INTU Covered Call Strategy
INTU (Intuit Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Intuit Inc. provides financial management and compliance products and services for consumers, small businesses, self-employed, and accounting professionals in the United States, Canada, and internationally. The company operates in four segments: Small Business & Self-Employed, Consumer, Credit Karma, and ProConnect. The Small Business & Self-Employed segment provides QuickBooks online services and desktop software solutions comprising QuickBooks Online Advanced, a cloud-based solution; QuickBooks Enterprise, a hosted solution; QuickBooks Self-Employed solution; QuickBooks Commerce, a solution for product-based businesses; QuickBooks Online Accountant and QuickBooks Accountant Desktop Plus solutions; and payroll solutions, such as online payroll processing, direct deposit of employee paychecks, payroll reports, electronic payment of federal and state payroll taxes, and electronic filing of federal and state payroll tax forms. This segment also offers payment-processing solutions, including credit and debit cards, Apple Pay, and ACH payment services; QuickBooks Cash business bank account; and financial supplies and financing for small businesses. The Consumer segment provides TurboTax income tax preparation products and services; and personal finance. The Credit Karma segment offers consumers with a personal finance platform that provides personalized recommendations of home, auto, and personal loans, as well as credit cards and insurance products.
INTU (Intuit Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $103.44B, a trailing P/E of 23.90, a beta of 1.04 versus the broader market, a 52-week range of 342.11-813.7, average daily share volume of 3.7M, a public-listing history dating back to 1993, approximately 19K 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 1.04 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.
Current INTU snapshot
As of May 15, 2026, spot at $394.09, ATM IV 61.77%, IV rank 87.19%, expected move 17.71%. The covered call on INTU 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 28-day expiry.
Why this covered call structure on INTU specifically: INTU IV at 61.77% 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 17.71% (roughly $69.79 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 $394.09 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 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With INTU near $394.09, the first option leg uses a $415.00 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 | $394.09 | long |
| Sell 1 | Call | $415.00 | $18.65 |
INTU covered call risk and reward
- Net Premium / Debit
- -$37,544.00
- Max Profit (per contract)
- $3,956.00
- Max Loss (per contract)
- -$37,543.00
- Breakeven(s)
- $375.44
- Risk / Reward Ratio
- 0.105
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% | -$37,543.00 |
| $87.14 | -77.9% | -$28,829.56 |
| $174.28 | -55.8% | -$20,116.13 |
| $261.41 | -33.7% | -$11,402.69 |
| $348.55 | -11.6% | -$2,689.25 |
| $435.68 | +10.6% | +$3,956.00 |
| $522.82 | +32.7% | +$3,956.00 |
| $609.95 | +54.8% | +$3,956.00 |
| $697.08 | +76.9% | +$3,956.00 |
| $784.22 | +99.0% | +$3,956.00 |
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 $324.30 on the downside to $463.88 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 87.19% 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 61.77%. 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 trading near $394.09, the strikes shown on this page are snapped to the nearest listed INTU chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 61.77%), the computed maximum profit is $3,956.00 per contract and the computed maximum loss is -$37,543.00 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 $375.44 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 INTU market-implied 1-standard-deviation expected move is approximately 17.71%; 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 61.77% with IV rank near 87.19%, 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.