How are HIMS 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 HIMS covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 63.01%), the computed maximum profit is $300.50 per contract and the computed maximum loss is -$2,698.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HIMS covered call?

The breakeven for the HIMS covered call priced on this page is roughly $27.00 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The HIMS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HIMS implied volatility affect this covered call?

HIMS ATM IV is at 63.01% with IV rank near 5.16%, 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.

HIMS Covered Call Strategy

HIMS (Hims & Hers Health, Inc.), in the Healthcare sector, (Medical - Equipment & Services industry), listed on NYSE.

Hims & Hers Health, Inc. operates a comprehensive digital health platform that seamlessly links individuals with licensed medical professionals for virtual consultations and ongoing care. Through its user-friendly websites and mobile app, the company delivers a diverse portfolio of health and wellness solutions directly to consumers. This includes access to recurring prescription medications, alongside a wide selection of over-the-counter drugs, devices, cosmetics, and dietary supplements. Its core focus areas are general wellness, sexual health, skincare, and hair care. Specific non-prescription offerings span categories such as: Wellness: encompassing items like vitamin C, melatonin, biotin, and collagen protein supplements. Skincare: including products such as moisturizers, serums, and face washes.

HIMS (Hims & Hers Health, Inc.) trades in the Healthcare sector, specifically Medical - Equipment & Services, with a market capitalization of approximately $6.69B, a beta of 2.40 versus the broader market, a 52-week range of 13.74-65.299, average daily share volume of 22.0M, a public-listing history dating back to 2019, approximately 2K full-time employees. These structural characteristics shape how HIMS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.40 indicates HIMS 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 HIMS?

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.

HIMS snapshot

As of August 14, 2026, spot at $28.40, ATM IV 63.01%, IV rank 5.16%, expected move 18.06%. The covered call on HIMS below is built from the August 14, 2026 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 HIMS specifically: HIMS IV at 63.01% is on the cheap side of its 1-year range, which means a premium-selling HIMS covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 18.06% (roughly $5.13 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 HIMS expiries trade a higher absolute premium for lower per-day decay. Position sizing on HIMS should anchor to the underlying notional of $28.40 per share and to the trader's directional view on HIMS stock.

HIMS covered call setup

The HIMS covered call below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With HIMS at $28.40 on that close, the first option leg uses a $30.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HIMS 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 HIMS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$28.40	long
Sell 1	Call	$30.00	$1.41

HIMS covered call risk and reward

Net Premium / Debit: -$2,699.50
Max Profit (per contract): $300.50
Max Loss (per contract): -$2,698.50
Breakeven(s): $27.00
Risk / Reward Ratio: 0.111

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.

HIMS covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on HIMS. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$2,698.50
$6.29	-77.9%	-$2,070.67
$12.57	-55.8%	-$1,442.84
$18.84	-33.6%	-$815.01
$25.12	-11.5%	-$187.18
$31.40	+10.6%	+$300.50
$37.68	+32.7%	+$300.50
$43.96	+54.8%	+$300.50
$50.24	+76.9%	+$300.50
$56.51	+99.0%	+$300.50

When traders use covered call on HIMS

Covered calls on HIMS are an income strategy run on existing HIMS stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.

HIMS thesis for this covered call

The market-implied 1-standard-deviation range for HIMS extends from approximately $23.27 on the downside to $33.53 on the upside. A HIMS covered call collects premium on an existing long HIMS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether HIMS will breach that level within the expiration window. Current HIMS IV rank near 5.16% 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 HIMS at 63.01%. As a Healthcare name, HIMS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HIMS-specific events.

HIMS 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. HIMS positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HIMS alongside the broader basket even when HIMS-specific fundamentals are unchanged. Short-premium structures like a covered call on HIMS carry tail risk when realized volatility exceeds the implied move; review historical HIMS earnings reactions and macro stress periods before sizing. Always rebuild the position from current HIMS chain quotes before placing a trade.

Frequently asked questions

What is a covered call on HIMS?: A covered call on HIMS is the covered call strategy applied to HIMS (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 HIMS stock at $28.40 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed HIMS chain strike and the premiums come straight from that session's bid/ask midpoint.
How are HIMS 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 HIMS covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 63.01%), the computed maximum profit is $300.50 per contract and the computed maximum loss is -$2,698.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HIMS covered call?: The breakeven for the HIMS covered call priced on this page is roughly $27.00 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The HIMS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.06%; 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 HIMS?: Covered calls on HIMS are an income strategy run on existing HIMS 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 HIMS implied volatility affect this covered call?: HIMS ATM IV is at 63.01% with IV rank near 5.16%, 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.