ITRI Covered Call Strategy
ITRI (Itron, Inc.), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NASDAQ.
Itron, Inc., a technology and service company, provides end-to-end solutions that help manage operations in the energy, water, and smart city space worldwide. The company operates through three segments: Device Solutions, Networked Solutions, and Outcomes. The Device Solutions segment offers hardware products that are used for measurement, control, or sensing. The Networked Solutions segment provides a combination of communicating devices, such as smart meters, modules, endpoints, and sensors; network infrastructure; and associated application software for acquiring and transporting application-specific data. The Outcomes segment offers value-added, enhanced software and services for managing, organizing, analyzing, and interpreting data to enhance decision making, maximize operational profitability, drive resource efficiency, and deliver results for consumers, utilities, and smart cities. In addition, it offers implementation, project management, installation, consulting, and post-sale maintenance support services, as well as cloud and software-as-a-service; and extended or customer-specific warranties.
ITRI (Itron, Inc.) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $3.65B, a trailing P/E of 12.73, a beta of 1.35 versus the broader market, a 52-week range of 78.53-142, average daily share volume of 1.1M, a public-listing history dating back to 1993, approximately 5K full-time employees. These structural characteristics shape how ITRI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.35 indicates ITRI 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 ITRI?
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 ITRI snapshot
As of May 15, 2026, spot at $79.26, ATM IV 41.80%, IV rank 30.12%, expected move 11.98%. The covered call on ITRI 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 63-day expiry.
Why this covered call structure on ITRI specifically: ITRI IV at 41.80% is mid-range versus its 1-year history, so the credit collected on a ITRI covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 11.98% (roughly $9.50 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ITRI expiries trade a higher absolute premium for lower per-day decay. Position sizing on ITRI should anchor to the underlying notional of $79.26 per share and to the trader's directional view on ITRI stock.
ITRI covered call setup
The ITRI 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 ITRI near $79.26, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ITRI chain at a 63-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 ITRI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $79.26 | long |
| Sell 1 | Call | $85.00 | $3.95 |
ITRI covered call risk and reward
- Net Premium / Debit
- -$7,531.00
- Max Profit (per contract)
- $969.00
- Max Loss (per contract)
- -$7,530.00
- Breakeven(s)
- $75.31
- Risk / Reward Ratio
- 0.129
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.
ITRI covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on ITRI. 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% | -$7,530.00 |
| $17.53 | -77.9% | -$5,777.63 |
| $35.06 | -55.8% | -$4,025.26 |
| $52.58 | -33.7% | -$2,272.88 |
| $70.10 | -11.6% | -$520.51 |
| $87.63 | +10.6% | +$969.00 |
| $105.15 | +32.7% | +$969.00 |
| $122.68 | +54.8% | +$969.00 |
| $140.20 | +76.9% | +$969.00 |
| $157.72 | +99.0% | +$969.00 |
When traders use covered call on ITRI
Covered calls on ITRI are an income strategy run on existing ITRI stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
ITRI thesis for this covered call
The market-implied 1-standard-deviation range for ITRI extends from approximately $69.76 on the downside to $88.76 on the upside. A ITRI covered call collects premium on an existing long ITRI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether ITRI will breach that level within the expiration window. Current ITRI IV rank near 30.12% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on ITRI should anchor more to the directional view and the expected-move geometry. As a Technology name, ITRI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ITRI-specific events.
ITRI 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. ITRI positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ITRI alongside the broader basket even when ITRI-specific fundamentals are unchanged. Short-premium structures like a covered call on ITRI carry tail risk when realized volatility exceeds the implied move; review historical ITRI earnings reactions and macro stress periods before sizing. Always rebuild the position from current ITRI chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on ITRI?
- A covered call on ITRI is the covered call strategy applied to ITRI (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 ITRI stock trading near $79.26, the strikes shown on this page are snapped to the nearest listed ITRI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ITRI 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 ITRI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 41.80%), the computed maximum profit is $969.00 per contract and the computed maximum loss is -$7,530.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ITRI covered call?
- The breakeven for the ITRI covered call priced on this page is roughly $75.31 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 ITRI market-implied 1-standard-deviation expected move is approximately 11.98%; 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 ITRI?
- Covered calls on ITRI are an income strategy run on existing ITRI 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 ITRI implied volatility affect this covered call?
- ITRI ATM IV is at 41.80% with IV rank near 30.12%, 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.