SMRT Covered Call Strategy

SMRT (SmartRent, Inc.), in the Technology sector, (Software - Application industry), listed on NYSE.

SmartRent, Inc., an enterprise software company, provides an integrated smart home operating system to residential property owners and operators, homebuilders, institutional home buyers, developers, and residents in the United States. Its solution is designed to provide communities with visibility and control their assets while delivering cost savings and additional revenue opportunities through all-in-one home control offerings for residents. The company's products and solutions include smart apartments and homes, access control for buildings, common areas, rental units, asset protection and monitoring, parking management, self-guided tours, and community and resident Wi-Fi. It also offers professional services to customers, which include training, installation, and support services. SmartRent, Inc. was founded in 2017 and is headquartered in Scottsdale, Arizona.

SMRT (SmartRent, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $214.1M, a beta of 1.57 versus the broader market, a 52-week range of 0.745-2.2, average daily share volume of 926K, a public-listing history dating back to 2021, approximately 494 full-time employees. These structural characteristics shape how SMRT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.57 indicates SMRT 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 SMRT?

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 SMRT snapshot

As of May 15, 2026, spot at $1.13, ATM IV 135.20%, IV rank 35.66%, expected move 38.76%. The covered call on SMRT 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 34-day expiry.

Why this covered call structure on SMRT specifically: SMRT IV at 135.20% is mid-range versus its 1-year history, so the credit collected on a SMRT covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 38.76% (roughly $0.44 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SMRT expiries trade a higher absolute premium for lower per-day decay. Position sizing on SMRT should anchor to the underlying notional of $1.13 per share and to the trader's directional view on SMRT stock.

SMRT covered call setup

The SMRT 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 SMRT near $1.13, the first option leg uses a $1.19 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SMRT chain at a 34-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 SMRT shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Buy 100 sharesStock$1.13long
Sell 1Call$1.19N/A

SMRT 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.

SMRT covered call payoff curve

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

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

SMRT thesis for this covered call

The market-implied 1-standard-deviation range for SMRT extends from approximately $0.69 on the downside to $1.57 on the upside. A SMRT covered call collects premium on an existing long SMRT position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether SMRT will breach that level within the expiration window. Current SMRT IV rank near 35.66% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on SMRT should anchor more to the directional view and the expected-move geometry. As a Technology name, SMRT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SMRT-specific events.

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

Frequently asked questions

What is a covered call on SMRT?
A covered call on SMRT is the covered call strategy applied to SMRT (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 SMRT stock trading near $1.13, the strikes shown on this page are snapped to the nearest listed SMRT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SMRT 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 SMRT covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 135.20%), 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 SMRT covered call?
The breakeven for the SMRT covered call priced on this page is no defined breakeven on the modeled curve 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 SMRT market-implied 1-standard-deviation expected move is approximately 38.76%; 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 SMRT?
Covered calls on SMRT are an income strategy run on existing SMRT 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 SMRT implied volatility affect this covered call?
SMRT ATM IV is at 135.20% with IV rank near 35.66%, 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.

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