MNDY Covered Call Strategy
MNDY (monday.com Ltd.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
monday.com Ltd., along with its affiliated entities, designs and provides software solutions for a global market, spanning the United States, Europe, the Middle East, Africa, and other international regions. Its flagship offering is Work OS, an intuitive cloud-native visual work operating system constructed from configurable modules. This platform empowers users to assemble bespoke software applications and effective work management tools. The company further supplies dedicated product solutions catering to various functions, including marketing, customer relationship management (CRM), project coordination, and software engineering. Additionally, monday.com delivers comprehensive business development, presales, and customer support services. Its client base is broad, encompassing diverse organizations, educational and governmental institutions, and specific business divisions within larger enterprises.
MNDY (monday.com Ltd.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $3.63B, a trailing P/E of 34.58, a beta of 1.23 versus the broader market, a 52-week range of 57.5-220.8, average daily share volume of 1.7M, 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 1.23 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.
MNDY snapshot
As of August 14, 2026, spot at $88.19, ATM IV 62.40%, IV rank 14.59%, expected move 17.89%. The covered call on MNDY 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 MNDY specifically: MNDY IV at 62.40% 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 17.89% (roughly $15.78 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 MNDY expiries trade a higher absolute premium for lower per-day decay. Position sizing on MNDY should anchor to the underlying notional of $88.19 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 August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With MNDY at $88.19 on that close, the first option leg uses a $95.00 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 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 MNDY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $88.19 | long |
| Sell 1 | Call | $95.00 | $4.25 |
MNDY covered call risk and reward
- Net Premium / Debit
- -$8,394.00
- Max Profit (per contract)
- $1,106.00
- Max Loss (per contract)
- -$8,393.00
- Breakeven(s)
- $83.94
- Risk / Reward Ratio
- 0.132
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% | -$8,393.00 |
| $19.51 | -77.9% | -$6,443.18 |
| $39.01 | -55.8% | -$4,493.36 |
| $58.50 | -33.7% | -$2,543.54 |
| $78.00 | -11.6% | -$593.72 |
| $97.50 | +10.6% | +$1,106.00 |
| $117.00 | +32.7% | +$1,106.00 |
| $136.50 | +54.8% | +$1,106.00 |
| $156.00 | +76.9% | +$1,106.00 |
| $175.49 | +99.0% | +$1,106.00 |
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 $72.41 on the downside to $103.97 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 14.59% 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 62.40%. 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 at $88.19 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed MNDY chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 62.40%), the computed maximum profit is $1,106.00 per contract and the computed maximum loss is -$8,393.00 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 $83.94 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 MNDY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.89%; 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 62.40% with IV rank near 14.59%, 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.