How are LIVN 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 LIVN covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 32.90%), the computed maximum profit is $407.50 per contract and the computed maximum loss is -$7,091.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LIVN covered call?

The breakeven for the LIVN covered call priced on this page is roughly $70.93 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 LIVN market-implied 1-standard-deviation expected move is approximately 9.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LIVN implied volatility affect this covered call?

LIVN ATM IV is at 32.90% with IV rank near 17.35%, 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.

LIVN Covered Call Strategy

LIVN (LivaNova PLC), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.

LivaNova PLC, a medical device company, designs, develops, manufactures, and sells therapeutic solutions worldwide. It operates through three segments: Cardiopulmonary, Neuromodulation, and Advanced Circulatory Support. The Cardiopulmonary segment develops, produces, and sells cardiopulmonary products, including oxygenators, heart-lung machines, autotransfusion systems, perfusion tubing systems, cannulae, connect, and other related products. The Neuromodulation segment designs, develops, and markets VNS Therapy System, an implantable device that delivers vagus nerve stimulation (VNS) therapy for the treatment of drug-resistant epilepsy, difficult-to-treat depression, and obstructive sleep apnea. It is also involved in the development and clinical testing of the VITARIA System for treating heart failure through VNS. The Advanced Circulatory Support segment develops, produces, and sells temporary life support products, such as cardiopulmonary and respiratory support solutions.

LIVN (LivaNova PLC) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $3.98B, a trailing P/E of 36.98, a beta of 0.82 versus the broader market, a 52-week range of 41.015-72.78, average daily share volume of 916K, a public-listing history dating back to 2015, approximately 3K full-time employees. These structural characteristics shape how LIVN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.82 places LIVN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 36.98 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.

What is a covered call on LIVN?

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 LIVN snapshot

As of May 14, 2026, spot at $72.30, ATM IV 32.90%, IV rank 17.35%, expected move 9.43%. The covered call on LIVN 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 LIVN specifically: LIVN IV at 32.90% is on the cheap side of its 1-year range, which means a premium-selling LIVN covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.43% (roughly $6.82 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 LIVN expiries trade a higher absolute premium for lower per-day decay. Position sizing on LIVN should anchor to the underlying notional of $72.30 per share and to the trader's directional view on LIVN stock.

LIVN covered call setup

The LIVN 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 LIVN near $72.30, the first option leg uses a $75.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LIVN 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 LIVN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$72.30	long
Sell 1	Call	$75.00	$1.38

LIVN covered call risk and reward

Net Premium / Debit: -$7,092.50
Max Profit (per contract): $407.50
Max Loss (per contract): -$7,091.50
Breakeven(s): $70.93
Risk / Reward Ratio: 0.057

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.

LIVN covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on LIVN. 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%	-$7,091.50
$15.99	-77.9%	-$5,493.02
$31.98	-55.8%	-$3,894.54
$47.96	-33.7%	-$2,296.05
$63.95	-11.6%	-$697.57
$79.93	+10.6%	+$407.50
$95.92	+32.7%	+$407.50
$111.90	+54.8%	+$407.50
$127.89	+76.9%	+$407.50
$143.87	+99.0%	+$407.50

When traders use covered call on LIVN

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

LIVN thesis for this covered call

The market-implied 1-standard-deviation range for LIVN extends from approximately $65.48 on the downside to $79.12 on the upside. A LIVN covered call collects premium on an existing long LIVN position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether LIVN will breach that level within the expiration window. Current LIVN IV rank near 17.35% 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 LIVN at 32.90%. As a Healthcare name, LIVN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LIVN-specific events.

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

Frequently asked questions

What is a covered call on LIVN?: A covered call on LIVN is the covered call strategy applied to LIVN (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 LIVN stock trading near $72.30, the strikes shown on this page are snapped to the nearest listed LIVN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are LIVN 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 LIVN covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 32.90%), the computed maximum profit is $407.50 per contract and the computed maximum loss is -$7,091.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LIVN covered call?: The breakeven for the LIVN covered call priced on this page is roughly $70.93 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 LIVN market-implied 1-standard-deviation expected move is approximately 9.43%; 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 LIVN?: Covered calls on LIVN are an income strategy run on existing LIVN 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 LIVN implied volatility affect this covered call?: LIVN ATM IV is at 32.90% with IV rank near 17.35%, 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.