WIMI Covered Call Strategy
WIMI (WiMi Hologram Cloud Inc.), in the Communication Services sector, (Advertising Agencies industry), listed on NASDAQ.
WiMi Hologram Cloud Inc. provides augmented reality (AR) based holographic services and products in China. It operates in three segments: AR Advertising Services, AR Entertainment, and Semiconductor Related Products and Services. The company primarily offers holographic AR advertising services and holographic AR entertainment products. Its holographic AR advertising software enables users to insert into video footages real or animated three-dimensional objects; and online holographic AR advertising solution embeds holographic AR ads into films and shows. The company's holographic AR entertainment products consist primarily of payment middleware software, game distribution platform, and holographic mixed reality software. In addition, it engages in the provision of central processing algorithm services, and provides computer chip products to enterprise customers, as well as sells comprehensive solutions for central processing algorithms and related services with software and hardware integration.
WIMI (WiMi Hologram Cloud Inc.) trades in the Communication Services sector, specifically Advertising Agencies, with a market capitalization of approximately $75.6M, a trailing P/E of 1.77, a beta of 0.33 versus the broader market, a 52-week range of 1.46-5.65, average daily share volume of 491K, a public-listing history dating back to 2020, approximately 107 full-time employees. These structural characteristics shape how WIMI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.33 indicates WIMI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 1.77 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a covered call on WIMI?
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 WIMI snapshot
As of May 15, 2026, spot at $1.53, ATM IV 25.00%, IV rank 0.78%, expected move 7.17%. The covered call on WIMI 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 WIMI specifically: WIMI IV at 25.00% is on the cheap side of its 1-year range, which means a premium-selling WIMI covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.17% (roughly $0.11 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 WIMI expiries trade a higher absolute premium for lower per-day decay. Position sizing on WIMI should anchor to the underlying notional of $1.53 per share and to the trader's directional view on WIMI stock.
WIMI covered call setup
The WIMI 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 WIMI near $1.53, the first option leg uses a $1.61 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WIMI 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 WIMI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $1.53 | long |
| Sell 1 | Call | $1.61 | N/A |
WIMI 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.
WIMI covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on WIMI. 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 WIMI
Covered calls on WIMI are an income strategy run on existing WIMI stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
WIMI thesis for this covered call
The market-implied 1-standard-deviation range for WIMI extends from approximately $1.42 on the downside to $1.64 on the upside. A WIMI covered call collects premium on an existing long WIMI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether WIMI will breach that level within the expiration window. Current WIMI IV rank near 0.78% 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 WIMI at 25.00%. As a Communication Services name, WIMI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WIMI-specific events.
WIMI 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. WIMI positions also carry Communication Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WIMI alongside the broader basket even when WIMI-specific fundamentals are unchanged. Short-premium structures like a covered call on WIMI carry tail risk when realized volatility exceeds the implied move; review historical WIMI earnings reactions and macro stress periods before sizing. Always rebuild the position from current WIMI chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on WIMI?
- A covered call on WIMI is the covered call strategy applied to WIMI (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 WIMI stock trading near $1.53, the strikes shown on this page are snapped to the nearest listed WIMI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WIMI 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 WIMI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 25.00%), 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 WIMI covered call?
- The breakeven for the WIMI 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 WIMI market-implied 1-standard-deviation expected move is approximately 7.17%; 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 WIMI?
- Covered calls on WIMI are an income strategy run on existing WIMI 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 WIMI implied volatility affect this covered call?
- WIMI ATM IV is at 25.00% with IV rank near 0.78%, 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.