How are ODD 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 ODD covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 104.54%), the computed maximum profit is $172.50 per contract and the computed maximum loss is -$1,126.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ODD covered call?

The breakeven for the ODD covered call priced on this page is roughly $11.27 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 ODD market-implied 1-standard-deviation expected move is approximately 29.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ODD implied volatility affect this covered call?

ODD ATM IV is at 104.54% with IV rank near 74.53%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

ODD Covered Call Strategy

ODD (Oddity Tech Ltd.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.

Oddity Tech Ltd., together with its subsidiaries, operates as a consumer-tech company worldwide. The company provides beauty and wellness products utilizing its PowerMatch technology. It builds and scales digital-first brands to disrupt the offline-dominated beauty and wellness industries. The company offers products for face and complexion, eyes and brows, lips, and skin care under the IL MAKIAGE brand; and hair and skin care products under the SpoiledChild brand. The company was incorporated in 2013 and is based in Tel Aviv-Jaffa, Israel.

ODD (Oddity Tech Ltd.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $720.6M, a trailing P/E of 6.57, a beta of 2.58 versus the broader market, a 52-week range of 10.8-79.18, average daily share volume of 2.4M, a public-listing history dating back to 2023, approximately 489 full-time employees. These structural characteristics shape how ODD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.58 indicates ODD has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 6.57 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a covered call on ODD?

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 ODD snapshot

As of May 15, 2026, spot at $12.60, ATM IV 104.54%, IV rank 74.53%, expected move 29.97%. The covered call on ODD 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 28-day expiry.

Why this covered call structure on ODD specifically: ODD IV at 104.54% is rich versus its 1-year range, which favors premium-selling structures like a ODD covered call, with a market-implied 1-standard-deviation move of approximately 29.97% (roughly $3.78 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ODD expiries trade a higher absolute premium for lower per-day decay. Position sizing on ODD should anchor to the underlying notional of $12.60 per share and to the trader's directional view on ODD stock.

ODD covered call setup

The ODD 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 ODD near $12.60, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ODD chain at a 28-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 ODD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$12.60	long
Sell 1	Call	$13.00	$1.33

ODD covered call risk and reward

Net Premium / Debit: -$1,127.50
Max Profit (per contract): $172.50
Max Loss (per contract): -$1,126.50
Breakeven(s): $11.27
Risk / Reward Ratio: 0.153

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.

ODD covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on ODD. 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	-99.9%	-$1,126.50
$2.79	-77.8%	-$848.02
$5.58	-55.7%	-$569.54
$8.36	-33.6%	-$291.05
$11.15	-11.5%	-$12.57
$13.93	+10.6%	+$172.50
$16.72	+32.7%	+$172.50
$19.50	+54.8%	+$172.50
$22.29	+76.9%	+$172.50
$25.07	+99.0%	+$172.50

When traders use covered call on ODD

Covered calls on ODD are an income strategy run on existing ODD stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.

ODD thesis for this covered call

The market-implied 1-standard-deviation range for ODD extends from approximately $8.82 on the downside to $16.38 on the upside. A ODD covered call collects premium on an existing long ODD position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether ODD will breach that level within the expiration window. Current ODD IV rank near 74.53% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on ODD at 104.54%. As a Technology name, ODD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ODD-specific events.

ODD 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. ODD positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ODD alongside the broader basket even when ODD-specific fundamentals are unchanged. Short-premium structures like a covered call on ODD carry tail risk when realized volatility exceeds the implied move; review historical ODD earnings reactions and macro stress periods before sizing. Always rebuild the position from current ODD chain quotes before placing a trade.

Frequently asked questions

What is a covered call on ODD?: A covered call on ODD is the covered call strategy applied to ODD (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 ODD stock trading near $12.60, the strikes shown on this page are snapped to the nearest listed ODD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ODD 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 ODD covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 104.54%), the computed maximum profit is $172.50 per contract and the computed maximum loss is -$1,126.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ODD covered call?: The breakeven for the ODD covered call priced on this page is roughly $11.27 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 ODD market-implied 1-standard-deviation expected move is approximately 29.97%; 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 ODD?: Covered calls on ODD are an income strategy run on existing ODD 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 ODD implied volatility affect this covered call?: ODD ATM IV is at 104.54% with IV rank near 74.53%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.