OMDA Covered Call Strategy
OMDA (Omada Health), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NASDAQ.
Omada Health is a U.S.-based virtual-care provider offering clinically validated programs for chronic conditions like cardiometabolic disease, musculoskeletal care, and behavioral health—delivered digitally between doctor visits.
OMDA (Omada Health) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $953.6M, a beta of 1.69 versus the broader market, a 52-week range of 10.28-28.4, average daily share volume of 1.3M, a public-listing history dating back to 2025, approximately 849 full-time employees. These structural characteristics shape how OMDA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.69 indicates OMDA 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 OMDA?
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 OMDA snapshot
As of May 15, 2026, spot at $16.74, ATM IV 76.40%, IV rank 6.83%, expected move 21.90%. The covered call on OMDA 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 OMDA specifically: OMDA IV at 76.40% is on the cheap side of its 1-year range, which means a premium-selling OMDA covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 21.90% (roughly $3.67 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 OMDA expiries trade a higher absolute premium for lower per-day decay. Position sizing on OMDA should anchor to the underlying notional of $16.74 per share and to the trader's directional view on OMDA stock.
OMDA covered call setup
The OMDA 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 OMDA near $16.74, the first option leg uses a $17.58 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OMDA 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 OMDA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $16.74 | long |
| Sell 1 | Call | $17.58 | N/A |
OMDA 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.
OMDA covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on OMDA. 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 OMDA
Covered calls on OMDA are an income strategy run on existing OMDA stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
OMDA thesis for this covered call
The market-implied 1-standard-deviation range for OMDA extends from approximately $13.07 on the downside to $20.41 on the upside. A OMDA covered call collects premium on an existing long OMDA position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether OMDA will breach that level within the expiration window. Current OMDA IV rank near 6.83% 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 OMDA at 76.40%. As a Healthcare name, OMDA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OMDA-specific events.
OMDA 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. OMDA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OMDA alongside the broader basket even when OMDA-specific fundamentals are unchanged. Short-premium structures like a covered call on OMDA carry tail risk when realized volatility exceeds the implied move; review historical OMDA earnings reactions and macro stress periods before sizing. Always rebuild the position from current OMDA chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on OMDA?
- A covered call on OMDA is the covered call strategy applied to OMDA (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 OMDA stock trading near $16.74, the strikes shown on this page are snapped to the nearest listed OMDA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OMDA 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 OMDA covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 76.40%), 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 OMDA covered call?
- The breakeven for the OMDA 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 OMDA market-implied 1-standard-deviation expected move is approximately 21.90%; 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 OMDA?
- Covered calls on OMDA are an income strategy run on existing OMDA 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 OMDA implied volatility affect this covered call?
- OMDA ATM IV is at 76.40% with IV rank near 6.83%, 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.