MNDY Covered Call Strategy
MNDY (monday.com Ltd.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
monday.com Ltd., together with its subsidiaries, develops software applications in the United States, Europe, the Middle East, Africa, and internationally. It provides Work OS, a cloud-based visual work operating system that consists of modular building blocks used and assembled to create software applications and work management tools. The company also offers product solutions for marketing, CRM, project management, software development, and other fields; and business development, presale, and customer success services. It serves organizations, educational or government institution, and distinct business unit of an organization. The company was formerly known as DaPulse Labs Ltd. and changed its name to monday.com Ltd. in November 2017. monday.com Ltd. was incorporated in 2012 and is headquartered in Tel Aviv-Yafo, Israel.
MNDY (monday.com Ltd.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $3.49B, a trailing P/E of 27.24, a beta of 1.16 versus the broader market, a 52-week range of 57.5-316.98, average daily share volume of 1.9M, a public-listing history dating back to 2021, approximately 3K full-time employees. These structural characteristics shape how MNDY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.16 places MNDY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a covered call on MNDY?
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 MNDY snapshot
As of May 15, 2026, spot at $71.52, ATM IV 67.90%, IV rank 22.10%, expected move 19.47%. The covered call on MNDY 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 98-day expiry.
Why this covered call structure on MNDY specifically: MNDY IV at 67.90% is on the cheap side of its 1-year range, which means a premium-selling MNDY covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 19.47% (roughly $13.92 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MNDY expiries trade a higher absolute premium for lower per-day decay. Position sizing on MNDY should anchor to the underlying notional of $71.52 per share and to the trader's directional view on MNDY stock.
MNDY covered call setup
The MNDY 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 MNDY near $71.52, the first option leg uses a $75.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MNDY chain at a 98-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 MNDY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $71.52 | long |
| Sell 1 | Call | $75.00 | $10.15 |
MNDY covered call risk and reward
- Net Premium / Debit
- -$6,137.00
- Max Profit (per contract)
- $1,363.00
- Max Loss (per contract)
- -$6,136.00
- Breakeven(s)
- $61.37
- Risk / Reward Ratio
- 0.222
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.
MNDY covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on MNDY. 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% | -$6,136.00 |
| $15.82 | -77.9% | -$4,554.76 |
| $31.63 | -55.8% | -$2,973.53 |
| $47.45 | -33.7% | -$1,392.29 |
| $63.26 | -11.5% | +$188.94 |
| $79.07 | +10.6% | +$1,363.00 |
| $94.88 | +32.7% | +$1,363.00 |
| $110.70 | +54.8% | +$1,363.00 |
| $126.51 | +76.9% | +$1,363.00 |
| $142.32 | +99.0% | +$1,363.00 |
When traders use covered call on MNDY
Covered calls on MNDY are an income strategy run on existing MNDY stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
MNDY thesis for this covered call
The market-implied 1-standard-deviation range for MNDY extends from approximately $57.60 on the downside to $85.44 on the upside. A MNDY covered call collects premium on an existing long MNDY position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether MNDY will breach that level within the expiration window. Current MNDY IV rank near 22.10% 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 MNDY at 67.90%. As a Technology name, MNDY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MNDY-specific events.
MNDY 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. MNDY positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MNDY alongside the broader basket even when MNDY-specific fundamentals are unchanged. Short-premium structures like a covered call on MNDY carry tail risk when realized volatility exceeds the implied move; review historical MNDY earnings reactions and macro stress periods before sizing. Always rebuild the position from current MNDY chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on MNDY?
- A covered call on MNDY is the covered call strategy applied to MNDY (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 MNDY stock trading near $71.52, the strikes shown on this page are snapped to the nearest listed MNDY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MNDY 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 MNDY covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 67.90%), the computed maximum profit is $1,363.00 per contract and the computed maximum loss is -$6,136.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MNDY covered call?
- The breakeven for the MNDY covered call priced on this page is roughly $61.37 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 MNDY market-implied 1-standard-deviation expected move is approximately 19.47%; 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 MNDY?
- Covered calls on MNDY are an income strategy run on existing MNDY 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 MNDY implied volatility affect this covered call?
- MNDY ATM IV is at 67.90% with IV rank near 22.10%, 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.