Commercial Fixed Wing
Flight Crew Air Transport Pilot (ATP); Flight Crew Instrument; Flight Crew Multiengine
Flight Crew Last 90 Days 135; Flight Crew Total 14201; Flight Crew Type 135
Deviation - Altitude Overshoot; Deviation / Discrepancy - Procedural Clearance
Air Traffic Control Issued Advisory / Alert; Flight Crew Returned To Clearance
Aircraft; Environment - Non Weather Related; Human Factors
I was the PM. Very light aircraft takeoff weight and fairly quick initial altitude level off - 3;000 feet.   I called out of 2 for 3 thousand.  Climbing through 2;700 feet; I stated 'watch your altitude we are leveling off at 3;000.'  I then called out FMA annunciation of 'Speed - VNAV ALT.'  FO immediately began level off.  Wasn't aggressive enough in level off.  We climbed as high as 3;150 feet and then immediately descended back to 3;000 feet. ATC - ZZZ Departure frequency stated; I show you at 3;200 feet and you have traffic at 4;000.  At that time we were level at 3;000 and I responded we were level at 3;000.
First Officer flying miscalculated level off process.  Aircraft very light and climbing rapidly.  Exceeded altitude by 150 feet.  Adjusted back in timely manner; but ATC called the deviation.
Air carrier flight crew reported an altitude overshoot due to a light aircraft.