How are NVTS 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 NVTS covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 92.53%), the computed maximum profit is $181.00 per contract and the computed maximum loss is -$1,318.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NVTS covered call?

The breakeven for the NVTS covered call priced on this page is roughly $13.19 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 NVTS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NVTS implied volatility affect this covered call?

NVTS ATM IV is at 92.53% with IV rank near 17.46%, 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.

NVTS Covered Call Strategy

NVTS (Navitas Semiconductor Corp), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Navitas Semiconductor Corporation designs, develops, and markets power semiconductors in the United States, Europe, China, rest of Asia, and internationally. The company offers gallium nitride power integrated circuits, silicon carbide power devices, silicon system controllers, and digital isolators for power conversion and charging. Its products are used in automotive, data center, mobile, consumer electronics markets, and various other applications. The company was founded in 2014 and is based in Torrance, California.

NVTS (Navitas Semiconductor Corp) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $3.77B, a beta of 3.88 versus the broader market, a 52-week range of 5.44-34.17, average daily share volume of 27.9M, a public-listing history dating back to 2021, approximately 190 full-time employees. These structural characteristics shape how NVTS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.88 indicates NVTS 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 NVTS?

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.

NVTS snapshot

As of August 14, 2026, spot at $14.43, ATM IV 92.53%, IV rank 17.46%, expected move 26.53%. The covered call on NVTS 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 28-day expiry.

Why this covered call structure on NVTS specifically: NVTS IV at 92.53% is on the cheap side of its 1-year range, which means a premium-selling NVTS covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 26.53% (roughly $3.83 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NVTS expiries trade a higher absolute premium for lower per-day decay. Position sizing on NVTS should anchor to the underlying notional of $14.43 per share and to the trader's directional view on NVTS stock.

NVTS covered call setup

The NVTS 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 NVTS at $14.43 on that close, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NVTS chain at a 28-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 NVTS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$14.43	long
Sell 1	Call	$15.00	$1.24

NVTS covered call risk and reward

Net Premium / Debit: -$1,319.00
Max Profit (per contract): $181.00
Max Loss (per contract): -$1,318.00
Breakeven(s): $13.19
Risk / Reward Ratio: 0.137

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.

NVTS covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on NVTS. 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	-99.9%	-$1,318.00
$3.20	-77.8%	-$999.06
$6.39	-55.7%	-$680.11
$9.58	-33.6%	-$361.17
$12.77	-11.5%	-$42.22
$15.96	+10.6%	+$181.00
$19.15	+32.7%	+$181.00
$22.34	+54.8%	+$181.00
$25.53	+76.9%	+$181.00
$28.72	+99.0%	+$181.00

When traders use covered call on NVTS

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

NVTS thesis for this covered call

The market-implied 1-standard-deviation range for NVTS extends from approximately $10.60 on the downside to $18.26 on the upside. A NVTS covered call collects premium on an existing long NVTS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether NVTS will breach that level within the expiration window. Current NVTS IV rank near 17.46% 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 NVTS at 92.53%. As a Technology name, NVTS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NVTS-specific events.

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

Frequently asked questions

What is a covered call on NVTS?: A covered call on NVTS is the covered call strategy applied to NVTS (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 NVTS stock at $14.43 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed NVTS chain strike and the premiums come straight from that session's bid/ask midpoint.
How are NVTS 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 NVTS covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 92.53%), the computed maximum profit is $181.00 per contract and the computed maximum loss is -$1,318.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NVTS covered call?: The breakeven for the NVTS covered call priced on this page is roughly $13.19 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 NVTS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.53%; 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 NVTS?: Covered calls on NVTS are an income strategy run on existing NVTS 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 NVTS implied volatility affect this covered call?: NVTS ATM IV is at 92.53% with IV rank near 17.46%, 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.