SSTI Covered Call Strategy
SSTI (SoundThinking, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
SoundThinking, Inc., a public safety technology company, provides data-driven solutions and strategic advisory services for law enforcement, security teams, and civic leadership. Its SafetySmart platform that includes data-driven tools comprising ShotSpotter, an outdoor gunshot detection, location, and alerting system; CrimeTracer, an agency-wide crime data and intelligence platform that enables investigators, analysts, patrol officers and command staff to search through criminal justice records from across jurisdictions, leverage dashboards, and AI-assisted tools to generate tactical leads and make intelligent connections to solve cases; CaseBuilder, a one-stop investigative case management system for tracking, reporting and collaborating on cases; ResourceRouter, a software that directs the deployment of patrol and community anti-violence resources; PlateRanger powered by Rekor, an automatic license plate recognition and vehicle identification solution; and SafePointe, an artificial intelligence-based weapons detection system. The company also offers ShotSpotter for Campus and ShotSpotter for Corporate, to universities, corporate campuses, and key infrastructure centers to mitigate risk and enhance security by notifying authorities of outdoor gunfire incidents and saving critical minutes for first responders to arrive. In addition, it provides perimeter-based sniper gunshot detection solutions. The company sells its solutions through its direct sales teams. The company was formerly known as ShotSpotter, Inc. and changed its name to SoundThinking, Inc. in April 2023.
SSTI (SoundThinking, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $106.1M, a beta of 1.18 versus the broader market, a 52-week range of 5.78-14.26, average daily share volume of 125K, a public-listing history dating back to 2017, approximately 303 full-time employees. These structural characteristics shape how SSTI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.18 places SSTI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a covered call on SSTI?
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 SSTI snapshot
As of June 30, 2026, spot at $9.09, ATM IV 68.20%, IV rank 22.81%, expected move 19.55%. The covered call on SSTI 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 17-day expiry.
Why this covered call structure on SSTI specifically: SSTI IV at 68.20% is on the cheap side of its 1-year range, which means a premium-selling SSTI covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 19.55% (roughly $1.78 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SSTI expiries trade a higher absolute premium for lower per-day decay. Position sizing on SSTI should anchor to the underlying notional of $9.09 per share and to the trader's directional view on SSTI stock.
SSTI covered call setup
The SSTI 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 SSTI near $9.09, the first option leg uses a $9.54 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SSTI chain at a 17-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 SSTI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $9.09 | long |
| Sell 1 | Call | $9.54 | N/A |
SSTI 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.
SSTI covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on SSTI. 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 SSTI
Covered calls on SSTI are an income strategy run on existing SSTI stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
SSTI thesis for this covered call
The market-implied 1-standard-deviation range for SSTI extends from approximately $7.31 on the downside to $10.87 on the upside. A SSTI covered call collects premium on an existing long SSTI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether SSTI will breach that level within the expiration window. Current SSTI IV rank near 22.81% 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 SSTI at 68.20%. As a Technology name, SSTI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SSTI-specific events.
SSTI 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. SSTI positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SSTI alongside the broader basket even when SSTI-specific fundamentals are unchanged. Short-premium structures like a covered call on SSTI carry tail risk when realized volatility exceeds the implied move; review historical SSTI earnings reactions and macro stress periods before sizing. Always rebuild the position from current SSTI chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on SSTI?
- A covered call on SSTI is the covered call strategy applied to SSTI (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 SSTI stock trading near $9.09, the strikes shown on this page are snapped to the nearest listed SSTI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SSTI 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 SSTI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 68.20%), 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 SSTI covered call?
- The breakeven for the SSTI 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 SSTI market-implied 1-standard-deviation expected move is approximately 19.55%; 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 SSTI?
- Covered calls on SSTI are an income strategy run on existing SSTI 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 SSTI implied volatility affect this covered call?
- SSTI ATM IV is at 68.20% with IV rank near 22.81%, 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.