MYO Covered Call Strategy
MYO (Myomo, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on AMEX.
Myomo, Inc., a wearable medical robotics company, designs, develops, and produces myoelectric orthotics for people with neuromuscular disorders in the United States. The company offers MyoPro, a myoelectric-controlled upper limb brace or orthosis product used for supporting a patient's weak or paralyzed arm to enable and improve functional activities of daily living. Its products are designed to help improve function in adults and adolescents with neuromuscular conditions due to brachial plexus injury, stroke, traumatic brain injury, spinal cord injury, and other neurological disorders. The company sells its products to orthotics and prosthetics providers, the Veterans Health Administration, and rehabilitation hospitals, as well as through distributors. Myomo, Inc. was incorporated in 2004 and is headquartered in Boston, Massachusetts.
MYO (Myomo, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $31.4M, a beta of 1.39 versus the broader market, a 52-week range of 0.605-3.685, average daily share volume of 361K, a public-listing history dating back to 2017, approximately 184 full-time employees. These structural characteristics shape how MYO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.39 indicates MYO 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 MYO?
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 MYO snapshot
As of May 15, 2026, spot at $0.92, ATM IV 23.40%, IV rank 1.24%, expected move 6.71%. The covered call on MYO 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 MYO specifically: MYO IV at 23.40% is on the cheap side of its 1-year range, which means a premium-selling MYO covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 6.71% (roughly $0.06 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 MYO expiries trade a higher absolute premium for lower per-day decay. Position sizing on MYO should anchor to the underlying notional of $0.92 per share and to the trader's directional view on MYO stock.
MYO covered call setup
The MYO 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 MYO near $0.92, the first option leg uses a $0.97 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MYO 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 MYO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $0.92 | long |
| Sell 1 | Call | $0.97 | N/A |
MYO 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.
MYO covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on MYO. 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 MYO
Covered calls on MYO are an income strategy run on existing MYO stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
MYO thesis for this covered call
The market-implied 1-standard-deviation range for MYO extends from approximately $0.86 on the downside to $0.98 on the upside. A MYO covered call collects premium on an existing long MYO position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether MYO will breach that level within the expiration window. Current MYO IV rank near 1.24% 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 MYO at 23.40%. As a Healthcare name, MYO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MYO-specific events.
MYO 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. MYO positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MYO alongside the broader basket even when MYO-specific fundamentals are unchanged. Short-premium structures like a covered call on MYO carry tail risk when realized volatility exceeds the implied move; review historical MYO earnings reactions and macro stress periods before sizing. Always rebuild the position from current MYO chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on MYO?
- A covered call on MYO is the covered call strategy applied to MYO (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 MYO stock trading near $0.92, the strikes shown on this page are snapped to the nearest listed MYO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MYO 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 MYO covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 23.40%), 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 MYO covered call?
- The breakeven for the MYO 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 MYO market-implied 1-standard-deviation expected move is approximately 6.71%; 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 MYO?
- Covered calls on MYO are an income strategy run on existing MYO 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 MYO implied volatility affect this covered call?
- MYO ATM IV is at 23.40% with IV rank near 1.24%, 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.