LegalZoom.com, Inc. (LZ) Covered Calls
LegalZoom.com, Inc. is the leading digital platform for small business legal and compliance solutions. Transitioning to a subscription-led model in 2026, the company leverages its "human-in-the-loop" AI strategy to combine automated business formation with expert attorney advice. With a focus on the full business lifecycle, LegalZoom provides ongoing compliance, intellectual property protection, and tax services to nearly 2 million subscribers.
You can sell covered calls on LegalZoom.com, Inc. to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for LZ (prices last updated Tue 4:16 PM ET):
| LegalZoom.com, Inc. (LZ) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 6.55 | -0.02 | 6.16 | 6.65 | 1.5M | 82 | 1.1 |
| Covered Calls For LegalZoom.com, Inc. (LZ) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| May 15 | 7 | 0.35 | 6.30 | 5.6% | 81.8% | |
| Jun 18 | 7 | 0.55 | 6.10 | 9.0% | 55.7% | |
| Subscribers get access to the full covered call chain, and more features. | ||||||
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Core Business and Products
LegalZoom (LZ) has evolved from a transactional formation site into a comprehensive small business ecosystem. Its revenue is now dominated by subscriptions (approx. 65%), anchored by "LegalZoom Total Compliance" and attorney-led legal plans. In early 2026, the company launched its "AI-Powered Grant Finder" and integrated in-chat business formation within leading AI models, marking a significant shift toward AI-native service delivery.
Competitive Landscape
LegalZoom operates in a "barbell" market, competing with low-cost digital startups on one end and traditional law firms on the other. Its competitive advantage lies in its massive scale, brand recognition, and 2026 partnerships with tech giants to support the "Open Agentic Web."
- DocuSign, Inc.: A primary peer in digital agreements and legal-tech workflow automation.
- GoDaddy Inc.: A key partner and competitor in the initial "entrepreneurial funnel" for domain and business setup.
- Intuit Inc.: A major peer in the small business compliance and tax space via QuickBooks.
- Shopify Inc.: A leading commerce platform for small businesses that serves as a primary benchmark for the entrepreneurial economy and maintains high option liquidity.
- BILL Holdings, Inc.: A peer in back-office financial automation for SMBs.
Strategic Outlook and Innovation
Under CEO **Jeffrey Stibel**, LegalZoom’s 2026 outlook targets significant margin expansion through "profitable scaling." The "human-in-the-loop" approach uses AI to automate routine documentation while funneling complex tasks to its network of independent attorneys. By expanding beyond formation into high-value lifecycle services—like LZ Tax and IP protection—the company aims to maximize customer lifetime value while maintaining a fortress balance sheet with an active $100M share buyback program.
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Want more examples? LYV Covered Calls | LZB Covered Calls
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Covered Call Strategy Risks: While covered call writing is often considered a conservative options strategy, it is not without risk. By selling a covered call, you are limiting your potential upside profit from the underlying stock. You remain exposed to the full downside risk of owning the underlying stock. In the event of a significant decline in the stock price, the premium received may not be sufficient to offset your losses.
No Guarantee of Performance: Past performance is not indicative of future results. Any examples, calculations, or hypothetical scenarios presented on this site are for illustrative purposes only and do not guarantee future returns or outcomes. Market conditions, liquidity, and trading system failures can affect your ability to execute trades at desired prices.
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