OLMA Covered Call Strategy
OLMA (Olema Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Olema Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of therapies for women's cancers. Its lead product candidate is OP-1250, an estrogen receptor (ER) antagonist and a selective ER degrader, which is in Phase 1/2 clinical trial for the treatment of recurrent, locally advanced, or metastatic estrogen receptor-positive, human epidermal growth factor receptor 2-negative breast cancer. The company was formerly known as CombiThera, Inc. and changed its name to Olema Pharmaceuticals, Inc. in March 2009. Olema Pharmaceuticals, Inc. was incorporated in 2006 and is headquartered in San Francisco, California.
OLMA (Olema Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.18B, a beta of 2.06 versus the broader market, a 52-week range of 3.89-36.259, average daily share volume of 1.5M, a public-listing history dating back to 2020, approximately 96 full-time employees. These structural characteristics shape how OLMA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.06 indicates OLMA 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 OLMA?
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 OLMA snapshot
As of May 15, 2026, spot at $13.57, ATM IV 97.80%, IV rank 9.85%, expected move 28.04%. The covered call on OLMA 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 63-day expiry.
Why this covered call structure on OLMA specifically: OLMA IV at 97.80% is on the cheap side of its 1-year range, which means a premium-selling OLMA covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 28.04% (roughly $3.80 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OLMA expiries trade a higher absolute premium for lower per-day decay. Position sizing on OLMA should anchor to the underlying notional of $13.57 per share and to the trader's directional view on OLMA stock.
OLMA covered call setup
The OLMA 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 OLMA near $13.57, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OLMA chain at a 63-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 OLMA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $13.57 | long |
| Sell 1 | Call | $14.00 | $1.88 |
OLMA covered call risk and reward
- Net Premium / Debit
- -$1,169.00
- Max Profit (per contract)
- $231.00
- Max Loss (per contract)
- -$1,168.00
- Breakeven(s)
- $11.69
- Risk / Reward Ratio
- 0.198
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.
OLMA covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on OLMA. 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% | -$1,168.00 |
| $3.01 | -77.8% | -$868.07 |
| $6.01 | -55.7% | -$568.14 |
| $9.01 | -33.6% | -$268.21 |
| $12.01 | -11.5% | +$31.72 |
| $15.01 | +10.6% | +$231.00 |
| $18.01 | +32.7% | +$231.00 |
| $21.01 | +54.8% | +$231.00 |
| $24.00 | +76.9% | +$231.00 |
| $27.00 | +99.0% | +$231.00 |
When traders use covered call on OLMA
Covered calls on OLMA are an income strategy run on existing OLMA stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
OLMA thesis for this covered call
The market-implied 1-standard-deviation range for OLMA extends from approximately $9.77 on the downside to $17.37 on the upside. A OLMA covered call collects premium on an existing long OLMA position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether OLMA will breach that level within the expiration window. Current OLMA IV rank near 9.85% 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 OLMA at 97.80%. As a Healthcare name, OLMA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OLMA-specific events.
OLMA 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. OLMA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OLMA alongside the broader basket even when OLMA-specific fundamentals are unchanged. Short-premium structures like a covered call on OLMA carry tail risk when realized volatility exceeds the implied move; review historical OLMA earnings reactions and macro stress periods before sizing. Always rebuild the position from current OLMA chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on OLMA?
- A covered call on OLMA is the covered call strategy applied to OLMA (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 OLMA stock trading near $13.57, the strikes shown on this page are snapped to the nearest listed OLMA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OLMA 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 OLMA covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 97.80%), the computed maximum profit is $231.00 per contract and the computed maximum loss is -$1,168.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OLMA covered call?
- The breakeven for the OLMA covered call priced on this page is roughly $11.69 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 OLMA market-implied 1-standard-deviation expected move is approximately 28.04%; 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 OLMA?
- Covered calls on OLMA are an income strategy run on existing OLMA 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 OLMA implied volatility affect this covered call?
- OLMA ATM IV is at 97.80% with IV rank near 9.85%, 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.