ADUS Covered Call Strategy
ADUS (Addus HomeCare Corporation), in the Healthcare sector, (Medical - Care Facilities industry), listed on NASDAQ.
Addus HomeCare Corporation, together with its subsidiaries, provides personal care services to elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization or institutionalization in the United States. It operates through three segments: Personal Care, Hospice, and Home Health. The Personal Care segment provides non-medical assistance with activities of daily living. This segment offers services that include assistance with bathing, grooming, oral care, feeding and dressing, medication reminders, meal planning and preparation, housekeeping, and transportation services. The Hospice segment provides palliative nursing care, social work, spiritual counseling, homemaker, and bereavement counseling services for people who are terminally ill, as well as related services for their families. The Home Health segment offers skilled nursing and physical, occupational, and speech therapy for the individuals who requires assistance during an illness or after hospitalization.
ADUS (Addus HomeCare Corporation) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $1.76B, a trailing P/E of 17.51, a beta of 0.92 versus the broader market, a 52-week range of 90.89-124.44, average daily share volume of 259K, a public-listing history dating back to 2009, approximately 6K full-time employees. These structural characteristics shape how ADUS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.92 places ADUS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a covered call on ADUS?
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.
Current ADUS snapshot
As of May 15, 2026, spot at $90.75, ATM IV 75.10%, IV rank 13.26%, expected move 21.53%. The covered call on ADUS below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 63-day expiry.
Why this covered call structure on ADUS specifically: ADUS IV at 75.10% is on the cheap side of its 1-year range, which means a premium-selling ADUS covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 21.53% (roughly $19.54 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ADUS expiries trade a higher absolute premium for lower per-day decay. Position sizing on ADUS should anchor to the underlying notional of $90.75 per share and to the trader's directional view on ADUS stock.
ADUS covered call setup
The ADUS 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 ADUS near $90.75, the first option leg uses a $95.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ADUS chain at a 63-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 ADUS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $90.75 | long |
| Sell 1 | Call | $95.00 | $3.00 |
ADUS covered call risk and reward
- Net Premium / Debit
- -$8,775.00
- Max Profit (per contract)
- $725.00
- Max Loss (per contract)
- -$8,774.00
- Breakeven(s)
- $87.75
- Risk / Reward Ratio
- 0.083
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.
ADUS covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on ADUS. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$8,774.00 |
| $20.07 | -77.9% | -$6,767.58 |
| $40.14 | -55.8% | -$4,761.16 |
| $60.20 | -33.7% | -$2,754.73 |
| $80.27 | -11.6% | -$748.31 |
| $100.33 | +10.6% | +$725.00 |
| $120.40 | +32.7% | +$725.00 |
| $140.46 | +54.8% | +$725.00 |
| $160.52 | +76.9% | +$725.00 |
| $180.59 | +99.0% | +$725.00 |
When traders use covered call on ADUS
Covered calls on ADUS are an income strategy run on existing ADUS stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
ADUS thesis for this covered call
The market-implied 1-standard-deviation range for ADUS extends from approximately $71.21 on the downside to $110.29 on the upside. A ADUS covered call collects premium on an existing long ADUS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether ADUS will breach that level within the expiration window. Current ADUS IV rank near 13.26% 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 ADUS at 75.10%. As a Healthcare name, ADUS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ADUS-specific events.
ADUS 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. ADUS positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ADUS alongside the broader basket even when ADUS-specific fundamentals are unchanged. Short-premium structures like a covered call on ADUS carry tail risk when realized volatility exceeds the implied move; review historical ADUS earnings reactions and macro stress periods before sizing. Always rebuild the position from current ADUS chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on ADUS?
- A covered call on ADUS is the covered call strategy applied to ADUS (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 ADUS stock trading near $90.75, the strikes shown on this page are snapped to the nearest listed ADUS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ADUS 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 ADUS covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 75.10%), the computed maximum profit is $725.00 per contract and the computed maximum loss is -$8,774.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ADUS covered call?
- The breakeven for the ADUS covered call priced on this page is roughly $87.75 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current ADUS market-implied 1-standard-deviation expected move is approximately 21.53%; 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 ADUS?
- Covered calls on ADUS are an income strategy run on existing ADUS 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 ADUS implied volatility affect this covered call?
- ADUS ATM IV is at 75.10% with IV rank near 13.26%, 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.