LSCC Covered Call Strategy
LSCC (Lattice Semiconductor Corporation), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Headquartered in Hillsboro, Oregon, and established in 1983, Lattice Semiconductor Corporation, through its various entities, specializes in the global design and distribution of semiconductor solutions across Asia, Europe, and the Americas. The company's primary offerings include a diverse lineup of Field Programmable Gate Arrays (FPGAs), structured into distinct product families such as Certus-NX and ECP, Mach, iCE40, and CrossLink. Additionally, Lattice manufactures application-specific standard products (ASSPs) dedicated to video connectivity. Beyond physical products, the firm actively monetizes its technological advancements by licensing its intellectual property portfolio through standard IP and core licensing, patent monetization initiatives, and specialized IP services. Lattice distributes its products directly to end-users and indirectly via a robust network of independent manufacturers' representatives and distributors. Its primary clientele consists of original equipment manufacturers (OEMs) operating across critical sectors like communications and computing, consumer electronics, and the industrial and automotive industries.
LSCC (Lattice Semiconductor Corporation) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $17.87B, a trailing P/E of 491.79, a beta of 1.80 versus the broader market, a 52-week range of 59.37-157.01, average daily share volume of 2.1M, a public-listing history dating back to 1989, approximately 1K full-time employees. These structural characteristics shape how LSCC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.80 indicates LSCC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 491.79 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a covered call on LSCC?
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.
LSCC snapshot
As of August 14, 2026, spot at $129.99, ATM IV 63.40%, IV rank 23.56%, expected move 18.18%. The covered call on LSCC 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 35-day expiry.
Why this covered call structure on LSCC specifically: LSCC IV at 63.40% is on the cheap side of its 1-year range, which means a premium-selling LSCC covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 18.18% (roughly $23.63 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LSCC expiries trade a higher absolute premium for lower per-day decay. Position sizing on LSCC should anchor to the underlying notional of $129.99 per share and to the trader's directional view on LSCC stock.
LSCC covered call setup
The LSCC 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 LSCC at $129.99 on that close, the first option leg uses a $135.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LSCC chain at a 35-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 LSCC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $129.99 | long |
| Sell 1 | Call | $135.00 | $8.20 |
LSCC covered call risk and reward
- Net Premium / Debit
- -$12,179.00
- Max Profit (per contract)
- $1,321.00
- Max Loss (per contract)
- -$12,178.00
- Breakeven(s)
- $121.79
- Risk / Reward Ratio
- 0.108
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.
LSCC covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on LSCC. 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% | -$12,178.00 |
| $28.75 | -77.9% | -$9,303.96 |
| $57.49 | -55.8% | -$6,429.92 |
| $86.23 | -33.7% | -$3,555.88 |
| $114.97 | -11.6% | -$681.84 |
| $143.71 | +10.6% | +$1,321.00 |
| $172.45 | +32.7% | +$1,321.00 |
| $201.19 | +54.8% | +$1,321.00 |
| $229.93 | +76.9% | +$1,321.00 |
| $258.67 | +99.0% | +$1,321.00 |
When traders use covered call on LSCC
Covered calls on LSCC are an income strategy run on existing LSCC stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
LSCC thesis for this covered call
The market-implied 1-standard-deviation range for LSCC extends from approximately $106.36 on the downside to $153.62 on the upside. A LSCC covered call collects premium on an existing long LSCC position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether LSCC will breach that level within the expiration window. Current LSCC IV rank near 23.56% 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 LSCC at 63.40%. As a Technology name, LSCC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LSCC-specific events.
LSCC 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. LSCC positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LSCC alongside the broader basket even when LSCC-specific fundamentals are unchanged. Short-premium structures like a covered call on LSCC carry tail risk when realized volatility exceeds the implied move; review historical LSCC earnings reactions and macro stress periods before sizing. Always rebuild the position from current LSCC chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on LSCC?
- A covered call on LSCC is the covered call strategy applied to LSCC (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 LSCC stock at $129.99 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed LSCC chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are LSCC 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 LSCC covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 63.40%), the computed maximum profit is $1,321.00 per contract and the computed maximum loss is -$12,178.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LSCC covered call?
- The breakeven for the LSCC covered call priced on this page is roughly $121.79 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 LSCC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.18%; 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 LSCC?
- Covered calls on LSCC are an income strategy run on existing LSCC 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 LSCC implied volatility affect this covered call?
- LSCC ATM IV is at 63.40% with IV rank near 23.56%, 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.