INTU Covered Call Strategy
INTU (Intuit Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Intuit Inc. provides financial management, payments and capital, compliance, and marketing products and services in the United States. The company operates in four segments: Global Business Solutions, Consumer, Credit Karma, and ProTax. The Global Business Solutions segment provides QuickBooks services, which include financial and business management online services, desktop software, payroll solutions, time tracking, merchant payment processing and bill pay solutions, checking accounts, and financing services for small and mid-market businesses; and Mailchimp, a marketing automation and customer relationship management. This segment also offers QuickBooks online services and desktop software solutions comprising QuickBooks Online, QuickBooks Live, QuickBooks Online Advanced, QuickBooks Self-Employed, QuickBooks Solopreneur financial and business management offerings, QuickBooks Online Payroll, QuickBooks Checking, QuickBooks Desktop software subscriptions, and QuickBooks Assisted Payroll. The Consumer segment provides do-it-yourself and assisted TurboTax income tax preparation products and services. The Credit Karma segment offers consumers with a personal finance platform that provides recommendations for credit card, home, auto, and personal loan, and insurance products; online savings and checking accounts; and access to its credit scores and reports, credit and identity monitoring, credit report dispute, credit building tools, and tools.
INTU (Intuit Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $94.55B, a trailing P/E of 20.81, a beta of 0.96 versus the broader market, a 52-week range of 252.84-721.54, average daily share volume of 4.7M, a public-listing history dating back to 1993, approximately 18K full-time employees. These structural characteristics shape how INTU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.96 places INTU roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. INTU pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on INTU?
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.
INTU snapshot
As of August 14, 2026, spot at $346.87, ATM IV 59.48%, IV rank 78.92%, expected move 17.05%. The covered call on INTU 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 28-day expiry.
Why this covered call structure on INTU specifically: INTU IV at 59.48% is rich versus its 1-year range, which favors premium-selling structures like a INTU covered call, with a market-implied 1-standard-deviation move of approximately 17.05% (roughly $59.15 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated INTU expiries trade a higher absolute premium for lower per-day decay. Position sizing on INTU should anchor to the underlying notional of $346.87 per share and to the trader's directional view on INTU stock.
INTU covered call setup
The INTU 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 INTU at $346.87 on that close, the first option leg uses a $365.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed INTU chain at a 28-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 INTU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $346.87 | long |
| Sell 1 | Call | $365.00 | $15.45 |
INTU covered call risk and reward
- Net Premium / Debit
- -$33,142.00
- Max Profit (per contract)
- $3,358.00
- Max Loss (per contract)
- -$33,141.00
- Breakeven(s)
- $331.42
- Risk / Reward Ratio
- 0.101
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.
INTU covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on INTU. 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% | -$33,141.00 |
| $76.70 | -77.9% | -$25,471.62 |
| $153.40 | -55.8% | -$17,802.25 |
| $230.09 | -33.7% | -$10,132.87 |
| $306.79 | -11.6% | -$2,463.49 |
| $383.48 | +10.6% | +$3,358.00 |
| $460.17 | +32.7% | +$3,358.00 |
| $536.87 | +54.8% | +$3,358.00 |
| $613.56 | +76.9% | +$3,358.00 |
| $690.25 | +99.0% | +$3,358.00 |
When traders use covered call on INTU
Covered calls on INTU are an income strategy run on existing INTU stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
INTU thesis for this covered call
The market-implied 1-standard-deviation range for INTU extends from approximately $287.72 on the downside to $406.02 on the upside. A INTU covered call collects premium on an existing long INTU position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether INTU will breach that level within the expiration window. Current INTU IV rank near 78.92% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on INTU at 59.48%. As a Technology name, INTU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to INTU-specific events.
INTU 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. INTU positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move INTU alongside the broader basket even when INTU-specific fundamentals are unchanged. Short-premium structures like a covered call on INTU carry tail risk when realized volatility exceeds the implied move; review historical INTU earnings reactions and macro stress periods before sizing. Always rebuild the position from current INTU chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on INTU?
- A covered call on INTU is the covered call strategy applied to INTU (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 INTU stock at $346.87 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed INTU chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are INTU 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 INTU covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 59.48%), the computed maximum profit is $3,358.00 per contract and the computed maximum loss is -$33,141.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a INTU covered call?
- The breakeven for the INTU covered call priced on this page is roughly $331.42 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 INTU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.05%; 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 INTU?
- Covered calls on INTU are an income strategy run on existing INTU 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 INTU implied volatility affect this covered call?
- INTU ATM IV is at 59.48% with IV rank near 78.92%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.