CON Covered Call Strategy
CON (Concentra Group Holdings Parent, Inc.), in the Healthcare sector, (Medical - Equipment & Services industry), listed on NYSE.
Concentra Group Holdings Parent, Inc. provides occupational health services in the United States. The company offers occupational and consumer health services, including workers' compensation injury care, urgent care, clinical testing, preventative care, and employer services, as well as wellness programs through occupational health centers and onsite clinics. It also provides Concentra Telemed, a telemedicine solution for the treatment of work-related injuries and illnesses, and employer services; pharmacy solution under the Concentra Pharmacy name; and Concentra Medical Compliance Administration, a third-party administrator that helps to manage abuse testing programs for employers with regulated or non-regulated workforces. The company was founded in 1979 and is based in Mechanicsburg, Pennsylvania. Concentra Group Holdings Parent, Inc. operates as a subsidiary of Select Medical Corporation.
CON (Concentra Group Holdings Parent, Inc.) trades in the Healthcare sector, specifically Medical - Equipment & Services, with a market capitalization of approximately $3.31B, a trailing P/E of 18.41, a beta of 0.72 versus the broader market, a 52-week range of 18.545-25.87, average daily share volume of 774K, a public-listing history dating back to 2010, approximately 9K full-time employees. These structural characteristics shape how CON stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.72 places CON roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CON pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on CON?
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 CON snapshot
As of May 15, 2026, spot at $25.95, ATM IV 36.50%, IV rank 7.05%, expected move 10.46%. The covered call on CON 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 34-day expiry.
Why this covered call structure on CON specifically: CON IV at 36.50% is on the cheap side of its 1-year range, which means a premium-selling CON covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 10.46% (roughly $2.72 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CON expiries trade a higher absolute premium for lower per-day decay. Position sizing on CON should anchor to the underlying notional of $25.95 per share and to the trader's directional view on CON stock.
CON covered call setup
The CON 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 CON near $25.95, the first option leg uses a $27.25 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CON chain at a 34-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 CON shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $25.95 | long |
| Sell 1 | Call | $27.25 | N/A |
CON 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.
CON covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CON. 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 CON
Covered calls on CON are an income strategy run on existing CON stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CON thesis for this covered call
The market-implied 1-standard-deviation range for CON extends from approximately $23.23 on the downside to $28.67 on the upside. A CON covered call collects premium on an existing long CON position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CON will breach that level within the expiration window. Current CON IV rank near 7.05% 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 CON at 36.50%. As a Healthcare name, CON options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CON-specific events.
CON 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. CON positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CON alongside the broader basket even when CON-specific fundamentals are unchanged. Short-premium structures like a covered call on CON carry tail risk when realized volatility exceeds the implied move; review historical CON earnings reactions and macro stress periods before sizing. Always rebuild the position from current CON chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CON?
- A covered call on CON is the covered call strategy applied to CON (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 CON stock trading near $25.95, the strikes shown on this page are snapped to the nearest listed CON chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CON 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 CON covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 36.50%), 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 CON covered call?
- The breakeven for the CON 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 CON 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 CON?
- Covered calls on CON are an income strategy run on existing CON 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 CON implied volatility affect this covered call?
- CON ATM IV is at 36.50% with IV rank near 7.05%, 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.