LSCC Covered Call Strategy
LSCC (Lattice Semiconductor Corporation), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Lattice Semiconductor Corporation, together with its subsidiaries, develops and sells semiconductor products in Asia, Europe, and the Americas. The company offers field programmable gate arrays that consist of four product families, including the Certus-NX and ECP, Mach, iCE40, and CrossLink. It also provides video connectivity application specific standard products. In addition, the company licenses its technology portfolio through standard IP and IP core licensing, patent monetization, and IP services. It sells its products directly to end customers, and indirectly through a network of independent manufacturers' representatives and independent distributors. The company primarily serves original equipment manufacturers in the communications and computing, consumer, and industrial and automotive end markets.
LSCC (Lattice Semiconductor Corporation) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $17.22B, a trailing P/E of 864.77, a beta of 1.75 versus the broader market, a 52-week range of 43.9-130, average daily share volume of 2.0M, 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 1.75 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 864.77 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.
Current LSCC snapshot
As of May 15, 2026, spot at $120.00, ATM IV 64.30%, IV rank 27.82%, expected move 18.43%. The covered call on LSCC 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 34-day expiry.
Why this covered call structure on LSCC specifically: LSCC IV at 64.30% 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 18.43% (roughly $22.12 on the underlying). The 34-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 $120.00 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 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With LSCC near $120.00, the first option leg uses a $125.00 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 34-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 | $120.00 | long |
| Sell 1 | Call | $125.00 | $7.55 |
LSCC covered call risk and reward
- Net Premium / Debit
- -$11,245.00
- Max Profit (per contract)
- $1,255.00
- Max Loss (per contract)
- -$11,244.00
- Breakeven(s)
- $112.45
- Risk / Reward Ratio
- 0.112
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% | -$11,244.00 |
| $26.54 | -77.9% | -$8,590.84 |
| $53.07 | -55.8% | -$5,937.69 |
| $79.60 | -33.7% | -$3,284.53 |
| $106.14 | -11.6% | -$631.38 |
| $132.67 | +10.6% | +$1,255.00 |
| $159.20 | +32.7% | +$1,255.00 |
| $185.73 | +54.8% | +$1,255.00 |
| $212.26 | +76.9% | +$1,255.00 |
| $238.79 | +99.0% | +$1,255.00 |
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 $97.88 on the downside to $142.12 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 27.82% 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 64.30%. 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 trading near $120.00, the strikes shown on this page are snapped to the nearest listed LSCC chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 64.30%), the computed maximum profit is $1,255.00 per contract and the computed maximum loss is -$11,244.00 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 $112.45 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 LSCC market-implied 1-standard-deviation expected move is approximately 18.43%; 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 64.30% with IV rank near 27.82%, 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.