How are HROW 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 HROW covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 51.30%), the computed maximum profit is $321.00 per contract and the computed maximum loss is -$2,978.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HROW covered call?

The breakeven for the HROW covered call priced on this page is roughly $29.79 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 HROW market-implied 1-standard-deviation expected move is approximately 14.71%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HROW implied volatility affect this covered call?

HROW ATM IV is at 51.30% with IV rank near 10.95%, 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.

HROW Covered Call Strategy

HROW (Harrow Health, Inc.), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NASDAQ.

Harrow Health, Inc. operates as an ophthalmic-focused healthcare company. The company owns ImprimisRx, an ophthalmology outsourcing and pharmaceutical compounding business; and DEXYCU for the treatment of post-operative inflammation. The company also holds equity interests in Surface Ophthalmics, Inc., a clinical-stage pharmaceutical company that focuses on development and commercialization of therapeutics for ocular surface diseases; Melt Pharmaceuticals, Inc., a clinical-stage pharmaceutical company that focused on the development and commercialization of proprietary non-intravenous, sedation, and anesthesia therapeutics for human medical procedures in hospital, outpatient, and in-office settings; and Eton Pharmaceuticals, Inc., a commercial-stage pharmaceutical company that engages in developing and commercializing drug products. Harrow Health, Inc. owns royalty rights in four clinical stage drug candidates being developed by Surface Ophthalmics, Inc. and Melt Pharmaceuticals, Inc. The company was formerly known as Imprimis Pharmaceuticals, Inc. and changed its name to Harrow Health, Inc. in December 2018. Harrow Health, Inc. was incorporated in 2006 and is headquartered in San Diego, California.

HROW (Harrow Health, Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $1.11B, a beta of 0.34 versus the broader market, a 52-week range of 24.62-54.85, average daily share volume of 826K, a public-listing history dating back to 2007, approximately 382 full-time employees. These structural characteristics shape how HROW stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.34 indicates HROW has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a covered call on HROW?

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 HROW snapshot

As of May 15, 2026, spot at $31.04, ATM IV 51.30%, IV rank 10.95%, expected move 14.71%. The covered call on HROW 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 HROW specifically: HROW IV at 51.30% is on the cheap side of its 1-year range, which means a premium-selling HROW covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 14.71% (roughly $4.57 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 HROW expiries trade a higher absolute premium for lower per-day decay. Position sizing on HROW should anchor to the underlying notional of $31.04 per share and to the trader's directional view on HROW stock.

HROW covered call setup

The HROW 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 HROW near $31.04, the first option leg uses a $33.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HROW 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 HROW shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$31.04	long
Sell 1	Call	$33.00	$1.25

HROW covered call risk and reward

Net Premium / Debit: -$2,979.00
Max Profit (per contract): $321.00
Max Loss (per contract): -$2,978.00
Breakeven(s): $29.79
Risk / Reward Ratio: 0.108

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.

HROW covered call payoff curve

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

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$2,978.00
$6.87	-77.9%	-$2,291.80
$13.73	-55.8%	-$1,605.60
$20.60	-33.6%	-$919.40
$27.46	-11.5%	-$233.20
$34.32	+10.6%	+$321.00
$41.18	+32.7%	+$321.00
$48.04	+54.8%	+$321.00
$54.91	+76.9%	+$321.00
$61.77	+99.0%	+$321.00

When traders use covered call on HROW

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

HROW thesis for this covered call

The market-implied 1-standard-deviation range for HROW extends from approximately $26.47 on the downside to $35.61 on the upside. A HROW covered call collects premium on an existing long HROW position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether HROW will breach that level within the expiration window. Current HROW IV rank near 10.95% 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 HROW at 51.30%. As a Healthcare name, HROW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HROW-specific events.

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

Frequently asked questions

What is a covered call on HROW?: A covered call on HROW is the covered call strategy applied to HROW (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 HROW stock trading near $31.04, the strikes shown on this page are snapped to the nearest listed HROW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are HROW 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 HROW covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 51.30%), the computed maximum profit is $321.00 per contract and the computed maximum loss is -$2,978.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HROW covered call?: The breakeven for the HROW covered call priced on this page is roughly $29.79 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 HROW market-implied 1-standard-deviation expected move is approximately 14.71%; 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 HROW?: Covered calls on HROW are an income strategy run on existing HROW 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 HROW implied volatility affect this covered call?: HROW ATM IV is at 51.30% with IV rank near 10.95%, 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.