Is KULR Good for Covered Calls?

I own KULR. I’m writing this review from that position — not as a theoretical exercise.

KULR is the most honest review in this series because it covers a scenario most covered call income guides never address: what happens when a high-IV stock you’re running covered calls on pulls back significantly from your entry price. How do you manage it. What the income math looks like from underwater. And whether the strategy still makes sense at current prices for new traders considering the position.

The short answer: KULR is a Hold and Manage for existing position holders — and a Watch, Not Buy for new covered call income traders at current prices. This review explains exactly why.

(Update: Currently focusing on a concentrated portfolio strategy. Sold KULR to capitalize on a single high-conviction play, though it remains on my watchlist for a potential re-entry.)

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At a Glance

About KULR Technology Group

KULR Technology Group (NYSE American: KULR) is a Webster, Texas-based energy management and thermal technology company founded in 2013. The company designs and builds advanced battery systems for autonomous platforms, defense applications, digital infrastructure, and space — leveraging patented thermal runaway shield technology, carbon fiber thermal interface materials, and battery safety systems originally developed for NASA and the US military.

The product portfolio covers a wide range of battery and thermal management applications: KULR ONE Space Batteries for satellites and spacecraft, KULR ONE Air Batteries for unmanned aerial systems, SafeX safe storage solutions, KULR VIBE precision balancing systems, and the Xero VibeFan cooling solution for AI data centers and server environments.

Recent contract wins and partnerships include a five-year preferred battery supply agreement from Caban Energy, a joint development collaboration with Hylio to produce NDAA-compliant battery systems for unmanned agricultural drones, and a strategic collaboration with Robinson Helicopter Company to develop battery systems for the eR66 electric helicopter demonstrator. Option Samurai

The company has also positioned itself as a Bitcoin+ Treasury company — holding Bitcoin on its balance sheet alongside its operating business. This positioning attracted significant retail investor attention in late 2024 and early 2025, driving the stock to highs before the subsequent pullback.

FY2025 revenue grew 51% to $16 million — but the company reported a $62 million net loss driven largely by non-cash charges. The gap between revenue growth and net losses is the central tension in the KULR story — and the primary driver of the stock’s dramatic decline from highs. OptionCharts

Key Stats

What the Numbers Mean

The $2.33 share price is the defining fact of this review. KULR has declined approximately 76% over the past year — from highs near $14.50 to current levels near $2.33. Down 76.13% over the past year — that’s the most significant price decline of any stock in this review series. For existing holders with higher cost basis positions this decline is the central management challenge. For new traders considering the stock this is the most important context before making any decision. Unusual Whales

The $62M net loss vs $16M revenue sounds alarming — but the composition matters. The net loss was driven largely by non-cash charges rather than pure cash burn. Non-cash charges — stock compensation, depreciation, write-offs — don’t consume cash the way operating losses do. Cash reserves are estimated above $20 million with a pathway toward positive free cash flow projected for 2026. The company is not imminently at risk of running out of money — but the gap between losses and revenue still represents a genuine fundamental challenge that needs to close. OptionChartsOptionsai

Revenue growing 51% on $16M base is both impressive and context-dependent. 51% growth sounds strong — and it is for a company at this stage. But $16M in annual revenue supporting a business with $62M in losses means the company needs to scale dramatically before the economics normalize. Revenue is forecast to grow 124% in 2026 — if that materializes it’s genuinely transformative. If it doesn’t, the stock faces continued pressure. OptionCharts

Analyst price targets of $8-$12 with the stock at $2.33 imply 242-415% upside. That’s an extraordinary implied return — but it’s based on forward revenue estimates that require significant execution. Treat analyst targets as directional signals rather than predictions.

The Bitcoin+ Treasury positioning is a wild card. Holding Bitcoin on the balance sheet creates a secondary correlation between KULR and crypto markets — meaning the stock can move on Bitcoin news entirely unrelated to battery technology fundamentals. This adds volatility above and beyond what the operating business alone would generate.

Income Scorecard

Overall Income Grade: C+

KULR earns a C+ — the lowest grade in this review series — driven primarily by the liquidity constraints at current price levels and the severe price decline that has eroded position value faster than premium income can offset. The low capital requirement and no-dividend clean structure prevent a lower grade. For existing holders the grade is higher — you already own the shares and any premium collected reduces your cost basis. For new traders the grade reflects genuine concerns about execution quality at sub-$3 price levels.

