NOTV Covered Call Strategy
NOTV (Inotiv, Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.
Inotiv, Inc. provides drug discovery and development services to the pharmaceutical, chemical, and medical device industries; and sells analytical instruments to the pharmaceutical development and contract research industries. It operates through two segments, Contract Research Services and Research Products. The Contract Research Services segment offers screening and pharmacological testing, nonclinical safety testing, formulation development, regulatory compliance, and quality control testing services. This segment provides analytical method development and validation; drug metabolism, bioanalysis, and pharmacokinetics testing to identify and measure drug and metabolite concentrations in complex biological matrices; in vivo sampling services for the continuous monitoring of chemical changes in life; stability testing to ensure the integrity of various solutions used in nonclinical and clinical studies, and post-study analyses; non-clinical toxicology and pathology services; and climate-controlled archiving services for its customers' data and samples. The Research Products segment designs, develops, manufactures, and markets in vivo sampling systems and accessories, including disposables, training, and systems qualification; physiology monitoring tools; liquid chromatography and electrochemistry instruments platforms; analytical products comprising liquid chromatographic and electrochemical instruments with associated accessories; and in vivo sampling products consisting of Culex family of automated in vivo sampling and dosing instruments. The company operates in the United States, rest of North America, the Pacific Rim, Europe, and internationally.
NOTV (Inotiv, Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $10.8M, a beta of 3.83 versus the broader market, a 52-week range of 0.22-3.32, average daily share volume of 737K, a public-listing history dating back to 1997, approximately 2K full-time employees. These structural characteristics shape how NOTV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.83 indicates NOTV 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 NOTV?
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 NOTV snapshot
As of May 15, 2026, spot at $0.29, ATM IV 17.50%, IV rank 0.00%, expected move 5.02%. The covered call on NOTV 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 NOTV specifically: NOTV IV at 17.50% is on the cheap side of its 1-year range, which means a premium-selling NOTV covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 5.02% (roughly $0.01 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 NOTV expiries trade a higher absolute premium for lower per-day decay. Position sizing on NOTV should anchor to the underlying notional of $0.29 per share and to the trader's directional view on NOTV stock.
NOTV covered call setup
The NOTV 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 NOTV near $0.29, the first option leg uses a $0.30 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NOTV 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 NOTV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $0.29 | long |
| Sell 1 | Call | $0.30 | N/A |
NOTV 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.
NOTV covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on NOTV. 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 NOTV
Covered calls on NOTV are an income strategy run on existing NOTV stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
NOTV thesis for this covered call
The market-implied 1-standard-deviation range for NOTV extends from approximately $0.28 on the downside to $0.30 on the upside. A NOTV covered call collects premium on an existing long NOTV position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether NOTV will breach that level within the expiration window. Current NOTV 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 NOTV at 17.50%. As a Healthcare name, NOTV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NOTV-specific events.
NOTV 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. NOTV positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NOTV alongside the broader basket even when NOTV-specific fundamentals are unchanged. Short-premium structures like a covered call on NOTV carry tail risk when realized volatility exceeds the implied move; review historical NOTV earnings reactions and macro stress periods before sizing. Always rebuild the position from current NOTV chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on NOTV?
- A covered call on NOTV is the covered call strategy applied to NOTV (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 NOTV stock trading near $0.29, the strikes shown on this page are snapped to the nearest listed NOTV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NOTV 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 NOTV covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 17.50%), 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 NOTV covered call?
- The breakeven for the NOTV 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 NOTV market-implied 1-standard-deviation expected move is approximately 5.02%; 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 NOTV?
- Covered calls on NOTV are an income strategy run on existing NOTV 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 NOTV implied volatility affect this covered call?
- NOTV ATM IV is at 17.50% 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.