CLOV Straddle Strategy
CLOV (Clover Health Investments, Corp.), in the Healthcare sector, (Medical - Healthcare Plans industry), listed on NASDAQ.
Clover Health Investments, Corp. is a U.S.-based firm specializing in Medicare Advantage insurance. The company leverages its proprietary software platform, the Clover Assistant, to provide both Preferred Provider Organization (PPO) and Health Maintenance Organization (HMO) health plans for individuals eligible for Medicare. In addition to its insurance operations, Clover Health also engages in non-insurance-related business ventures. The company was established in 2014 and its main office is located in Franklin, Tennessee.
CLOV (Clover Health Investments, Corp.) trades in the Healthcare sector, specifically Medical - Healthcare Plans, with a market capitalization of approximately $2.80B, a beta of 2.48 versus the broader market, a 52-week range of 1.58-5.49, average daily share volume of 7.4M, 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 2.48 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 straddle on CLOV?
A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.
Current CLOV snapshot
As of June 29, 2026, spot at $5.25, ATM IV 68.57%, IV rank 24.84%, expected move 19.66%. The straddle 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 32-day expiry.
Why this straddle structure on CLOV specifically: CLOV IV at 68.57% is on the cheap side of its 1-year range, which favors premium-buying structures like a CLOV straddle, with a market-implied 1-standard-deviation move of approximately 19.66% (roughly $1.03 on the underlying). The 32-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 $5.25 per share and to the trader's directional view on CLOV stock.
CLOV straddle setup
The CLOV straddle 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 $5.25, the first option leg uses a $5.25 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 32-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 1 | Call | $5.25 | N/A |
| Buy 1 | Put | $5.25 | N/A |
CLOV straddle 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
Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.
CLOV straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle 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 straddle on CLOV
Straddles on CLOV are pure-volatility plays that profit from large moves in either direction; traders typically buy CLOV straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
CLOV thesis for this straddle
The market-implied 1-standard-deviation range for CLOV extends from approximately $4.22 on the downside to $6.28 on the upside. A CLOV long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. Current CLOV IV rank near 24.84% 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 68.57%. 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 straddle positions are structurally neutral / high-volatility (long premium); 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. Always rebuild the position from current CLOV chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on CLOV?
- A straddle on CLOV is the straddle strategy applied to CLOV (stock). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. With CLOV stock trading near $5.25, 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 straddle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the CLOV straddle priced from the end-of-day chain at a 30-day expiry (ATM IV 68.57%), 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 straddle?
- The breakeven for the CLOV straddle 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 19.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on CLOV?
- Straddles on CLOV are pure-volatility plays that profit from large moves in either direction; traders typically buy CLOV straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
- How does current CLOV implied volatility affect this straddle?
- CLOV ATM IV is at 68.57% with IV rank near 24.84%, 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.