How are TSSI 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 TSSI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 99.60%), the computed maximum profit is $131.50 per contract and the computed maximum loss is -$1,067.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TSSI covered call?

The breakeven for the TSSI covered call priced on this page is roughly $10.69 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 TSSI market-implied 1-standard-deviation expected move is approximately 28.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TSSI implied volatility affect this covered call?

TSSI ATM IV is at 99.60% with IV rank near 18.53%, 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.

TSSI Covered Call Strategy

TSSI (TSS, Inc.), in the Technology sector, (Information Technology Services industry), listed on NASDAQ.

TSS, Inc. provides services for the planning, design, deployment, maintenance, and refurbishment of end-user and enterprise systems, including the mission-critical facilities in the United States. The company operates through two segments, Facilities and Systems Integration. It offers a single source solution for enabling technologies in data centers, operations centers, network facilities, server rooms, security operations centers, communications facilities, and the infrastructure systems. The company also provides technology consulting, design and engineering, project management, systems integration, systems installation, facilities management, and IT procurement and reseller services. It serves IT OEM equipment, technology, and service companies; private sector businesses; and government or commercial end users. The company was formerly known as Fortress International Group, Inc. and changed its name to TSS, Inc. in June 2013.

TSSI (TSS, Inc.) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $325.1M, a trailing P/E of 18.79, a beta of 2.04 versus the broader market, a 52-week range of 6.87-31.94, average daily share volume of 2.0M, a public-listing history dating back to 2005, approximately 161 full-time employees. These structural characteristics shape how TSSI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.04 indicates TSSI 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 TSSI?

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 TSSI snapshot

As of May 15, 2026, spot at $11.21, ATM IV 99.60%, IV rank 18.53%, expected move 28.55%. The covered call on TSSI 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 14-day expiry.

Why this covered call structure on TSSI specifically: TSSI IV at 99.60% is on the cheap side of its 1-year range, which means a premium-selling TSSI covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 28.55% (roughly $3.20 on the underlying). The 14-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TSSI expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSSI should anchor to the underlying notional of $11.21 per share and to the trader's directional view on TSSI stock.

TSSI covered call setup

The TSSI 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 TSSI near $11.21, the first option leg uses a $12.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TSSI chain at a 14-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 TSSI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$11.21	long
Sell 1	Call	$12.00	$0.53

TSSI covered call risk and reward

Net Premium / Debit: -$1,068.50
Max Profit (per contract): $131.50
Max Loss (per contract): -$1,067.50
Breakeven(s): $10.69
Risk / Reward Ratio: 0.123

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.

TSSI covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on TSSI. 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%	-$1,067.50
$2.49	-77.8%	-$819.75
$4.96	-55.7%	-$572.00
$7.44	-33.6%	-$324.25
$9.92	-11.5%	-$76.51
$12.40	+10.6%	+$131.50
$14.87	+32.7%	+$131.50
$17.35	+54.8%	+$131.50
$19.83	+76.9%	+$131.50
$22.31	+99.0%	+$131.50

When traders use covered call on TSSI

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

TSSI thesis for this covered call

The market-implied 1-standard-deviation range for TSSI extends from approximately $8.01 on the downside to $14.41 on the upside. A TSSI covered call collects premium on an existing long TSSI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether TSSI will breach that level within the expiration window. Current TSSI IV rank near 18.53% 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 TSSI at 99.60%. As a Technology name, TSSI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TSSI-specific events.

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

Frequently asked questions

What is a covered call on TSSI?: A covered call on TSSI is the covered call strategy applied to TSSI (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 TSSI stock trading near $11.21, the strikes shown on this page are snapped to the nearest listed TSSI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TSSI 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 TSSI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 99.60%), the computed maximum profit is $131.50 per contract and the computed maximum loss is -$1,067.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TSSI covered call?: The breakeven for the TSSI covered call priced on this page is roughly $10.69 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 TSSI market-implied 1-standard-deviation expected move is approximately 28.55%; 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 TSSI?: Covered calls on TSSI are an income strategy run on existing TSSI 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 TSSI implied volatility affect this covered call?: TSSI ATM IV is at 99.60% with IV rank near 18.53%, 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.