OSIS Covered Call Strategy
OSIS (OSI Systems, Inc.), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NASDAQ.
OSI Systems, Inc. designs and manufactures electronic systems and components worldwide. It operates in three segments: Security, Healthcare, and Optoelectronics and Manufacturing. The Security segment offers baggage and parcel inspection, cargo and vehicle inspection, hold baggage and people screening, radiation detection, and explosive and narcotics trace detection systems under the Rapiscan Systems, AS&E, and Gatekeeper names. It also provides site design, installation, training, and technical support services; and security screening solutions under the S2 name. The Healthcare segment offers patient monitoring and diagnostic cardiology systems, and related supplies and accessories under the Spacelabs name for use in critical care, emergency, and perioperative areas within hospitals, physicians' offices, medical clinics, and ambulatory surgery centers. The Optoelectronics and Manufacturing segment provides optoelectronic devices under the OSI Optoelectronics, OSI LaserDiode, OSI Laserscan, Semicoa, and Advanced Photonix names for the aerospace and defense, avionics, medical imaging and diagnostics, biochemistry analysis, pharmaceutical, nanotechnology, telecommunications, construction, and homeland security markets.
OSIS (OSI Systems, Inc.) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $3.60B, a trailing P/E of 23.65, a beta of 1.31 versus the broader market, a 52-week range of 204-311.72, average daily share volume of 296K, a public-listing history dating back to 1997, approximately 7K full-time employees. These structural characteristics shape how OSIS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.31 indicates OSIS 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 OSIS?
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 OSIS snapshot
As of May 15, 2026, spot at $206.47, ATM IV 48.90%, IV rank 53.49%, expected move 14.02%. The covered call on OSIS 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 OSIS specifically: OSIS IV at 48.90% is mid-range versus its 1-year history, so the credit collected on a OSIS covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 14.02% (roughly $28.95 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 OSIS expiries trade a higher absolute premium for lower per-day decay. Position sizing on OSIS should anchor to the underlying notional of $206.47 per share and to the trader's directional view on OSIS stock.
OSIS covered call setup
The OSIS 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 OSIS near $206.47, the first option leg uses a $220.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OSIS 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 OSIS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $206.47 | long |
| Sell 1 | Call | $220.00 | $7.35 |
OSIS covered call risk and reward
- Net Premium / Debit
- -$19,912.00
- Max Profit (per contract)
- $2,088.00
- Max Loss (per contract)
- -$19,911.00
- Breakeven(s)
- $199.12
- Risk / Reward Ratio
- 0.105
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.
OSIS covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on OSIS. 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 | -100.0% | -$19,911.00 |
| $45.66 | -77.9% | -$15,345.94 |
| $91.31 | -55.8% | -$10,780.89 |
| $136.96 | -33.7% | -$6,215.83 |
| $182.61 | -11.6% | -$1,650.78 |
| $228.26 | +10.6% | +$2,088.00 |
| $273.91 | +32.7% | +$2,088.00 |
| $319.56 | +54.8% | +$2,088.00 |
| $365.21 | +76.9% | +$2,088.00 |
| $410.86 | +99.0% | +$2,088.00 |
When traders use covered call on OSIS
Covered calls on OSIS are an income strategy run on existing OSIS stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
OSIS thesis for this covered call
The market-implied 1-standard-deviation range for OSIS extends from approximately $177.52 on the downside to $235.42 on the upside. A OSIS covered call collects premium on an existing long OSIS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether OSIS will breach that level within the expiration window. Current OSIS IV rank near 53.49% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on OSIS should anchor more to the directional view and the expected-move geometry. As a Technology name, OSIS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OSIS-specific events.
OSIS 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. OSIS positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OSIS alongside the broader basket even when OSIS-specific fundamentals are unchanged. Short-premium structures like a covered call on OSIS carry tail risk when realized volatility exceeds the implied move; review historical OSIS earnings reactions and macro stress periods before sizing. Always rebuild the position from current OSIS chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on OSIS?
- A covered call on OSIS is the covered call strategy applied to OSIS (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 OSIS stock trading near $206.47, the strikes shown on this page are snapped to the nearest listed OSIS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OSIS 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 OSIS covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 48.90%), the computed maximum profit is $2,088.00 per contract and the computed maximum loss is -$19,911.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OSIS covered call?
- The breakeven for the OSIS covered call priced on this page is roughly $199.12 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 OSIS market-implied 1-standard-deviation expected move is approximately 14.02%; 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 OSIS?
- Covered calls on OSIS are an income strategy run on existing OSIS 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 OSIS implied volatility affect this covered call?
- OSIS ATM IV is at 48.90% with IV rank near 53.49%, 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.