How are OUST 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 OUST covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 137.20%), the computed maximum profit is $924.00 per contract and the computed maximum loss is -$4,575.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a OUST covered call?

The breakeven for the OUST covered call priced on this page is roughly $45.76 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 OUST market-implied 1-standard-deviation expected move is approximately 39.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current OUST implied volatility affect this covered call?

OUST ATM IV is at 137.20% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

OUST Covered Call Strategy

OUST (Ouster, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Ouster, Inc. engages in the production and sale of lidar sensor kits for the automotive, industrial, robotics, and smart infrastructure industries in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company offers the Outer Sensor (OS) product line, including OSDome that provides a hemispheric field of view; OS0 for wide view; OS1, for mid-range view; and OS2 for long-range view. It also provides the DF series, a suite of short, mid, and long-range solid-state digital lidar sensors for advanced driver assistance systems (ADAS) and autonomous driving systems; Velodyne that offers surround-view lidar sensors comprising VLP-16, VLP-16 Lite, VLP-16 Hi-Res, VLP-32, and VLS-128; Ouster Gemini, a perception platform designed for smart infrastructure deployments; and BlueCity, a Gemini-powered solution for traffic operations, planning, and safety. In addition, the company offers ZED, a high-performance camera that provides 2D and 3D color data, as well as AI Compute. Further, it is developing solid-state digital flash sensors, a suite of short, mid, and long-range solid-state digital lidar sensors that provide uniform precision imaging without motion blur across an entire field of view. Ouster, Inc. was founded in 2015 and is headquartered in San Francisco, California.

OUST (Ouster, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $2.68B, a beta of 3.24 versus the broader market, a 52-week range of 16.4-51.5, average daily share volume of 4.1M, a public-listing history dating back to 2020, approximately 320 full-time employees. These structural characteristics shape how OUST stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.24 indicates OUST 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 OUST?

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 OUST snapshot

As of June 29, 2026, spot at $54.41, ATM IV 137.20%, IV rank 100.00%, expected move 39.33%. The covered call on OUST 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 32-day expiry.

Why this covered call structure on OUST specifically: OUST IV at 137.20% is rich versus its 1-year range, which favors premium-selling structures like a OUST covered call, with a market-implied 1-standard-deviation move of approximately 39.33% (roughly $21.40 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OUST expiries trade a higher absolute premium for lower per-day decay. Position sizing on OUST should anchor to the underlying notional of $54.41 per share and to the trader's directional view on OUST stock.

OUST covered call setup

The OUST 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 OUST near $54.41, the first option leg uses a $55.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OUST chain at a 32-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 OUST shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$54.41	long
Sell 1	Call	$55.00	$8.65

OUST covered call risk and reward

Net Premium / Debit: -$4,576.00
Max Profit (per contract): $924.00
Max Loss (per contract): -$4,575.00
Breakeven(s): $45.76
Risk / Reward Ratio: 0.202

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.

OUST covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on OUST. 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%	-$4,575.00
$12.04	-77.9%	-$3,372.08
$24.07	-55.8%	-$2,169.15
$36.10	-33.7%	-$966.23
$48.13	-11.5%	+$236.70
$60.16	+10.6%	+$924.00
$72.19	+32.7%	+$924.00
$84.21	+54.8%	+$924.00
$96.24	+76.9%	+$924.00
$108.27	+99.0%	+$924.00

When traders use covered call on OUST

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

OUST thesis for this covered call

The market-implied 1-standard-deviation range for OUST extends from approximately $33.01 on the downside to $75.81 on the upside. A OUST covered call collects premium on an existing long OUST position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether OUST will breach that level within the expiration window. Current OUST IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on OUST at 137.20%. As a Technology name, OUST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OUST-specific events.

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

Frequently asked questions

What is a covered call on OUST?: A covered call on OUST is the covered call strategy applied to OUST (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 OUST stock trading near $54.41, the strikes shown on this page are snapped to the nearest listed OUST chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are OUST 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 OUST covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 137.20%), the computed maximum profit is $924.00 per contract and the computed maximum loss is -$4,575.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a OUST covered call?: The breakeven for the OUST covered call priced on this page is roughly $45.76 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 OUST market-implied 1-standard-deviation expected move is approximately 39.33%; 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 OUST?: Covered calls on OUST are an income strategy run on existing OUST 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 OUST implied volatility affect this covered call?: OUST ATM IV is at 137.20% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.