How are MXL 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 MXL covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 127.30%), the computed maximum profit is $1,599.00 per contract and the computed maximum loss is -$11,400.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MXL covered call?

The breakeven for the MXL covered call priced on this page is roughly $114.01 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 MXL market-implied 1-standard-deviation expected move is approximately 36.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MXL implied volatility affect this covered call?

MXL ATM IV is at 127.30% with IV rank near 60.63%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

MXL Covered Call Strategy

MXL (MaxLinear, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

MaxLinear, Inc. provides communications systems-on-chip solutions in the United States, Asia, Europe, and internationally. Its products integrate various portions of a high-speed communication system, including radio frequency, high-performance analog, mixed-signal, digital signal processing, security engines, data compression and networking layers, and power management. Its products are used in various electronic devices, such as radio transceivers and modems for 4G/5G base-station and backhaul infrastructure; optical transceivers; wi-fi and wireline routers for home networking; broadband modems compliant with data over cable service interface specifications, passive optical fiber standards, and digital subscriber line, as well as power management and interface products. It serves electronics distributors, module makers, original equipment manufacturers, and original design manufacturers through a direct sales force, third-party sales representatives, and a network of distributors. The company was incorporated in 2003 and is headquartered in Carlsbad, California.

MXL (MaxLinear, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $8.65B, a beta of 4.00 versus the broader market, a 52-week range of 12.77-106.28, average daily share volume of 4.9M, a public-listing history dating back to 2010, approximately 1K full-time employees. These structural characteristics shape how MXL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 4.00 indicates MXL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a covered call on MXL?

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 MXL snapshot

As of June 30, 2026, spot at $126.16, ATM IV 127.30%, IV rank 60.63%, expected move 36.50%. The covered call on MXL 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 17-day expiry.

Why this covered call structure on MXL specifically: MXL IV at 127.30% is mid-range versus its 1-year history, so the credit collected on a MXL covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 36.50% (roughly $46.04 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MXL expiries trade a higher absolute premium for lower per-day decay. Position sizing on MXL should anchor to the underlying notional of $126.16 per share and to the trader's directional view on MXL stock.

MXL covered call setup

The MXL 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 MXL near $126.16, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MXL chain at a 17-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 MXL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$126.16	long
Sell 1	Call	$130.00	$12.15

MXL covered call risk and reward

Net Premium / Debit: -$11,401.00
Max Profit (per contract): $1,599.00
Max Loss (per contract): -$11,400.00
Breakeven(s): $114.01
Risk / Reward Ratio: 0.140

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.

MXL covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on MXL. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$11,400.00
$27.90	-77.9%	-$8,610.64
$55.80	-55.8%	-$5,821.29
$83.69	-33.7%	-$3,031.93
$111.58	-11.6%	-$242.57
$139.48	+10.6%	+$1,599.00
$167.37	+32.7%	+$1,599.00
$195.26	+54.8%	+$1,599.00
$223.16	+76.9%	+$1,599.00
$251.05	+99.0%	+$1,599.00

When traders use covered call on MXL

Covered calls on MXL are an income strategy run on existing MXL stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.

MXL thesis for this covered call

The market-implied 1-standard-deviation range for MXL extends from approximately $80.12 on the downside to $172.20 on the upside. A MXL covered call collects premium on an existing long MXL position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether MXL will breach that level within the expiration window. Current MXL IV rank near 60.63% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on MXL should anchor more to the directional view and the expected-move geometry. As a Technology name, MXL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MXL-specific events.

MXL 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. MXL positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MXL alongside the broader basket even when MXL-specific fundamentals are unchanged. Short-premium structures like a covered call on MXL carry tail risk when realized volatility exceeds the implied move; review historical MXL earnings reactions and macro stress periods before sizing. Always rebuild the position from current MXL chain quotes before placing a trade.

Frequently asked questions

What is a covered call on MXL?: A covered call on MXL is the covered call strategy applied to MXL (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 MXL stock trading near $126.16, the strikes shown on this page are snapped to the nearest listed MXL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MXL 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 MXL covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 127.30%), the computed maximum profit is $1,599.00 per contract and the computed maximum loss is -$11,400.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MXL covered call?: The breakeven for the MXL covered call priced on this page is roughly $114.01 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 MXL market-implied 1-standard-deviation expected move is approximately 36.50%; 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 MXL?: Covered calls on MXL are an income strategy run on existing MXL 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 MXL implied volatility affect this covered call?: MXL ATM IV is at 127.30% with IV rank near 60.63%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.