MASI Covered Call Strategy
MASI (Masimo Corporation), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NASDAQ.
Masimo Corporation develops, manufactures, and markets noninvasive monitoring technologies and hospital automation solutions worldwide. The company offers masimo signal extraction technology (SET) pulse oximetry with measure-through motion and low perfusion pulse oximetry monitoring to address the primary limitations of conventional pulse oximetry. It also provides Masimo rainbow SET platform that includes rainbow SET Pulse CO-Oximetry products that noninvasively monitor hemoglobin species, including oxygen saturation, pulse rate, perfusion index, pleth variability index, and respiration rate from the pleth; noninvasively monitor hemoglobin concentration, and carboxyhemoglobin and methemoglobin; monitor arterial oxygen saturation and acoustic respiration rate; and calculates oxygen content and oxygen reserve index. It offers SedLine brain function monitoring technology to measure the brain's electrical activity by detecting EEG signals; capnography and gas monitoring products comprising external plug-in-and-measure capnography and gas analyzers, integrated modules, handheld capnograph and capnometer devices, and capnography sampling lines; O3 regional oximetry for tissue oxygen saturation measurement; and hemodynamic monitoring solutions. Its Masimo Hospital Automation platform includes Patient SafetyNet, Patient SafetyNet surveillance, Kite, UniView, Replica, UniView : 60, and MyView. It offers connectivity devices; and nasal high flow ventilation and neuromodulation solutions.
MASI (Masimo Corporation) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $9.34B, a trailing P/E of 122.06, a beta of 1.13 versus the broader market, a 52-week range of 125.94-179, average daily share volume of 1.7M, a public-listing history dating back to 2007, approximately 4K full-time employees. These structural characteristics shape how MASI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.13 places MASI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 122.06 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 MASI?
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 MASI snapshot
As of May 15, 2026, spot at $178.50, ATM IV 156.40%, IV rank 37.21%, expected move 0.21%. The covered call on MASI 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 MASI specifically: MASI IV at 156.40% is mid-range versus its 1-year history, so the credit collected on a MASI covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 0.21% (roughly $0.37 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 MASI expiries trade a higher absolute premium for lower per-day decay. Position sizing on MASI should anchor to the underlying notional of $178.50 per share and to the trader's directional view on MASI stock.
MASI covered call setup
The MASI 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 MASI near $178.50, the first option leg uses a $185.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MASI 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 MASI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $178.50 | long |
| Sell 1 | Call | $185.00 | $0.01 |
MASI covered call risk and reward
- Net Premium / Debit
- -$17,849.00
- Max Profit (per contract)
- $651.00
- Max Loss (per contract)
- -$17,848.00
- Breakeven(s)
- $178.49
- Risk / Reward Ratio
- 0.036
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.
MASI covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on MASI. 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% | -$17,848.00 |
| $39.48 | -77.9% | -$13,901.38 |
| $78.94 | -55.8% | -$9,954.75 |
| $118.41 | -33.7% | -$6,008.13 |
| $157.87 | -11.6% | -$2,061.51 |
| $197.34 | +10.6% | +$651.00 |
| $236.81 | +32.7% | +$651.00 |
| $276.27 | +54.8% | +$651.00 |
| $315.74 | +76.9% | +$651.00 |
| $355.21 | +99.0% | +$651.00 |
When traders use covered call on MASI
Covered calls on MASI are an income strategy run on existing MASI stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
MASI thesis for this covered call
The market-implied 1-standard-deviation range for MASI extends from approximately $178.13 on the downside to $178.87 on the upside. A MASI covered call collects premium on an existing long MASI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether MASI will breach that level within the expiration window. Current MASI IV rank near 37.21% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on MASI should anchor more to the directional view and the expected-move geometry. As a Healthcare name, MASI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MASI-specific events.
MASI 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. MASI positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MASI alongside the broader basket even when MASI-specific fundamentals are unchanged. Short-premium structures like a covered call on MASI carry tail risk when realized volatility exceeds the implied move; review historical MASI earnings reactions and macro stress periods before sizing. Always rebuild the position from current MASI chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on MASI?
- A covered call on MASI is the covered call strategy applied to MASI (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 MASI stock trading near $178.50, the strikes shown on this page are snapped to the nearest listed MASI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MASI 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 MASI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 156.40%), the computed maximum profit is $651.00 per contract and the computed maximum loss is -$17,848.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MASI covered call?
- The breakeven for the MASI covered call priced on this page is roughly $178.49 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 MASI market-implied 1-standard-deviation expected move is approximately 0.21%; 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 MASI?
- Covered calls on MASI are an income strategy run on existing MASI 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 MASI implied volatility affect this covered call?
- MASI ATM IV is at 156.40% with IV rank near 37.21%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.