MRDN Covered Call Strategy
MRDN (Meridian Holdings Inc.), in the Technology sector, (Electronic Gaming & Multimedia industry), listed on NASDAQ.
Meridian Holdings, Inc. engages in offering casino, sportsbook, and competition products. Its brands include R Kings Competitions, MexPlay, and GM-AG. It operates through the Business-to-business (B2B) and Business-to-consumer (B2C) segments. The B2B segment is involved in the charges of usage of its software and royalties charged on the use of third-party gaming content. The B2C segment focuses on the charges to enter prize competitions in the United Kingdom. The company was founded by Weiting Feng and Anthony Brian Goodman on June 4, 2008 and is headquartered in Las Vegas, NV.
MRDN (Meridian Holdings Inc.) trades in the Technology sector, specifically Electronic Gaming & Multimedia, with a market capitalization of approximately $137.2M, a beta of 1.41 versus the broader market, a 52-week range of 5.796-23.76, average daily share volume of 41K, a public-listing history dating back to 2009, approximately 1K full-time employees. These structural characteristics shape how MRDN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.41 indicates MRDN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a covered call on MRDN?
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 MRDN snapshot
As of May 15, 2026, spot at $10.92, ATM IV 247.30%, expected move 70.90%. The covered call on MRDN 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 MRDN specifically: IV rank is unavailable in the current snapshot, so regime-based timing for MRDN is inferred from ATM IV at 247.30% alone, with a market-implied 1-standard-deviation move of approximately 70.90% (roughly $7.74 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 MRDN expiries trade a higher absolute premium for lower per-day decay. Position sizing on MRDN should anchor to the underlying notional of $10.92 per share and to the trader's directional view on MRDN stock.
MRDN covered call setup
The MRDN 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 MRDN near $10.92, the first option leg uses a $11.47 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MRDN 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 MRDN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $10.92 | long |
| Sell 1 | Call | $11.47 | N/A |
MRDN covered call risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
MRDN covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on MRDN. 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.
When traders use covered call on MRDN
Covered calls on MRDN are an income strategy run on existing MRDN stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
MRDN thesis for this covered call
The market-implied 1-standard-deviation range for MRDN extends from approximately $3.18 on the downside to $18.66 on the upside. A MRDN covered call collects premium on an existing long MRDN position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether MRDN will breach that level within the expiration window. As a Technology name, MRDN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MRDN-specific events.
MRDN 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. MRDN positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MRDN alongside the broader basket even when MRDN-specific fundamentals are unchanged. Short-premium structures like a covered call on MRDN carry tail risk when realized volatility exceeds the implied move; review historical MRDN earnings reactions and macro stress periods before sizing. Always rebuild the position from current MRDN chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on MRDN?
- A covered call on MRDN is the covered call strategy applied to MRDN (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 MRDN stock trading near $10.92, the strikes shown on this page are snapped to the nearest listed MRDN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MRDN 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 MRDN covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 247.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MRDN covered call?
- The breakeven for the MRDN covered call priced on this page is no defined breakeven on the modeled curve 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 MRDN market-implied 1-standard-deviation expected move is approximately 70.90%; 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 MRDN?
- Covered calls on MRDN are an income strategy run on existing MRDN 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 MRDN implied volatility affect this covered call?
- Current MRDN ATM IV is 247.30%; IV rank context is unavailable in the current snapshot.