Premium Quality

The premium quality on KULR is genuinely interesting — when it’s accessible. The elevated implied volatility on a stock this volatile means the percentage yields are meaningful relative to the position value. A 30-day covered call at 20% out of the money on a $2.33 stock might generate $0.08-$0.15 per share — which sounds small in dollar terms but represents 3-6% monthly yield on the position.

The dollar reality:

The low share price means you need significant share count to generate meaningful dollar income. On 100 shares you’re generating approximately $12/month — not worth the effort. On 2,000 shares (my approximate position size in this ticker) the math becomes more interesting. The key insight: KULR is a volume game. The income only works at scale — which means it’s primarily appropriate for holders who accumulated shares at various price levels and are now running covered calls to recover basis.

For a complete breakdown of how premium is determined see our guide on How Options Pricing Works.

Liquidity — The Critical Constraint

This is the most important section of the KULR review — and the one most covered call guides skip entirely when covering micro-cap stocks.

At $2.33 per share KULR is a micro-cap stock trading in a very thin options market. The practical implications for covered call traders are significant:

Wide bid-ask spreads. On a $0.10-$0.15 option, a $0.05-$0.08 bid-ask spread represents 33-80% of the option’s value just in spread cost. You’re giving away a significant percentage of your premium to the market maker before the stock moves a dollar. This is the hidden cost that makes micro-cap covered calls much less attractive than the raw percentage yield suggests.

Low open interest. Many strikes on KULR options chains have open interest of 50-200 contracts — compared to 1,000-5,000+ on the stocks earlier in this review series. Low open interest means difficulty exiting positions, difficulty rolling, and unreliable fills even at limit prices.

The practical test before entering any KULR covered call: Check that your chosen strike has at least 200 contracts of open interest and a bid-ask spread under $0.05. If either condition isn’t met — skip that cycle and wait for better conditions. For a complete guide on evaluating options liquidity see our How to Read the Options Chain guide.

The honest assessment: At current prices KULR’s options liquidity is the biggest obstacle to running covered calls systematically. Some months it works cleanly. Other months the chain is too thin to execute efficiently. This inconsistency is the primary reason KULR earns a D on liquidity despite having elevated IV.

Price Stability — The Hardest Conversation

KULR is down 76.13% over the past year. There’s no way to frame that positively for covered call income traders — and this review won’t try. Unusual Whales

The covered call strategy generates income through premium collection — but it provides only limited downside protection. On a stock that declines 76% in twelve months, the premium collected across all those cycles covers only a fraction of the stock’s decline in value.

The real math on a hypothetical position:

Assume you bought 2,000 shares at $6.00 average cost ($12,000 position) and ran covered calls consistently:

• 12 monthly cycles at 4% average premium: approximately $480/month × 12 = $5,760 collected
• Stock decline from $6.00 to $2.33: loss of $3.67/share × 2,000 shares = $7,340 unrealized loss
• Net position after 12 months of covered calls: -$1,580

The covered calls turned a $7,340 unrealized loss into a $1,580 net loss — a meaningful improvement, but not a recovery. This is the honest math of covered calls on a declining stock. The strategy cushions the decline. It doesn’t reverse it.

What this means for strategy going forward:

For existing KULR holders the covered call income strategy is still rational — it continues reducing cost basis and generates income while waiting for either a recovery or a decision to exit. Every premium cycle brings the effective cost basis lower.

For new traders the math is different. Entering a covered call position specifically for income on a stock in a 76% drawdown carries meaningful risk that the stock continues declining — and no amount of premium income offsets a further 50% decline from current levels.

The scenario analysis at current prices:

At current prices the risk/reward is asymmetric in an interesting way — significant upside if the analyst targets prove correct, limited additional downside given the stock is already at historically depressed levels. That asymmetry is part of why existing holders continue running the strategy.

Dividend Risk

KULR pays no dividend — a clean story for covered call traders. No ex-dividend complications, no early assignment risk tied to quarterly payments. For a complete explanation of assignment risk see our guide on What Is Assignment in Options Trading.

Capital Required

At approximately $2.33 per share, 100 shares of KULR costs roughly $233 — the most accessible entry point of any stock in this review series. This accessibility is genuinely meaningful for small account traders who want to learn covered call mechanics on a real position with real premium without committing thousands of dollars.

