PROF Covered Call Strategy
PROF (Profound Medical Corp.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
Profound Medical Corp., together with its subsidiaries, operates as a commercial-stage medical device company that develops magnetic resonance guided ablation procedures for treatment of prostate disease, uterine fibroids, and palliative pain treatment in Canada, Germany, the United States, and Finland. Its lead product TULSA-PRO system used for magnetic resonance imaging scanner in hospitals and treatment facilities. The company also offers Sonalleve, a therapeutic platform for the treatment of uterine fibroids and palliative pain relief associated with metastases in bone, as well as non-invasive treatment of uterine fibroids. Profound Medical Corp. is headquartered in Mississauga, Canada.
PROF (Profound Medical Corp.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $214.8M, a beta of 0.50 versus the broader market, a 52-week range of 3.76-8.95, average daily share volume of 198K, a public-listing history dating back to 2019, approximately 142 full-time employees. These structural characteristics shape how PROF stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.50 indicates PROF has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a covered call on PROF?
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 PROF snapshot
As of May 14, 2026, spot at $7.20, ATM IV 121.00%, IV rank 28.53%, expected move 34.69%. The covered call on PROF 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 PROF specifically: PROF IV at 121.00% is on the cheap side of its 1-year range, which means a premium-selling PROF covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 34.69% (roughly $2.50 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 PROF expiries trade a higher absolute premium for lower per-day decay. Position sizing on PROF should anchor to the underlying notional of $7.20 per share and to the trader's directional view on PROF stock.
PROF covered call setup
The PROF 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 PROF near $7.20, the first option leg uses a $7.56 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PROF 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 PROF shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $7.20 | long |
| Sell 1 | Call | $7.56 | N/A |
PROF 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.
PROF covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on PROF. 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 PROF
Covered calls on PROF are an income strategy run on existing PROF stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
PROF thesis for this covered call
The market-implied 1-standard-deviation range for PROF extends from approximately $4.70 on the downside to $9.70 on the upside. A PROF covered call collects premium on an existing long PROF position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether PROF will breach that level within the expiration window. Current PROF IV rank near 28.53% 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 PROF at 121.00%. As a Healthcare name, PROF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PROF-specific events.
PROF 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. PROF positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PROF alongside the broader basket even when PROF-specific fundamentals are unchanged. Short-premium structures like a covered call on PROF carry tail risk when realized volatility exceeds the implied move; review historical PROF earnings reactions and macro stress periods before sizing. Always rebuild the position from current PROF chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on PROF?
- A covered call on PROF is the covered call strategy applied to PROF (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 PROF stock trading near $7.20, the strikes shown on this page are snapped to the nearest listed PROF chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PROF 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 PROF covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 121.00%), 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 PROF covered call?
- The breakeven for the PROF 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 PROF market-implied 1-standard-deviation expected move is approximately 34.69%; 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 PROF?
- Covered calls on PROF are an income strategy run on existing PROF 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 PROF implied volatility affect this covered call?
- PROF ATM IV is at 121.00% with IV rank near 28.53%, 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.