ICHR Covered Call Strategy
ICHR (Ichor Holdings, Ltd.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Ichor Holdings, Ltd. engages in the design, engineering, and manufacture of fluid delivery subsystems and components for semiconductor capital equipment. It primarily offers gas and chemical delivery systems and subsystems that are used in the manufacturing of semiconductor devices. The company's gas delivery subsystems deliver, monitor, and control gases used in semiconductor manufacturing processes, such as etch and deposition; and chemical delivery subsystems blend and dispense the reactive liquid chemistries used in semiconductor manufacturing processes comprising chemical-mechanical planarization, electroplating, and cleaning. It also manufactures precision machined components, weldments, electron beam, laser-welded components, precision vacuum and hydrogen brazing, surface treatment technologies, and other proprietary products for use in fluid delivery systems. The company primarily markets its products directly and through resellers to equipment OEMs in the semiconductor equipment market in the United States, the United Kingdom, Singapore, Malaysia, Korea, Mexico, and internationally. Ichor Holdings, Ltd. was incorporated in 1999 and is headquartered in Fremont, California.
ICHR (Ichor Holdings, Ltd.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $2.58B, a beta of 1.88 versus the broader market, a 52-week range of 13.12-78, average daily share volume of 862K, a public-listing history dating back to 2016, approximately 2K full-time employees. These structural characteristics shape how ICHR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.88 indicates ICHR 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 ICHR?
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 ICHR snapshot
As of May 15, 2026, spot at $73.03, ATM IV 82.30%, IV rank 40.99%, expected move 23.59%. The covered call on ICHR 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 ICHR specifically: ICHR IV at 82.30% is mid-range versus its 1-year history, so the credit collected on a ICHR covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 23.59% (roughly $17.23 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 ICHR expiries trade a higher absolute premium for lower per-day decay. Position sizing on ICHR should anchor to the underlying notional of $73.03 per share and to the trader's directional view on ICHR stock.
ICHR covered call setup
The ICHR 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 ICHR near $73.03, the first option leg uses a $77.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ICHR 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 ICHR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $73.03 | long |
| Sell 1 | Call | $77.50 | $5.55 |
ICHR covered call risk and reward
- Net Premium / Debit
- -$6,748.00
- Max Profit (per contract)
- $1,002.00
- Max Loss (per contract)
- -$6,747.00
- Breakeven(s)
- $67.48
- Risk / Reward Ratio
- 0.149
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.
ICHR covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on ICHR. 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% | -$6,747.00 |
| $16.16 | -77.9% | -$5,132.38 |
| $32.30 | -55.8% | -$3,517.75 |
| $48.45 | -33.7% | -$1,903.13 |
| $64.59 | -11.6% | -$288.51 |
| $80.74 | +10.6% | +$1,002.00 |
| $96.89 | +32.7% | +$1,002.00 |
| $113.03 | +54.8% | +$1,002.00 |
| $129.18 | +76.9% | +$1,002.00 |
| $145.33 | +99.0% | +$1,002.00 |
When traders use covered call on ICHR
Covered calls on ICHR are an income strategy run on existing ICHR stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
ICHR thesis for this covered call
The market-implied 1-standard-deviation range for ICHR extends from approximately $55.80 on the downside to $90.26 on the upside. A ICHR covered call collects premium on an existing long ICHR position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether ICHR will breach that level within the expiration window. Current ICHR IV rank near 40.99% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on ICHR should anchor more to the directional view and the expected-move geometry. As a Technology name, ICHR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ICHR-specific events.
ICHR 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. ICHR positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ICHR alongside the broader basket even when ICHR-specific fundamentals are unchanged. Short-premium structures like a covered call on ICHR carry tail risk when realized volatility exceeds the implied move; review historical ICHR earnings reactions and macro stress periods before sizing. Always rebuild the position from current ICHR chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on ICHR?
- A covered call on ICHR is the covered call strategy applied to ICHR (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 ICHR stock trading near $73.03, the strikes shown on this page are snapped to the nearest listed ICHR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ICHR 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 ICHR covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 82.30%), the computed maximum profit is $1,002.00 per contract and the computed maximum loss is -$6,747.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ICHR covered call?
- The breakeven for the ICHR covered call priced on this page is roughly $67.48 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 ICHR market-implied 1-standard-deviation expected move is approximately 23.59%; 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 ICHR?
- Covered calls on ICHR are an income strategy run on existing ICHR 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 ICHR implied volatility affect this covered call?
- ICHR ATM IV is at 82.30% with IV rank near 40.99%, 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.