TSSI Covered Call Strategy
TSSI (TSS, Inc.), in the Technology sector, (Information Technology Services industry), listed on NASDAQ.
TSS, Inc., headquartered in Round Rock, Texas, and founded in 2004 (originally as Fortress International Group, Inc. until its name change in June 2013), delivers comprehensive lifecycle services for crucial end-user and enterprise systems across the United States. Organized into Facilities and Systems Integration divisions, the company provides a unified resource for essential technologies in environments such as data centers, operational hubs, network facilities, server rooms, security operations centers, communication infrastructures, and broader infrastructure systems. Their extensive offerings include technology consulting, engineering and design, project oversight, system integration and installation, facility management, and IT procurement and resale services. TSS serves a diverse client base, including IT original equipment manufacturers, technology and service providers, private sector enterprises, and both governmental and commercial end-users.
TSSI (TSS, Inc.) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $317.8M, a trailing P/E of 18.36, a beta of 2.00 versus the broader market, a 52-week range of 6.87-31.72, average daily share volume of 1.6M, 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 2.00 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 June 30, 2026, spot at $12.35, ATM IV 96.80%, IV rank 16.29%, expected move 27.75%. 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 17-day expiry.
Why this covered call structure on TSSI specifically: TSSI IV at 96.80% 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 27.75% (roughly $3.43 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 TSSI expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSSI should anchor to the underlying notional of $12.35 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 $12.35, the first option leg uses a $12.97 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 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 TSSI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $12.35 | long |
| Sell 1 | Call | $12.97 | N/A |
TSSI 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.
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.
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 $8.92 on the downside to $15.78 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 16.29% 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 96.80%. 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 $12.35, 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 96.80%), 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 TSSI covered call?
- The breakeven for the TSSI 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 TSSI market-implied 1-standard-deviation expected move is approximately 27.75%; 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 96.80% with IV rank near 16.29%, 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.