ALMS Covered Call Strategy
ALMS (Alumis Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Alumis Inc., a clinical stage biopharmaceutical company, focuses on the development and commercialization of medicines for autoimmune disorders. The company offers envudeucitinib, a tyrosine kinase 2 (TYK2) inhibitor for the treatment of plaque psoriasis and systemic lupus erythematosus; and A-005, a central nervous system-penetrant allosteric TYK2 inhibitor that is in Phase 1 for the treatment of neuroinflammatory and neurodegenerative diseases. It also develops lonigutamab, a monoclonal antibody targeting IGF-1R for the treatment of thyroid eye diseases; and interferon regulatory factor 5 (IRF5) to address immune dysfunction. The company was formerly known as Esker Therapeutics, Inc. and changed its name to Alumis Inc. in January 2022. Alumis Inc. was incorporated in 2021 and is headquartered in South San Francisco, California.
ALMS (Alumis Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $3.12B, a beta of -0.67 versus the broader market, a 52-week range of 3.76-31.35, average daily share volume of 1.2M, a public-listing history dating back to 2024, approximately 225 full-time employees. These structural characteristics shape how ALMS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.67 indicates ALMS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a covered call on ALMS?
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.
ALMS snapshot
As of August 14, 2026, spot at $25.02, ATM IV 204.80%, IV rank 46.33%, expected move 58.71%. The covered call on ALMS below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this covered call structure on ALMS specifically: ALMS IV at 204.80% is mid-range versus its 1-year history, so the credit collected on a ALMS covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 58.71% (roughly $14.69 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ALMS expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALMS should anchor to the underlying notional of $25.02 per share and to the trader's directional view on ALMS stock.
ALMS covered call setup
The ALMS covered call below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ALMS at $25.02 on that close, the first option leg uses a $26.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALMS chain at a 35-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 ALMS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $25.02 | long |
| Sell 1 | Call | $26.00 | $5.50 |
ALMS covered call risk and reward
- Net Premium / Debit
- -$1,952.00
- Max Profit (per contract)
- $648.00
- Max Loss (per contract)
- -$1,951.00
- Breakeven(s)
- $19.52
- Risk / Reward Ratio
- 0.332
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.
ALMS covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on ALMS. 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% | -$1,951.00 |
| $5.54 | -77.9% | -$1,397.90 |
| $11.07 | -55.7% | -$844.81 |
| $16.60 | -33.6% | -$291.71 |
| $22.13 | -11.5% | +$261.38 |
| $27.66 | +10.6% | +$648.00 |
| $33.20 | +32.7% | +$648.00 |
| $38.73 | +54.8% | +$648.00 |
| $44.26 | +76.9% | +$648.00 |
| $49.79 | +99.0% | +$648.00 |
When traders use covered call on ALMS
Covered calls on ALMS are an income strategy run on existing ALMS stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
ALMS thesis for this covered call
The market-implied 1-standard-deviation range for ALMS extends from approximately $10.33 on the downside to $39.71 on the upside. A ALMS covered call collects premium on an existing long ALMS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether ALMS will breach that level within the expiration window. Current ALMS IV rank near 46.33% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on ALMS should anchor more to the directional view and the expected-move geometry. As a Healthcare name, ALMS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALMS-specific events.
ALMS 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. ALMS positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALMS alongside the broader basket even when ALMS-specific fundamentals are unchanged. Short-premium structures like a covered call on ALMS carry tail risk when realized volatility exceeds the implied move; review historical ALMS earnings reactions and macro stress periods before sizing. Always rebuild the position from current ALMS chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on ALMS?
- A covered call on ALMS is the covered call strategy applied to ALMS (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 ALMS stock at $25.02 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ALMS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ALMS 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 ALMS covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 204.80%), the computed maximum profit is $648.00 per contract and the computed maximum loss is -$1,951.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ALMS covered call?
- The breakeven for the ALMS covered call priced on this page is roughly $19.52 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The ALMS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 58.71%; 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 ALMS?
- Covered calls on ALMS are an income strategy run on existing ALMS 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 ALMS implied volatility affect this covered call?
- ALMS ATM IV is at 204.80% with IV rank near 46.33%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.