of 2.5M, a public-listing history dating back to 2020, approximately 286 full-time employees. These structural characteristics shape how EVLV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.81 indicates EVLV has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a covered call on EVLV?
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.
EVLV snapshot
As of August 14, 2026, spot at $5.79, ATM IV 110.80%, IV rank 18.68%, expected move 31.77%. The covered call on EVLV 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 154-day expiry.
Why this covered call structure on EVLV specifically: EVLV IV at 110.80% is on the cheap side of its 1-year range, which means a premium-selling EVLV covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 31.77% (roughly $1.84 on the underlying). The 154-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated EVLV expiries trade a higher absolute premium for lower per-day decay. Position sizing on EVLV should anchor to the underlying notional of $5.79 per share and to the trader's directional view on EVLV stock.
EVLV covered call setup
The EVLV 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 EVLV at $5.79 on that close, the first option leg uses a $6.08 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EVLV chain at a 154-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 EVLV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $5.79 | long |
| Sell 1 | Call | $6.08 | N/A |
EVLV 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.
EVLV covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on EVLV. 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 EVLV
Covered calls on EVLV are an income strategy run on existing EVLV stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
EVLV thesis for this covered call
The market-implied 1-standard-deviation range for EVLV extends from approximately $3.95 on the downside to $7.63 on the upside. A EVLV covered call collects premium on an existing long EVLV position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether EVLV will breach that level within the expiration window. Current EVLV IV rank near 18.68% 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 EVLV at 110.80%. As a Industrials name, EVLV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EVLV-specific events.
EVLV 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. EVLV positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EVLV alongside the broader basket even when EVLV-specific fundamentals are unchanged. Short-premium structures like a covered call on EVLV carry tail risk when realized volatility exceeds the implied move; review historical EVLV earnings reactions and macro stress periods before sizing. Always rebuild the position from current EVLV chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on EVLV?
- A covered call on EVLV is the covered call strategy applied to EVLV (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 EVLV stock at $5.79 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed EVLV chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are EVLV 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 EVLV covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 110.80%), 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 EVLV covered call?
- The breakeven for the EVLV covered call priced on this page is no defined breakeven on the modeled curve 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 EVLV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 31.77%; 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 EVLV?
- Covered calls on EVLV are an income strategy run on existing EVLV 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 EVLV implied volatility affect this covered call?
- EVLV ATM IV is at 110.80% with IV rank near 18.68%, 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.