The small account angle: A trader with a $5,000 account can own 500 shares of KULR ($1,165) and run 5 covered call contracts — representing approximately 23% of their account. That’s slightly above the 15% guideline but within reason for a small account learning the mechanics. The dollar income is modest but the learning experience is real.

The caveat: Low share price accessibility doesn’t eliminate the liquidity problem in the options chain. 500 shares with 5 contracts still faces the same bid-ask spread and open interest challenges described in the Liquidity section above.

Earnings Risk

KULR reports earnings on May 13, 2026. The last earnings report produced an EPS of -$0.97, missing expectations, and the stock fell 14.8% following the announcement. Unusual WhalesNasdaq

That 14.8% post-earnings decline on a stock already down 76% illustrates the specific challenge of managing KULR covered calls around earnings. A 14.8% move on a $2.33 stock is approximately $0.35/share — which can represent two to three months of covered call premium in a single session.

Management approach for May 13:

Option A — Close before earnings (recommended) With the stock already at depressed levels and the last report producing a significant negative reaction — close any short calls 2-3 days before May 13. The premium you give up is minimal given where premiums are at current prices. Eliminate the gap risk entirely.

Option B — Hold with wide strikes If your covered call strike is at $3.00 or higher with the stock at $2.33 — that’s 29% out of the money. A 14.8% post-earnings move similar to last quarter would still leave your $3.00 strike safely out of the money. Evaluate your specific buffer.

Option C — Don’t run covered calls into this earnings at all Given the thin options liquidity and the history of significant post-earnings moves — sitting out the earnings cycle entirely and re-establishing after the announcement is a legitimate approach. Missing one cycle is better than having a bad earnings reaction make an already-difficult position worse.

My approach on KULR earnings: I close or reduce before the announcement every cycle without exception. The premium available doesn’t justify the gap risk given the stock’s history. See our complete guides on Best Options Strategy for Earnings and What Is IV Crush.

Sector Outlook

The KULR business thesis is more interesting than the current stock price suggests — and understanding the disconnect is important for anyone managing an existing position.

The battery and thermal management sector KULR operates in has genuine multi-year tailwinds: defense drone proliferation, AI data center power management, electric aviation, and domestic battery supply chain development. KULR’s NDAA-compliant domestic manufacturing focus and recent defense partnerships position it directly in the center of the Pentagon’s push for US-built drone battery systems. Option Samurai

Revenue is forecast to grow 124% in 2026 — which if achieved would represent a genuine inflection point from a $16M revenue base toward $36M+. At that scale the non-cash losses become more manageable relative to the business. A pathway to positive free cash flow is projected for 2026 with potential escalation to $37M in 2027. OptionChartsOptionsai

The honest risk: every one of these projections depends on execution. Converting development agreements into production contracts, achieving the 10,000 drone packs per month production target management cited, and closing the gap between development revenue and product revenue are all execution milestones that haven’t been hit yet.

The Bitcoin+ Treasury positioning adds a layer of complexity — the stock now partially trades on crypto sentiment rather than purely on battery technology fundamentals. This introduces correlation to an asset class with its own significant volatility.

For covered call income traders the sector outlook matters primarily as a floor assessment: is this company at risk of going to zero? At current cash levels and with active defense contracts the answer appears to be no — which is why the covered call strategy on existing positions remains rational even through the drawdown.

KULR vs RDW

The comparison is stark. RDW wins on every metric relevant to covered call income trading: liquidity, consistency, price stability, and execution reliability. KULR wins only on capital accessibility and implied analyst upside — both of which are more relevant to a speculative stock thesis than to an income strategy.

For income generation the RDW position is significantly more reliable. For potential capital appreciation alongside income — KULR’s analyst targets imply significantly more upside if the business execution materializes.

Who It’s For

KULR covered calls make sense for:

• Existing holders with established positions — every premium cycle reduces cost basis and generates income while the thesis plays out
• Small account traders ($2,000-$5,000) who want to learn covered call mechanics on a real position with real premium at minimal capital commitment
• Traders with high conviction in the defense drone and domestic battery supply thesis who plan to hold regardless
• Experienced options traders who can navigate thin options chains and execute at or near the midpoint consistently

KULR covered calls do not make sense for:

• New covered call traders looking for a primary income position — the liquidity constraints and price instability make consistent execution too difficult
• Traders who need reliable monthly income — KULR’s thin options chain means some months you simply can’t get a fair fill
• Anyone without a clear plan for managing through earnings on May 13
• Traders who can’t emotionally handle further downside from already-depressed levels

My Take

I own KULR. I’m managing it actively with covered calls. And I’m honest about what that looks like in practice.

