EVH Long Call Strategy
EVH (Evolent Health, Inc.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NYSE.
Evolent Health, Inc., a healthcare company, through its subsidiary, Evolent Health LLC, provides clinical and administrative solutions to payers and providers in the United States. It operates in two segments, Evolent Health Services and Clinical Solutions. The Evolent Health Services segment provides an integrated administrative and clinical platform for health plan administration and population health management. It offers financial and administrative management services, such as health plan services, risk management, analytics and reporting, and leadership and management; and Identifi, a proprietary technology system that aggregates and analyzes data, manages care workflows, and engages patients, population health performance that delivers patient-centric cost-effective care. The Clinical Solutions segment offers specialty care management services support a range of specialty care delivery stakeholders during their transition from fee-for-service to value-based care, independent of their stage of maturation and specific market dynamics in oncology and cardiology; and holistic total cost of care improvement. The company was founded in 2011 and is headquartered in Arlington, Virginia.
EVH (Evolent Health, Inc.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $464.5M, a beta of 0.84 versus the broader market, a 52-week range of 2.095-12.065, average daily share volume of 3.1M, a public-listing history dating back to 2015, approximately 5K full-time employees. These structural characteristics shape how EVH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.84 places EVH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a long call on EVH?
A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration.
Current EVH snapshot
As of May 15, 2026, spot at $3.99, ATM IV 22.40%, IV rank 0.72%, expected move 6.42%. The long call on EVH 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 245-day expiry.
Why this long call structure on EVH specifically: EVH IV at 22.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a EVH long call, with a market-implied 1-standard-deviation move of approximately 6.42% (roughly $0.26 on the underlying). The 245-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated EVH expiries trade a higher absolute premium for lower per-day decay. Position sizing on EVH should anchor to the underlying notional of $3.99 per share and to the trader's directional view on EVH stock.
EVH long call setup
The EVH long 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 EVH near $3.99, the first option leg uses a $3.99 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EVH chain at a 245-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 EVH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.99 | N/A |
EVH long 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 is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium.
EVH long call payoff curve
Modeled P&L at expiration across a range of underlying prices for the long call on EVH. 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 long call on EVH
Long calls on EVH express a bullish thesis with defined risk; traders use them ahead of EVH catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
EVH thesis for this long call
The market-implied 1-standard-deviation range for EVH extends from approximately $3.73 on the downside to $4.25 on the upside. A EVH long call expresses a directional view that the underlying closes above the strike plus premium at expiration, ideally with implied volatility holding or expanding to preserve extrinsic value through the hold period. Current EVH IV rank near 0.72% 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 EVH at 22.40%. As a Healthcare name, EVH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EVH-specific events.
EVH long call positions are structurally 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. EVH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EVH alongside the broader basket even when EVH-specific fundamentals are unchanged. Long-premium structures like a long call on EVH are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current EVH chain quotes before placing a trade.
Frequently asked questions
- What is a long call on EVH?
- A long call on EVH is the long call strategy applied to EVH (stock). The strategy is structurally bullish: A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration. With EVH stock trading near $3.99, the strikes shown on this page are snapped to the nearest listed EVH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EVH long call max profit and max loss calculated?
- Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium. For the EVH long call priced from the end-of-day chain at a 30-day expiry (ATM IV 22.40%), 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 EVH long call?
- The breakeven for the EVH long 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 EVH market-implied 1-standard-deviation expected move is approximately 6.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a long call on EVH?
- Long calls on EVH express a bullish thesis with defined risk; traders use them ahead of EVH catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
- How does current EVH implied volatility affect this long call?
- EVH ATM IV is at 22.40% with IV rank near 0.72%, 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.