LNTH Covered Call Strategy
LNTH (Lantheus Holdings, Inc.), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NASDAQ.
Lantheus Holdings, Inc. develops, manufactures, and commercializes diagnostic and therapeutic products that assist clinicians in the diagnosis and treatment of heart, cancer, and other diseases worldwide. It provides DEFINITY, a microbubble ultrasound enhancing agent used in ultrasound exams of the heart; TechneLite, a technetium generator for nuclear medicine; Xenon-133 to assess pulmonary function; Neurolite to identify the area within the brain where blood flow has been blocked or reduced due to stroke; Cardiolite, an injectable Tc-99m-labeled imaging agent; Thallium-201 to detect cardiovascular disease; and Gallium-67 to detect various infections and cancerous tumors. The company also offers AZEDRA, a radiotherapeutic to treat adult and pediatric patients; Automated Bone Scan Index that calculates the disease burden of prostate cancer by quantifying the hotspots on bone scans; and Cobalt (Co 57), a non-pharmaceutical radiochemical; RELISTOR for opioid-induced constipation; and PYLARIFY for visualization of lymph nodes, bone, and soft tissue metastases to determine the presence or absence of recurrent and/or metastatic prostate cancer. It also develops flurpiridaz F 18 to assess blood flow to the heart; 1095, a PSMA-targeted iodine-131 labeled small molecule; LMI 1195 for neuroblastoma tumors in pediatric and adults; PYLARIFY AI, an AI-based medical device software to perform standardized quantitative assessment of PSMA PET/CT images in prostate cancer; and leronlimab, an investigational humanized monoclonal antibody. The company serves radio pharmacies, distributors, integrated delivery networks, hospitals, clinics, and group practices. It has strategic partnerships with NanoMab Technology Limited; Bausch Health Companies, Inc.; GE Healthcare Limited; Curium; Bayer AG; CytoDyn Inc.; ROTOP; FUJIFILM; Regeneron Pharmaceuticals, Inc.; and POINT Biopharma US Inc.
LNTH (Lantheus Holdings, Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $6.28B, a trailing P/E of 22.38, a beta of -0.08 versus the broader market, a 52-week range of 47.25-98.27, average daily share volume of 974K, a public-listing history dating back to 2015, approximately 808 full-time employees. These structural characteristics shape how LNTH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.08 indicates LNTH 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 LNTH?
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 LNTH snapshot
As of May 14, 2026, spot at $95.98, ATM IV 33.30%, IV rank 1.02%, expected move 9.55%. The covered call on LNTH 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 63-day expiry.
Why this covered call structure on LNTH specifically: LNTH IV at 33.30% is on the cheap side of its 1-year range, which means a premium-selling LNTH covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.55% (roughly $9.16 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 LNTH expiries trade a higher absolute premium for lower per-day decay. Position sizing on LNTH should anchor to the underlying notional of $95.98 per share and to the trader's directional view on LNTH stock.
LNTH covered call setup
The LNTH 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 LNTH near $95.98, 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 LNTH 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 LNTH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $95.98 | long |
| Sell 1 | Call | $100.00 | $4.05 |
LNTH covered call risk and reward
- Net Premium / Debit
- -$9,193.00
- Max Profit (per contract)
- $807.00
- Max Loss (per contract)
- -$9,192.00
- Breakeven(s)
- $91.93
- Risk / Reward Ratio
- 0.088
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.
LNTH covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on LNTH. 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% | -$9,192.00 |
| $21.23 | -77.9% | -$7,069.94 |
| $42.45 | -55.8% | -$4,947.88 |
| $63.67 | -33.7% | -$2,825.82 |
| $84.89 | -11.6% | -$703.76 |
| $106.11 | +10.6% | +$807.00 |
| $127.33 | +32.7% | +$807.00 |
| $148.55 | +54.8% | +$807.00 |
| $169.77 | +76.9% | +$807.00 |
| $191.00 | +99.0% | +$807.00 |
When traders use covered call on LNTH
Covered calls on LNTH are an income strategy run on existing LNTH stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
LNTH thesis for this covered call
The market-implied 1-standard-deviation range for LNTH extends from approximately $86.82 on the downside to $105.14 on the upside. A LNTH covered call collects premium on an existing long LNTH position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether LNTH will breach that level within the expiration window. Current LNTH IV rank near 1.02% 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 LNTH at 33.30%. As a Healthcare name, LNTH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LNTH-specific events.
LNTH 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. LNTH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LNTH alongside the broader basket even when LNTH-specific fundamentals are unchanged. Short-premium structures like a covered call on LNTH carry tail risk when realized volatility exceeds the implied move; review historical LNTH earnings reactions and macro stress periods before sizing. Always rebuild the position from current LNTH chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on LNTH?
- A covered call on LNTH is the covered call strategy applied to LNTH (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 LNTH stock trading near $95.98, the strikes shown on this page are snapped to the nearest listed LNTH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LNTH 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 LNTH covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 33.30%), the computed maximum profit is $807.00 per contract and the computed maximum loss is -$9,192.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LNTH covered call?
- The breakeven for the LNTH covered call priced on this page is roughly $91.93 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 LNTH market-implied 1-standard-deviation expected move is approximately 9.55%; 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 LNTH?
- Covered calls on LNTH are an income strategy run on existing LNTH 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 LNTH implied volatility affect this covered call?
- LNTH ATM IV is at 33.30% with IV rank near 1.02%, 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.