MOH Covered Call Strategy
MOH (Molina Healthcare, Inc.), in the Healthcare sector, (Medical - Healthcare Plans industry), listed on NYSE.
Molina Healthcare, Inc. offers comprehensive managed health care services, primarily targeting economically disadvantaged families and individuals. The company provides coverage through key government initiatives such as Medicaid and Medicare programs, in addition to state health insurance marketplaces. Its operations are strategically segmented into four main divisions: Medicaid, Medicare, Marketplace, and a general "Other" category. By the close of 2021, specifically December 31st, Molina Healthcare's network extended to approximately 5.2 million members across 18 states, all of whom qualified for Medicaid, Medicare, or other government-sponsored healthcare plans. Established in 1980, the company maintains its corporate headquarters in Long Beach, California.
MOH (Molina Healthcare, Inc.) trades in the Healthcare sector, specifically Medical - Healthcare Plans, with a market capitalization of approximately $10.76B, a beta of 0.75 versus the broader market, a 52-week range of 121.06-244.89, average daily share volume of 1.2M, a public-listing history dating back to 2003, approximately 19K full-time employees. These structural characteristics shape how MOH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.75 places MOH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a covered call on MOH?
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.
MOH snapshot
As of August 14, 2026, spot at $213.25, ATM IV 38.50%, IV rank 0.00%, expected move 11.04%. The covered call on MOH 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 35-day expiry.
Why this covered call structure on MOH specifically: MOH IV at 38.50% is on the cheap side of its 1-year range, which means a premium-selling MOH covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 11.04% (roughly $23.54 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MOH expiries trade a higher absolute premium for lower per-day decay. Position sizing on MOH should anchor to the underlying notional of $213.25 per share and to the trader's directional view on MOH stock.
MOH covered call setup
The MOH 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 MOH at $213.25 on that close, the first option leg uses a $220.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MOH chain at a 35-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 MOH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $213.25 | long |
| Sell 1 | Call | $220.00 | $7.65 |
MOH covered call risk and reward
- Net Premium / Debit
- -$20,560.00
- Max Profit (per contract)
- $1,440.00
- Max Loss (per contract)
- -$20,559.00
- Breakeven(s)
- $205.60
- Risk / Reward Ratio
- 0.070
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.
MOH covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on MOH. 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% | -$20,559.00 |
| $47.16 | -77.9% | -$15,844.04 |
| $94.31 | -55.8% | -$11,129.07 |
| $141.46 | -33.7% | -$6,414.11 |
| $188.61 | -11.6% | -$1,699.14 |
| $235.76 | +10.6% | +$1,440.00 |
| $282.91 | +32.7% | +$1,440.00 |
| $330.06 | +54.8% | +$1,440.00 |
| $377.21 | +76.9% | +$1,440.00 |
| $424.36 | +99.0% | +$1,440.00 |
When traders use covered call on MOH
Covered calls on MOH are an income strategy run on existing MOH stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
MOH thesis for this covered call
The market-implied 1-standard-deviation range for MOH extends from approximately $189.71 on the downside to $236.79 on the upside. A MOH covered call collects premium on an existing long MOH position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether MOH will breach that level within the expiration window. Current MOH IV rank near 0.00% 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 MOH at 38.50%. As a Healthcare name, MOH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MOH-specific events.
MOH 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. MOH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MOH alongside the broader basket even when MOH-specific fundamentals are unchanged. Short-premium structures like a covered call on MOH carry tail risk when realized volatility exceeds the implied move; review historical MOH earnings reactions and macro stress periods before sizing. Always rebuild the position from current MOH chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on MOH?
- A covered call on MOH is the covered call strategy applied to MOH (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 MOH stock at $213.25 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed MOH chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are MOH 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 MOH covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 38.50%), the computed maximum profit is $1,440.00 per contract and the computed maximum loss is -$20,559.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MOH covered call?
- The breakeven for the MOH covered call priced on this page is roughly $205.60 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 MOH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.04%; 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 MOH?
- Covered calls on MOH are an income strategy run on existing MOH 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 MOH implied volatility affect this covered call?
- MOH ATM IV is at 38.50% with IV rank near 0.00%, 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.