How are OHI 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 OHI covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 20.40%), the computed maximum profit is $281.00 per contract and the computed maximum loss is -$4,618.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a OHI covered call?

The breakeven for the OHI covered call priced on this page is roughly $46.19 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 OHI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current OHI implied volatility affect this covered call?

OHI ATM IV is at 20.40% with IV rank near 36.47%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

OHI Covered Call Strategy

OHI (Omega Healthcare Investors, Inc.), in the Real Estate sector, (REIT - Healthcare Facilities industry), listed on NYSE.

Omega Healthcare Investors, Inc. functions as a Real Estate Investment Trust (REIT) primarily focused on the long-term healthcare sector. The company strategically invests in properties providing skilled nursing and assisted living services. A diverse array of healthcare operators manage these assets, predominantly utilizing a triple-net lease framework. Its portfolio is geographically distributed across all regions of the United States and also includes holdings in the United Kingdom.

OHI (Omega Healthcare Investors, Inc.) trades in the Real Estate sector, specifically REIT - Healthcare Facilities, with a market capitalization of approximately $13.72B, a trailing P/E of 15.97, a beta of 0.58 versus the broader market, a 52-week range of 39.26-52.39, average daily share volume of 2.2M, a public-listing history dating back to 1992, approximately 69 full-time employees. These structural characteristics shape how OHI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.58 indicates OHI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. OHI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on OHI?

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.

OHI snapshot

As of August 14, 2026, spot at $46.49, ATM IV 20.40%, IV rank 36.47%, expected move 5.85%. The covered call on OHI 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 OHI specifically: OHI IV at 20.40% is mid-range versus its 1-year history, so the credit collected on a OHI covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 5.85% (roughly $2.72 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 OHI expiries trade a higher absolute premium for lower per-day decay. Position sizing on OHI should anchor to the underlying notional of $46.49 per share and to the trader's directional view on OHI stock.

OHI covered call setup

The OHI 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 OHI at $46.49 on that close, the first option leg uses a $49.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OHI 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 OHI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$46.49	long
Sell 1	Call	$49.00	$0.30

OHI covered call risk and reward

Net Premium / Debit: -$4,619.00
Max Profit (per contract): $281.00
Max Loss (per contract): -$4,618.00
Breakeven(s): $46.19
Risk / Reward Ratio: 0.061

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.

OHI covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on OHI. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$4,618.00
$10.29	-77.9%	-$3,590.19
$20.57	-55.8%	-$2,562.38
$30.84	-33.7%	-$1,534.57
$41.12	-11.5%	-$506.76
$51.40	+10.6%	+$281.00
$61.68	+32.7%	+$281.00
$71.96	+54.8%	+$281.00
$82.23	+76.9%	+$281.00
$92.51	+99.0%	+$281.00

When traders use covered call on OHI

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

OHI thesis for this covered call

The market-implied 1-standard-deviation range for OHI extends from approximately $43.77 on the downside to $49.21 on the upside. A OHI covered call collects premium on an existing long OHI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether OHI will breach that level within the expiration window. Current OHI IV rank near 36.47% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on OHI should anchor more to the directional view and the expected-move geometry. As a Real Estate name, OHI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OHI-specific events.

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

Frequently asked questions

What is a covered call on OHI?: A covered call on OHI is the covered call strategy applied to OHI (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 OHI stock at $46.49 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed OHI chain strike and the premiums come straight from that session's bid/ask midpoint.
How are OHI 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 OHI covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 20.40%), the computed maximum profit is $281.00 per contract and the computed maximum loss is -$4,618.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a OHI covered call?: The breakeven for the OHI covered call priced on this page is roughly $46.19 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 OHI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.85%; 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 OHI?: Covered calls on OHI are an income strategy run on existing OHI 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 OHI implied volatility affect this covered call?: OHI ATM IV is at 20.40% with IV rank near 36.47%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.