ONDS Covered Call Strategy
ONDS (Ondas Holdings Inc.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.
Ondas Holdings Inc., through its subsidiaries, provides private wireless, drone, and automated data solutions. The company operates in two segments, Ondas Networks and American Robotics. The company designs, develops, manufactures, sells, and supports FullMAX, a software defined radio (SDR) platform for wide-area broadband networks. Its FullMAX SDR platform enables secure and reliable industrial-grade connectivity for truly mission-critical applications. The company also offers Scout Drone, an AI-powered drone with imaging payloads; the ScoutBase, a ruggedized base station for housing, charging, data processing, and cloud transfer; and ScoutView, an American robotics analytics and user interface software package. It serves users in rail, energy, mining, agriculture, and critical infrastructure markets in the United States and internationally.
ONDS (Ondas Holdings Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $4.30B, a beta of 2.56 versus the broader market, a 52-week range of 0.76-15.28, average daily share volume of 72.6M, a public-listing history dating back to 2020, approximately 113 full-time employees. These structural characteristics shape how ONDS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.56 indicates ONDS 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 ONDS?
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 ONDS snapshot
As of May 15, 2026, spot at $10.54, ATM IV 94.18%, IV rank 2.57%, expected move 27.00%. The covered call on ONDS 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 28-day expiry.
Why this covered call structure on ONDS specifically: ONDS IV at 94.18% is on the cheap side of its 1-year range, which means a premium-selling ONDS covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 27.00% (roughly $2.85 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 ONDS expiries trade a higher absolute premium for lower per-day decay. Position sizing on ONDS should anchor to the underlying notional of $10.54 per share and to the trader's directional view on ONDS stock.
ONDS covered call setup
The ONDS 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 ONDS near $10.54, the first option leg uses a $11.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ONDS 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 ONDS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $10.54 | long |
| Sell 1 | Call | $11.00 | $0.93 |
ONDS covered call risk and reward
- Net Premium / Debit
- -$961.00
- Max Profit (per contract)
- $139.00
- Max Loss (per contract)
- -$960.00
- Breakeven(s)
- $9.61
- Risk / Reward Ratio
- 0.145
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.
ONDS covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on ONDS. 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 | -99.9% | -$960.00 |
| $2.34 | -77.8% | -$727.07 |
| $4.67 | -55.7% | -$494.13 |
| $7.00 | -33.6% | -$261.20 |
| $9.33 | -11.5% | -$28.26 |
| $11.66 | +10.6% | +$139.00 |
| $13.99 | +32.7% | +$139.00 |
| $16.32 | +54.8% | +$139.00 |
| $18.64 | +76.9% | +$139.00 |
| $20.97 | +99.0% | +$139.00 |
When traders use covered call on ONDS
Covered calls on ONDS are an income strategy run on existing ONDS stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
ONDS thesis for this covered call
The market-implied 1-standard-deviation range for ONDS extends from approximately $7.69 on the downside to $13.39 on the upside. A ONDS covered call collects premium on an existing long ONDS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether ONDS will breach that level within the expiration window. Current ONDS IV rank near 2.57% 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 ONDS at 94.18%. As a Technology name, ONDS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ONDS-specific events.
ONDS 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. ONDS positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ONDS alongside the broader basket even when ONDS-specific fundamentals are unchanged. Short-premium structures like a covered call on ONDS carry tail risk when realized volatility exceeds the implied move; review historical ONDS earnings reactions and macro stress periods before sizing. Always rebuild the position from current ONDS chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on ONDS?
- A covered call on ONDS is the covered call strategy applied to ONDS (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 ONDS stock trading near $10.54, the strikes shown on this page are snapped to the nearest listed ONDS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ONDS 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 ONDS covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 94.18%), the computed maximum profit is $139.00 per contract and the computed maximum loss is -$960.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ONDS covered call?
- The breakeven for the ONDS covered call priced on this page is roughly $9.61 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 ONDS market-implied 1-standard-deviation expected move is approximately 27.00%; 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 ONDS?
- Covered calls on ONDS are an income strategy run on existing ONDS 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 ONDS implied volatility affect this covered call?
- ONDS ATM IV is at 94.18% with IV rank near 2.57%, 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.