BSX Covered Call Strategy
BSX (Boston Scientific Corporation), in the Healthcare sector, (Medical - Devices industry), listed on NYSE.
Boston Scientific Corporation develops, manufactures, and markets medical devices for use in various interventional medical specialties worldwide. It operates through three segments: MedSurg, Rhythm and Neuro, and Cardiovascular. The company offers devices to diagnose and treat gastrointestinal and pulmonary conditions; devices to treat various urological and pelvic conditions; implantable cardioverter and implantable cardiac resynchronization therapy defibrillators; pacemakers and implantable cardiac resynchronization therapy pacemakers; and remote patient management systems. It also provides medical technologies to diagnose and treat rate and rhythm disorders of the heart comprising 3-D cardiac mapping and navigation solutions, ablation catheters, diagnostic catheters, mapping catheters, intracardiac ultrasound catheters, delivery sheaths, and other accessories; spinal cord stimulator systems for the management of chronic pain; indirect decompression systems; and deep brain stimulation systems. In addition, the company offers interventional cardiology products, including drug-eluting coronary stent systems used in the treatment of coronary artery disease; percutaneous coronary interventions products to treat atherosclerosis; intravascular catheter-directed ultrasound imaging catheters, fractional flow reserve devices, and systems for use in coronary arteries and heart chambers, as well as various peripheral vessels; and structural heart therapies. Further, it provides stents, balloon catheters, wires, and atherectomy systems to treat arterial diseases; thrombectomy and acoustic pulse thrombolysis systems, wires, and stents to treat venous diseases; and peripheral embolization devices, radioactive microspheres, ablation systems, cryotherapy ablation systems, and micro and drainage catheters to treat cancer.
BSX (Boston Scientific Corporation) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $78.87B, a trailing P/E of 22.18, a beta of 0.62 versus the broader market, a 52-week range of 52.81-109.5, average daily share volume of 16.1M, a public-listing history dating back to 1992, approximately 53K full-time employees. These structural characteristics shape how BSX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.62 indicates BSX 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 BSX?
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 BSX snapshot
As of May 15, 2026, spot at $52.70, ATM IV 36.50%, IV rank 54.52%, expected move 10.46%. The covered call on BSX 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 28-day expiry.
Why this covered call structure on BSX specifically: BSX IV at 36.50% is mid-range versus its 1-year history, so the credit collected on a BSX covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 10.46% (roughly $5.51 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BSX expiries trade a higher absolute premium for lower per-day decay. Position sizing on BSX should anchor to the underlying notional of $52.70 per share and to the trader's directional view on BSX stock.
BSX covered call setup
The BSX 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 BSX near $52.70, the first option leg uses a $55.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BSX chain at a 28-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 BSX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $52.70 | long |
| Sell 1 | Call | $55.00 | $1.25 |
BSX covered call risk and reward
- Net Premium / Debit
- -$5,145.00
- Max Profit (per contract)
- $355.00
- Max Loss (per contract)
- -$5,144.00
- Breakeven(s)
- $51.45
- Risk / Reward Ratio
- 0.069
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.
BSX covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on BSX. 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% | -$5,144.00 |
| $11.66 | -77.9% | -$3,978.88 |
| $23.31 | -55.8% | -$2,813.77 |
| $34.96 | -33.7% | -$1,648.65 |
| $46.61 | -11.5% | -$483.54 |
| $58.27 | +10.6% | +$355.00 |
| $69.92 | +32.7% | +$355.00 |
| $81.57 | +54.8% | +$355.00 |
| $93.22 | +76.9% | +$355.00 |
| $104.87 | +99.0% | +$355.00 |
When traders use covered call on BSX
Covered calls on BSX are an income strategy run on existing BSX stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
BSX thesis for this covered call
The market-implied 1-standard-deviation range for BSX extends from approximately $47.19 on the downside to $58.21 on the upside. A BSX covered call collects premium on an existing long BSX position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether BSX will breach that level within the expiration window. Current BSX IV rank near 54.52% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on BSX should anchor more to the directional view and the expected-move geometry. As a Healthcare name, BSX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BSX-specific events.
BSX 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. BSX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BSX alongside the broader basket even when BSX-specific fundamentals are unchanged. Short-premium structures like a covered call on BSX carry tail risk when realized volatility exceeds the implied move; review historical BSX earnings reactions and macro stress periods before sizing. Always rebuild the position from current BSX chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on BSX?
- A covered call on BSX is the covered call strategy applied to BSX (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 BSX stock trading near $52.70, the strikes shown on this page are snapped to the nearest listed BSX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BSX 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 BSX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 36.50%), the computed maximum profit is $355.00 per contract and the computed maximum loss is -$5,144.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BSX covered call?
- The breakeven for the BSX covered call priced on this page is roughly $51.45 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 BSX market-implied 1-standard-deviation expected move is approximately 10.46%; 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 BSX?
- Covered calls on BSX are an income strategy run on existing BSX 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 BSX implied volatility affect this covered call?
- BSX ATM IV is at 36.50% with IV rank near 54.52%, 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.