VERI Covered Call Strategy
VERI (Veritone, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.
Veritone, Inc., together with its subsidiaries, provides artificial intelligence (AI) computing solutions in the United States and the United Kingdom. It develops and operates aiWARE platform, an AI operating system that uses machine learning algorithms or AI models, such as perception, prediction, and problem solving and optimization, as well as cognitive processes, including transcription, language translation, face detection and recognition, object detection and recognition, logo recognition, sentiment analysis, text keyword/topic analysis, audio/video fingerprinting, geolocation, visual moderation, and optical character recognition to reveal valuable insights from vast amounts of structured and unstructured data. The company also provides media advertising agency services, including media planning and strategy, media buying and placement, campaign messaging, clearance verification and attribution, and custom analytics directly to advertisers through outbound sales networking, and client and partner referrals, as well as indirectly through advertising agencies or marketing consultants. It serves media and entertainment, government, legal and compliance, energy, and other vertical markets. The company was formerly known as Veritone Delaware, Inc. and changed its name to Veritone, Inc. in July 2014. Veritone, Inc. was incorporated in 2014 and is headquartered in Denver, Colorado.
VERI (Veritone, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $101.8M, a beta of 2.27 versus the broader market, a 52-week range of 1.22-9.42, average daily share volume of 2.5M, a public-listing history dating back to 2017, approximately 469 full-time employees. These structural characteristics shape how VERI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.27 indicates VERI 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 VERI?
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 VERI snapshot
As of May 15, 2026, spot at $2.08, ATM IV 102.90%, IV rank 17.14%, expected move 29.50%. The covered call on VERI 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 VERI specifically: VERI IV at 102.90% is on the cheap side of its 1-year range, which means a premium-selling VERI covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 29.50% (roughly $0.61 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 VERI expiries trade a higher absolute premium for lower per-day decay. Position sizing on VERI should anchor to the underlying notional of $2.08 per share and to the trader's directional view on VERI stock.
VERI covered call setup
The VERI 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 VERI near $2.08, the first option leg uses a $2.18 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VERI 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 VERI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $2.08 | long |
| Sell 1 | Call | $2.18 | N/A |
VERI 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.
VERI covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on VERI. 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 VERI
Covered calls on VERI are an income strategy run on existing VERI stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
VERI thesis for this covered call
The market-implied 1-standard-deviation range for VERI extends from approximately $1.47 on the downside to $2.69 on the upside. A VERI covered call collects premium on an existing long VERI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether VERI will breach that level within the expiration window. Current VERI IV rank near 17.14% 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 VERI at 102.90%. As a Technology name, VERI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VERI-specific events.
VERI 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. VERI positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move VERI alongside the broader basket even when VERI-specific fundamentals are unchanged. Short-premium structures like a covered call on VERI carry tail risk when realized volatility exceeds the implied move; review historical VERI earnings reactions and macro stress periods before sizing. Always rebuild the position from current VERI chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on VERI?
- A covered call on VERI is the covered call strategy applied to VERI (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 VERI stock trading near $2.08, the strikes shown on this page are snapped to the nearest listed VERI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are VERI 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 VERI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 102.90%), 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 VERI covered call?
- The breakeven for the VERI 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 VERI market-implied 1-standard-deviation expected move is approximately 29.50%; 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 VERI?
- Covered calls on VERI are an income strategy run on existing VERI 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 VERI implied volatility affect this covered call?
- VERI ATM IV is at 102.90% with IV rank near 17.14%, 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.