SATL Covered Call Strategy
SATL (Satellogic Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NASDAQ.
Satellogic Inc. specializes in the development and deployment of compact, high-resolution Earth observation satellites, delivering live, commercial-grade geospatial data. These continuous data feeds provide critical insights that empower a diverse range of stakeholders, including governmental bodies, private enterprises, organizations, and even individuals, to make informed strategic and operational decisions. The company's orbital platforms facilitate a multitude of vital applications, such as agricultural management, diligent pipeline and critical infrastructure surveillance, rapid disaster response coordination, efforts to combat illegal logging, enhanced border security, and comprehensive port safety monitoring, among numerous other uses. Established in 2010, Satellogic is headquartered in Palo Alto, California.
SATL (Satellogic Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $823.2M, a beta of 1.31 versus the broader market, a 52-week range of 1.255-12, average daily share volume of 9.1M, a public-listing history dating back to 2021, approximately 154 full-time employees. These structural characteristics shape how SATL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.31 indicates SATL 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 SATL?
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.
SATL snapshot
As of August 14, 2026, spot at $5.76, ATM IV 100.00%, IV rank 23.11%, expected move 28.67%. The covered call on SATL below is built from the 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 SATL specifically: SATL IV at 100.00% is on the cheap side of its 1-year range, which means a premium-selling SATL covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 28.67% (roughly $1.65 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 SATL expiries trade a higher absolute premium for lower per-day decay. Position sizing on SATL should anchor to the underlying notional of $5.76 per share and to the trader's directional view on SATL stock.
SATL covered call setup
The SATL 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 SATL at $5.76 on that close, the first option leg uses a $6.05 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SATL 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 SATL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $5.76 | long |
| Sell 1 | Call | $6.05 | N/A |
SATL covered call risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
SATL covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on SATL. 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.
When traders use covered call on SATL
Covered calls on SATL are an income strategy run on existing SATL stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
SATL thesis for this covered call
The market-implied 1-standard-deviation range for SATL extends from approximately $4.11 on the downside to $7.41 on the upside. A SATL covered call collects premium on an existing long SATL position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether SATL will breach that level within the expiration window. Current SATL IV rank near 23.11% 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 SATL at 100.00%. As a Industrials name, SATL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SATL-specific events.
SATL 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. SATL positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SATL alongside the broader basket even when SATL-specific fundamentals are unchanged. Short-premium structures like a covered call on SATL carry tail risk when realized volatility exceeds the implied move; review historical SATL earnings reactions and macro stress periods before sizing. Always rebuild the position from current SATL chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on SATL?
- A covered call on SATL is the covered call strategy applied to SATL (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 SATL stock at $5.76 on the most recent close, the strikes shown on this page are snapped to the nearest listed SATL chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are SATL 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 SATL covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 100.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SATL covered call?
- The breakeven for the SATL covered call priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 SATL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 28.67%; 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 SATL?
- Covered calls on SATL are an income strategy run on existing SATL 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 SATL implied volatility affect this covered call?
- SATL ATM IV is at 100.00% with IV rank near 23.11%, 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.