YSS Covered Call Strategy
YSS (York Space Systems, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.
York Space Systems, Inc. operates as a space and defense prime providing a comprehensive suite of mission-critical solutions for national security, government and commercial customers in the United States. It provides space and defense primes with proprietary hardware and software capabilities designed to address customers’ requirements across the elements of the space ecosystem throughout the mission lifecycle. The company also engages in the design, production, integration, and operation of spacecraft to manage spacecraft and constellations. It offers S-CLASS, LX-CLASS, and M-CLASS spacecraft, which are satellite platforms to a range of space market needs. In addition, the company provides software that enables versatile integration of a variety of payloads for customers and supply chain commonalities across platforms, as well as software-enabled services. The company was formerly known as Yellowstone Midco Holdings II, LLC and changed its name to York Space Systems, Inc. in January 2026.
YSS (York Space Systems, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $1.45B, a beta of 4.38 versus the broader market, a 52-week range of 10.01-44.54, average daily share volume of 2.2M, a public-listing history dating back to 2026, approximately 710 full-time employees. These structural characteristics shape how YSS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 4.38 indicates YSS 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 YSS?
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.
YSS snapshot
As of August 14, 2026, spot at $11.16, ATM IV 110.60%, IV rank 2.36%, expected move 31.71%. The covered call on YSS below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this covered call structure on YSS specifically: YSS IV at 110.60% is on the cheap side of its 1-year range, which means a premium-selling YSS covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 31.71% (roughly $3.54 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated YSS expiries trade a higher absolute premium for lower per-day decay. Position sizing on YSS should anchor to the underlying notional of $11.16 per share and to the trader's directional view on YSS stock.
YSS covered call setup
The YSS 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 YSS at $11.16 on that close, the first option leg uses a $11.72 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed YSS chain at a 35-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 YSS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $11.16 | long |
| Sell 1 | Call | $11.72 | N/A |
YSS 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.
YSS covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on YSS. 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 YSS
Covered calls on YSS are an income strategy run on existing YSS stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
YSS thesis for this covered call
The market-implied 1-standard-deviation range for YSS extends from approximately $7.62 on the downside to $14.70 on the upside. A YSS covered call collects premium on an existing long YSS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether YSS will breach that level within the expiration window. Current YSS IV rank near 2.36% 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 YSS at 110.60%. As a Industrials name, YSS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to YSS-specific events.
YSS 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. YSS positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move YSS alongside the broader basket even when YSS-specific fundamentals are unchanged. Short-premium structures like a covered call on YSS carry tail risk when realized volatility exceeds the implied move; review historical YSS earnings reactions and macro stress periods before sizing. Always rebuild the position from current YSS chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on YSS?
- A covered call on YSS is the covered call strategy applied to YSS (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 YSS stock at $11.16 on the most recent close, the strikes shown on this page are snapped to the nearest listed YSS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are YSS 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 YSS covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 110.60%), 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 YSS covered call?
- The breakeven for the YSS covered call priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The YSS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 31.71%; 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 YSS?
- Covered calls on YSS are an income strategy run on existing YSS 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 YSS implied volatility affect this covered call?
- YSS ATM IV is at 110.60% with IV rank near 2.36%, 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.