GILT Covered Call Strategy

GILT (Gilat Satellite Networks Ltd.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.

Gilat Satellite Networks Ltd., along with its affiliated companies, delivers advanced satellite-based broadband communication solutions both in Israel and across international markets. Its operations are structured across three primary divisions: Fixed Networks, Mobility Solutions, and Terrestrial Infrastructure Projects. The company is involved in both the engineering and production of terrestrial satellite communication hardware, as well as the provision of comprehensive, full-spectrum solutions and services. Its product offerings encompass a wide array of specialized satellite ground equipment. This includes various very small aperture terminals (VSATs), both fixed and mobile antennas, amplifiers, modems, transceivers, and other critical components like solid state power amplifiers (SSPAs) and block upconverters (BUCs). Furthermore, Gilat delivers integrated, end-to-end solutions.

GILT (Gilat Satellite Networks Ltd.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $877.0M, a trailing P/E of 29.56, a beta of 1.08 versus the broader market, a 52-week range of 8.52-20.93, average daily share volume of 793K, a public-listing history dating back to 1993, approximately 1K full-time employees. These structural characteristics shape how GILT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.08 places GILT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. GILT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on GILT?

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.

GILT snapshot

As of August 14, 2026, spot at $11.48, ATM IV 64.60%, IV rank 17.25%, expected move 18.52%. The covered call on GILT below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this covered call structure on GILT specifically: GILT IV at 64.60% is on the cheap side of its 1-year range, which means a premium-selling GILT covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 18.52% (roughly $2.13 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GILT expiries trade a higher absolute premium for lower per-day decay. Position sizing on GILT should anchor to the underlying notional of $11.48 per share and to the trader's directional view on GILT stock.

GILT covered call setup

The GILT 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 GILT at $11.48 on that close, the first option leg uses a $12.05 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GILT chain at a 35-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 GILT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$11.48	long
Sell 1	Call	$12.05	N/A

GILT 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.

GILT covered call payoff curve

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

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

GILT thesis for this covered call

The market-implied 1-standard-deviation range for GILT extends from approximately $9.35 on the downside to $13.61 on the upside. A GILT covered call collects premium on an existing long GILT position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether GILT will breach that level within the expiration window. Current GILT IV rank near 17.25% 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 GILT at 64.60%. As a Technology name, GILT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GILT-specific events.

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

Frequently asked questions

What is a covered call on GILT?: A covered call on GILT is the covered call strategy applied to GILT (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 GILT stock at $11.48 on the most recent close, the strikes shown on this page are snapped to the nearest listed GILT chain strike and the premiums come straight from that session's bid/ask midpoint.
How are GILT 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 GILT covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 64.60%), 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 GILT covered call?: The breakeven for the GILT covered call priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 GILT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.52%; 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 GILT?: Covered calls on GILT are an income strategy run on existing GILT 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 GILT implied volatility affect this covered call?: GILT ATM IV is at 64.60% with IV rank near 17.25%, 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.