LMAT Covered Call Strategy
LMAT (LeMaitre Vascular, Inc.), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NASDAQ.
Operating worldwide, LeMaitre Vascular, Inc. specializes in the development, distribution, and maintenance of medical devices and implants for treating peripheral vascular disease. Its product portfolio encompasses a range of catheters, including angioscopes, which are fiberoptic tools for internal blood vessel visualization; embolectomy catheters for removing blood clots from arteries or veins; occlusion catheters that temporarily halt blood flow; perfusion catheters for infusing blood and other fluids into the vasculature; and thrombectomy catheters, featuring a silicone balloon for extracting venous thrombi. The company also furnishes carotid shunts, designed to temporarily redirect blood flow to the brain during carotid endarterectomy surgery to clear arterial plaque. Another offering is radiopaque tape, a medical-grade adhesive applied externally to help interventionists precisely cross-reference skin locations with underlying anatomical features like vessels or lesions. Further products include valvulotomes, instruments used to cut or disrupt valves within the saphenous vein, enabling it to function as an arterial bypass to carry blood past diseased arteries to the lower leg or foot. Additionally, LeMaitre supplies vascular grafts for bypassing or replacing compromised arteries.
LMAT (LeMaitre Vascular, Inc.) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $2.19B, a trailing P/E of 34.95, a beta of 0.52 versus the broader market, a 52-week range of 79.01-118.01, average daily share volume of 275K, a public-listing history dating back to 2006, approximately 651 full-time employees. These structural characteristics shape how LMAT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.52 indicates LMAT has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. LMAT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on LMAT?
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 LMAT snapshot
As of June 29, 2026, spot at $95.70, ATM IV 28.70%, IV rank 3.93%, expected move 8.23%. The covered call on LMAT 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 81-day expiry.
Why this covered call structure on LMAT specifically: LMAT IV at 28.70% is on the cheap side of its 1-year range, which means a premium-selling LMAT covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.23% (roughly $7.87 on the underlying). The 81-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LMAT expiries trade a higher absolute premium for lower per-day decay. Position sizing on LMAT should anchor to the underlying notional of $95.70 per share and to the trader's directional view on LMAT stock.
LMAT covered call setup
The LMAT 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 LMAT near $95.70, the first option leg uses a $100.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LMAT chain at a 81-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 LMAT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $95.70 | long |
| Sell 1 | Call | $100.00 | $3.70 |
LMAT covered call risk and reward
- Net Premium / Debit
- -$9,200.00
- Max Profit (per contract)
- $800.00
- Max Loss (per contract)
- -$9,199.00
- Breakeven(s)
- $92.00
- Risk / Reward Ratio
- 0.087
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.
LMAT covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on LMAT. 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% | -$9,199.00 |
| $21.17 | -77.9% | -$7,083.13 |
| $42.33 | -55.8% | -$4,967.26 |
| $63.49 | -33.7% | -$2,851.39 |
| $84.64 | -11.6% | -$735.52 |
| $105.80 | +10.6% | +$800.00 |
| $126.96 | +32.7% | +$800.00 |
| $148.12 | +54.8% | +$800.00 |
| $169.28 | +76.9% | +$800.00 |
| $190.44 | +99.0% | +$800.00 |
When traders use covered call on LMAT
Covered calls on LMAT are an income strategy run on existing LMAT stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
LMAT thesis for this covered call
The market-implied 1-standard-deviation range for LMAT extends from approximately $87.83 on the downside to $103.57 on the upside. A LMAT covered call collects premium on an existing long LMAT position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether LMAT will breach that level within the expiration window. Current LMAT IV rank near 3.93% 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 LMAT at 28.70%. As a Healthcare name, LMAT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LMAT-specific events.
LMAT 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. LMAT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LMAT alongside the broader basket even when LMAT-specific fundamentals are unchanged. Short-premium structures like a covered call on LMAT carry tail risk when realized volatility exceeds the implied move; review historical LMAT earnings reactions and macro stress periods before sizing. Always rebuild the position from current LMAT chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on LMAT?
- A covered call on LMAT is the covered call strategy applied to LMAT (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 LMAT stock trading near $95.70, the strikes shown on this page are snapped to the nearest listed LMAT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LMAT 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 LMAT covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 28.70%), the computed maximum profit is $800.00 per contract and the computed maximum loss is -$9,199.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LMAT covered call?
- The breakeven for the LMAT covered call priced on this page is roughly $92.00 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 LMAT market-implied 1-standard-deviation expected move is approximately 8.23%; 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 LMAT?
- Covered calls on LMAT are an income strategy run on existing LMAT 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 LMAT implied volatility affect this covered call?
- LMAT ATM IV is at 28.70% with IV rank near 3.93%, 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.