CLOV Covered Call Strategy
CLOV (Clover Health Investments, Corp.), in the Healthcare sector, (Medical - Healthcare Plans industry), listed on NASDAQ.
Clover Health Investments, Corp. operates as a medicare advantage insurer in the United States. The company through its Clover Assistant, a software platform that provides preferred provider organization and health maintenance organization health plans for medicare-eligible consumers. It also focuses on non-insurance businesses. Clover Health Investments, Corp. was incorporated in 2014 and is based in Franklin, Tennessee.
CLOV (Clover Health Investments, Corp.) trades in the Healthcare sector, specifically Medical - Healthcare Plans, with a market capitalization of approximately $1.84B, a beta of 2.45 versus the broader market, a 52-week range of 1.58-3.92, average daily share volume of 5.8M, a public-listing history dating back to 2020, approximately 570 full-time employees. These structural characteristics shape how CLOV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.45 indicates CLOV has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a covered call on CLOV?
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 CLOV snapshot
As of May 15, 2026, spot at $3.40, ATM IV 61.73%, IV rank 19.54%, expected move 17.70%. The covered call on CLOV 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 CLOV specifically: CLOV IV at 61.73% is on the cheap side of its 1-year range, which means a premium-selling CLOV covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 17.70% (roughly $0.60 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 CLOV expiries trade a higher absolute premium for lower per-day decay. Position sizing on CLOV should anchor to the underlying notional of $3.40 per share and to the trader's directional view on CLOV stock.
CLOV covered call setup
The CLOV 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 CLOV near $3.40, the first option leg uses a $3.57 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CLOV 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 CLOV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $3.40 | long |
| Sell 1 | Call | $3.57 | N/A |
CLOV covered call risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
CLOV covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CLOV. 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.
When traders use covered call on CLOV
Covered calls on CLOV are an income strategy run on existing CLOV stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CLOV thesis for this covered call
The market-implied 1-standard-deviation range for CLOV extends from approximately $2.80 on the downside to $4.00 on the upside. A CLOV covered call collects premium on an existing long CLOV position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CLOV will breach that level within the expiration window. Current CLOV IV rank near 19.54% 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 CLOV at 61.73%. As a Healthcare name, CLOV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CLOV-specific events.
CLOV 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. CLOV positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CLOV alongside the broader basket even when CLOV-specific fundamentals are unchanged. Short-premium structures like a covered call on CLOV carry tail risk when realized volatility exceeds the implied move; review historical CLOV earnings reactions and macro stress periods before sizing. Always rebuild the position from current CLOV chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CLOV?
- A covered call on CLOV is the covered call strategy applied to CLOV (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 CLOV stock trading near $3.40, the strikes shown on this page are snapped to the nearest listed CLOV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CLOV 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 CLOV covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 61.73%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CLOV covered call?
- The breakeven for the CLOV covered call priced on this page is no defined breakeven on the modeled curve 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 CLOV market-implied 1-standard-deviation expected move is approximately 17.70%; 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 CLOV?
- Covered calls on CLOV are an income strategy run on existing CLOV 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 CLOV implied volatility affect this covered call?
- CLOV ATM IV is at 61.73% with IV rank near 19.54%, 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.