PRCT Covered Call Strategy
PRCT (PROCEPT BioRobotics Corporation), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
PROCEPT BioRobotics Corporation, a surgical robotics company, develops transformative solutions in urology. It develops, manufactures, and sells AquaBeam Robotic System, an image-guided, surgical robotic system for use in minimally-invasive urologic surgery with a focus on treating benign prostatic hyperplasia (BPH). The company also designs Aquablation therapy for males suffering from lower urinary tract symptoms due to BPH. As of December 31, 2021, it had an install base of 130 AquaBeam Robotic Systems worldwide comprising 78 in the United States. PROCEPT BioRobotics Corporation was incorporated in 2007 and is headquartered in Redwood City, California.
PRCT (PROCEPT BioRobotics Corporation) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $1.46B, a beta of 0.83 versus the broader market, a 52-week range of 19.35-66.85, average daily share volume of 1.7M, a public-listing history dating back to 2021, approximately 756 full-time employees. These structural characteristics shape how PRCT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.83 places PRCT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a covered call on PRCT?
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 PRCT snapshot
As of May 14, 2026, spot at $26.31, ATM IV 62.00%, IV rank 22.41%, expected move 17.77%. The covered call on PRCT 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 35-day expiry.
Why this covered call structure on PRCT specifically: PRCT IV at 62.00% is on the cheap side of its 1-year range, which means a premium-selling PRCT covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 17.77% (roughly $4.68 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 PRCT expiries trade a higher absolute premium for lower per-day decay. Position sizing on PRCT should anchor to the underlying notional of $26.31 per share and to the trader's directional view on PRCT stock.
PRCT covered call setup
The PRCT 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 PRCT near $26.31, the first option leg uses a $27.63 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PRCT 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 PRCT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $26.31 | long |
| Sell 1 | Call | $27.63 | N/A |
PRCT 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.
PRCT covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on PRCT. 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 PRCT
Covered calls on PRCT are an income strategy run on existing PRCT stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
PRCT thesis for this covered call
The market-implied 1-standard-deviation range for PRCT extends from approximately $21.63 on the downside to $30.99 on the upside. A PRCT covered call collects premium on an existing long PRCT position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether PRCT will breach that level within the expiration window. Current PRCT IV rank near 22.41% 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 PRCT at 62.00%. As a Healthcare name, PRCT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PRCT-specific events.
PRCT 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. PRCT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PRCT alongside the broader basket even when PRCT-specific fundamentals are unchanged. Short-premium structures like a covered call on PRCT carry tail risk when realized volatility exceeds the implied move; review historical PRCT earnings reactions and macro stress periods before sizing. Always rebuild the position from current PRCT chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on PRCT?
- A covered call on PRCT is the covered call strategy applied to PRCT (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 PRCT stock trading near $26.31, the strikes shown on this page are snapped to the nearest listed PRCT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PRCT 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 PRCT covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 62.00%), 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 PRCT covered call?
- The breakeven for the PRCT 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 PRCT market-implied 1-standard-deviation expected move is approximately 17.77%; 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 PRCT?
- Covered calls on PRCT are an income strategy run on existing PRCT 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 PRCT implied volatility affect this covered call?
- PRCT ATM IV is at 62.00% with IV rank near 22.41%, 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.