KVHI Covered Call Strategy
KVHI (KVH Industries, Inc.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.
KVH Industries, Inc. designs, develops, manufactures, and markets mobile connectivity products and services for the marine and land mobile markets in the United States and internationally. The company operates through Mobile Connectivity and Inertial Navigation segments. The company offers mobile satellite TV and communications products; two-way satellite communications systems; onboard TracPhone terminals and hub equipment; data management software; and Iridium OpenPort hardware products and services. It also offers airtime plans that enable customers to obtain Internet and voice services; and value-added, and news and radio content services to retail customers. In addition, the company provides navigation, guidance, and stabilization products for the commercial and defense markets comprising precision fiber optic gyro-based systems; tactical navigation systems for tactical trucks and light armored vehicles; and commercial products, such as navigation and positioning systems for various applications consisting of precision mapping, dynamic surveying, autonomous vehicles, train location control and track geometry measurement systems, industrial robotics, and optical stabilization applications. Further, it offers content, maritime news, sporting content, and television programming delivery services; movie distribution services; and services and support for the mini-VSAT Broadband solution, as well as IoT connectivity as a service.
KVHI (KVH Industries, Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $213.9M, a beta of 0.43 versus the broader market, a 52-week range of 5.04-11.35, average daily share volume of 122K, a public-listing history dating back to 1996, approximately 247 full-time employees. These structural characteristics shape how KVHI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.43 indicates KVHI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a covered call on KVHI?
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 KVHI snapshot
As of May 13, 2026, spot at $10.93, ATM IV 99.80%, IV rank 13.54%, expected move 28.61%. The covered call on KVHI 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 36-day expiry.
Why this covered call structure on KVHI specifically: KVHI IV at 99.80% is on the cheap side of its 1-year range, which means a premium-selling KVHI covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 28.61% (roughly $3.13 on the underlying). The 36-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KVHI expiries trade a higher absolute premium for lower per-day decay. Position sizing on KVHI should anchor to the underlying notional of $10.93 per share and to the trader's directional view on KVHI stock.
KVHI covered call setup
The KVHI 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 KVHI near $10.93, the first option leg uses a $11.48 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KVHI chain at a 36-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 KVHI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $10.93 | long |
| Sell 1 | Call | $11.48 | N/A |
KVHI 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.
KVHI covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on KVHI. 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 KVHI
Covered calls on KVHI are an income strategy run on existing KVHI stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
KVHI thesis for this covered call
The market-implied 1-standard-deviation range for KVHI extends from approximately $7.80 on the downside to $14.06 on the upside. A KVHI covered call collects premium on an existing long KVHI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether KVHI will breach that level within the expiration window. Current KVHI IV rank near 13.54% 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 KVHI at 99.80%. As a Technology name, KVHI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KVHI-specific events.
KVHI 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. KVHI positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KVHI alongside the broader basket even when KVHI-specific fundamentals are unchanged. Short-premium structures like a covered call on KVHI carry tail risk when realized volatility exceeds the implied move; review historical KVHI earnings reactions and macro stress periods before sizing. Always rebuild the position from current KVHI chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on KVHI?
- A covered call on KVHI is the covered call strategy applied to KVHI (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 KVHI stock trading near $10.93, the strikes shown on this page are snapped to the nearest listed KVHI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KVHI 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 KVHI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 99.80%), 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 KVHI covered call?
- The breakeven for the KVHI covered call priced on this page is no defined breakeven on the modeled curve 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 KVHI market-implied 1-standard-deviation expected move is approximately 28.61%; 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 KVHI?
- Covered calls on KVHI are an income strategy run on existing KVHI 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 KVHI implied volatility affect this covered call?
- KVHI ATM IV is at 99.80% with IV rank near 13.54%, 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.