The covered call strategy on KULR at current prices is a cost basis recovery operation — not an income generation strategy. Every premium I collect brings my effective entry price lower. Every cycle that expires worthless is a small step in the right direction. But I’m not running KULR covered calls because it’s the best income opportunity in my portfolio. I’m running them because I own the shares and selling covered calls is better than doing nothing while waiting for a recovery.

The thesis that keeps me holding: real defense contracts, NDAA-compliant domestic manufacturing positioning, analyst targets of $8-$12 on a $2.33 stock, and a revenue growth trajectory that — if it materializes — would represent a genuine fundamental rerating. That’s a speculative thesis not an income thesis. The covered calls make the wait cheaper.

What I’m watching: the May 13 earnings report. If KULR shows meaningful progress on converting development agreements to production revenue and demonstrates improvement in product gross margins — that’s the signal the thesis is on track. If the report shows continued revenue misses and margin deterioration — I’ll reassess the position size.

The honest message for anyone considering KULR: this is a turnaround speculation with covered calls as a holding income strategy — not an income stock with upside potential. Know which one you’re buying before you commit capital.

Frequently Asked Questions

Is KULR good for covered calls?

For existing holders — yes, running covered calls on KULR makes sense as a cost basis recovery strategy. For new traders seeking covered call income — no. The thin options chain at current sub-$3 prices makes consistent execution unreliable, and the stock’s 76% decline over the past year reflects fundamental challenges that premium income alone can’t offset. New capital seeking covered call income is better deployed in more liquid, more stable positions like RDW or RCAT.

How much premium can you make selling KULR covered calls?

At current price levels and elevated implied volatility, a 30-day covered call generates approximately $0.08-$0.15 per share — representing 3-6% monthly yield on the position value. Dollar income is directly tied to share count: 1,000 shares generates approximately $80-$150/month, 5,000 shares approximately $400-$750/month. Actual results depend heavily on options chain liquidity — some cycles provide clean fills, others don’t.

What is the KULR earnings date?

KULR reports Q1 2026 earnings on May 13, 2026. The most recent earnings report resulted in the stock falling 14.8% following the announcement. Covered call holders should close or reduce positions before the announcement to avoid gap risk. Unusual WhalesNasdaq

Why has KULR stock declined so much?

KULR reported a $62 million net loss for FY2025 on $16 million in revenue — a significant loss-to-revenue ratio even accounting for non-cash charges. The stock had run dramatically higher on Bitcoin Treasury positioning and defense sector enthusiasm in late 2024 and early 2025 — creating an elevated valuation that the fundamentals couldn’t support. The subsequent repricing reflects the market demanding evidence of revenue scaling before rewarding the stock with premium multiples. OptionCharts

Should I sell covered calls on KULR if I’m already down significantly?

Yes — if you’re holding and plan to continue holding, selling covered calls is rational regardless of where you bought. Every premium collected reduces your effective cost basis and generates income while you wait for either a recovery or an exit decision. The alternative — holding without selling calls — generates no income and achieves nothing the covered call strategy doesn’t also achieve. See our complete Covered Call Strategy guide for the full framework.

What is KULR’s analyst price target?

Four analysts cover KULR with a median price target of $10.00 ranging from $8.00 to $12.00 — implying approximately 242-415% upside from current prices. These targets are based on forward revenue projections showing 124% growth in 2026. Analyst targets on micro-cap stocks with thin coverage carry significant uncertainty — treat them as directional rather than predictive. Barchart

How does KULR compare to RDW for covered call income?

RDW is significantly superior to KULR for covered call income at current prices. RDW offers deeper options liquidity, more consistent execution, higher absolute dollar premium on equivalent capital, and a less severe drawdown profile. KULR’s only advantages over RDW are minimal capital requirement per contract and significantly higher implied analyst upside. For income generation RDW wins decisively. For speculative upside alongside income KULR’s targets are more dramatic.

What is the minimum account size to run KULR covered calls?

At $2.33 per share, 100 shares costs approximately $233 — making KULR the most capital-accessible covered call position in this review series. A meaningful income position requires significantly more shares: 1,000 shares ($2,330) generates approximately $80-$150/month, 5,000 shares ($11,650) generates approximately $400-$750/month. The challenge is not capital requirement — it’s options chain liquidity which becomes increasingly important at larger contract counts.