IRMD Covered Call Strategy
IRMD (IRadimed Corporation), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
IRADIMED CORPORATION specializes in the engineering, production, and distribution of medical devices specifically designed for compatibility with magnetic resonance imaging (MRI) environments. The company supplies these specialized products, alongside their related accessories and support services, to both U.S. and international markets. Key offerings include the MRidium MRI-compatible intravenous (IV) infusion pump system, which comes with disposable tubing sets, and an MRI-compatible patient vital signs monitoring system. Furthermore, IRADIMED provides a range of complementary items such as non-magnetic IV poles, wireless remote displays/controls, side car pump modules, dose error reduction systems, and SpO2 monitoring solutions with sensors. Their clientele primarily consists of hospitals, acute care facilities, and outpatient imaging centers. Sales are conducted via direct field representatives, regional sales directors, clinical support specialists, and independent distributors.
IRMD (IRadimed Corporation) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $1.12B, a trailing P/E of 48.46, a beta of 0.91 versus the broader market, a 52-week range of 67.842-107.9, average daily share volume of 131K, a public-listing history dating back to 2014, approximately 166 full-time employees. These structural characteristics shape how IRMD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.91 places IRMD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 48.46 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. IRMD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on IRMD?
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.
IRMD snapshot
As of August 14, 2026, spot at $86.41, ATM IV 35.50%, IV rank 3.63%, expected move 10.18%. The covered call on IRMD 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 63-day expiry.
Why this covered call structure on IRMD specifically: IRMD IV at 35.50% is on the cheap side of its 1-year range, which means a premium-selling IRMD covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 10.18% (roughly $8.79 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated IRMD expiries trade a higher absolute premium for lower per-day decay. Position sizing on IRMD should anchor to the underlying notional of $86.41 per share and to the trader's directional view on IRMD stock.
IRMD covered call setup
The IRMD 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 IRMD at $86.41 on that close, the first option leg uses a $90.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IRMD chain at a 63-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 IRMD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $86.41 | long |
| Sell 1 | Call | $90.00 | $3.85 |
IRMD covered call risk and reward
- Net Premium / Debit
- -$8,256.00
- Max Profit (per contract)
- $744.00
- Max Loss (per contract)
- -$8,255.00
- Breakeven(s)
- $82.56
- Risk / Reward Ratio
- 0.090
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.
IRMD covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on IRMD. 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% | -$8,255.00 |
| $19.11 | -77.9% | -$6,344.54 |
| $38.22 | -55.8% | -$4,434.08 |
| $57.32 | -33.7% | -$2,523.61 |
| $76.43 | -11.6% | -$613.15 |
| $95.53 | +10.6% | +$744.00 |
| $114.64 | +32.7% | +$744.00 |
| $133.74 | +54.8% | +$744.00 |
| $152.85 | +76.9% | +$744.00 |
| $171.95 | +99.0% | +$744.00 |
When traders use covered call on IRMD
Covered calls on IRMD are an income strategy run on existing IRMD stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
IRMD thesis for this covered call
The market-implied 1-standard-deviation range for IRMD extends from approximately $77.62 on the downside to $95.20 on the upside. A IRMD covered call collects premium on an existing long IRMD position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether IRMD will breach that level within the expiration window. Current IRMD IV rank near 3.63% 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 IRMD at 35.50%. As a Healthcare name, IRMD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IRMD-specific events.
IRMD 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. IRMD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IRMD alongside the broader basket even when IRMD-specific fundamentals are unchanged. Short-premium structures like a covered call on IRMD carry tail risk when realized volatility exceeds the implied move; review historical IRMD earnings reactions and macro stress periods before sizing. Always rebuild the position from current IRMD chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on IRMD?
- A covered call on IRMD is the covered call strategy applied to IRMD (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 IRMD stock at $86.41 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed IRMD chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are IRMD 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 IRMD covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 35.50%), the computed maximum profit is $744.00 per contract and the computed maximum loss is -$8,255.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IRMD covered call?
- The breakeven for the IRMD covered call priced on this page is roughly $82.56 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 IRMD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.18%; 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 IRMD?
- Covered calls on IRMD are an income strategy run on existing IRMD 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 IRMD implied volatility affect this covered call?
- IRMD ATM IV is at 35.50% with IV rank near 3.63%, 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.