Kyndryl Holdings, Inc. (KD) Covered Calls

Kyndryl Holdings, Inc. is the world’s largest IT infrastructure services provider, specializing in the design, management, and modernization of complex, mission-critical information systems. Spun off from IBM in 2021, it serves as the operational backbone for thousands of global enterprise customers.

You can sell covered calls on Kyndryl Holdings, 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 KD (prices last updated Tue 4:16 PM ET):

Kyndryl Holdings, Inc. (KD) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
11.65 +0.24 11.48 11.88 5.9M 11 2.6
Covered Calls For Kyndryl Holdings, Inc. (KD)
Expiration Strike Call Bid Net Debit Return
If Flat
Annualized
Return If Flat
Mar 20 12 0.70 11.18 6.3% 92.0%
Apr 17 12 1.10 10.78 10.2% 70.2%
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Kyndryl Holdings, Inc. (NYSE: KD), headquartered in New York City, is the dominant force in the managed infrastructure services market. As an independent entity since its 2021 spin-off from IBM, Kyndryl manages the "technology plumbing"—data centers, hybrid cloud environments, and networking—for over 75% of the Fortune 100. The company’s business model has shifted from low-margin legacy maintenance to high-value "Kyndryl Consult" services. By breaking free from its former parent’s product constraints, Kyndryl has established deep strategic alliances with hyperscale cloud providers (AWS, Google Cloud, and Microsoft Azure), allowing it to help global enterprises migrate and optimize their workloads across diverse, multi-cloud platforms while maintaining the rigorous security required by highly regulated industries like banking and healthcare.

Core Business and Segments

  1. Cloud Services: Helps enterprises design and manage hybrid cloud strategies, ensuring seamless interoperability between private on-premise servers and public cloud environments.
  2. Core Enterprise & zCloud: The company’s "moat" segment, managing the mission-critical mainframes and infrastructure that power global financial transactions and airline reservations.
  3. Kyndryl Consult: A high-margin advisory arm that guides C-suite executives through digital transformation, cybersecurity resilience, and AI readiness.
  4. Digital Workplace: Provides the managed services and security frameworks necessary for large-scale, distributed hybrid work environments.

Competitive Landscape

Kyndryl operates in a sector where scale and operational reliability are the primary barriers to entry. Its most direct optionable rival remains IBM, which still provides high-end consulting and software but now partners with Kyndryl for implementation. It also competes fiercely with DXC Technology in the managed services space and Accenture for large-scale transformation projects. Kyndryl differentiates itself by its "freedom to play" strategy, which allows it to remain vendor-agnostic, choosing the best hardware and software solutions for the client regardless of the manufacturer.

Strategic Outlook and Innovation

The long-term strategy for Kyndryl is defined by "The Three-A Strategy": Alliances, Advanced Delivery, and Accounts. As of early 2026, the company has completed its "Focus" initiative, having successfully shed billions in low-margin, money-losing legacy contracts inherited during the spin-off. This evergreen strategy has resulted in a significant expansion of pretax margins. By 2026, Kyndryl is also leveraging its unique access to enterprise data to fuel **Kyndryl Bridge**, an AI-powered integration platform that uses observability data to predict and prevent system outages before they occur. This transition from "reactive" to "predictive" maintenance has reduced operational costs by an estimated 20% across its customer base.

Innovation at Kyndryl is centered on "AIOps" (Artificial Intelligence for IT Operations) and Cyber-Resilience. The company is deploying automated "remediation bots" that can resolve 40% of routine infrastructure issues without human intervention. Furthermore, Kyndryl is a leader in "Quantum-Ready" security, helping banks upgrade their encryption protocols to withstand future computing threats. By merging its decades of experience managing the world’s most complex mainframes with a modern, cloud-native consulting approach, Kyndryl Holdings aims to remain the indispensable partner for the digital evolution of the global economy.