RDNT Covered Call Strategy
RDNT (RadNet, Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.
RadNet, Inc. operates as a prominent healthcare services company specializing in outpatient diagnostic imaging across the United States. Their comprehensive offerings span a broad spectrum of advanced imaging techniques, including magnetic resonance imaging (MRI), computed tomography (CT), positron emission tomography (PET), nuclear medicine, mammography, ultrasound, and general diagnostic radiology, along with various specialized procedures. Beyond direct patient services, the company also plays a significant role in developing and marketing specialized computerized systems for the diagnostic imaging sector, such as picture archiving communication systems (PACS) and associated support. Furthermore, RadNet is at the forefront of integrating artificial intelligence (AI) solutions, designing and deploying AI suites to augment radiologist interpretation, particularly in mammography, and extending these AI capabilities to lung and prostate cancer diagnostics. As of December 31, 2021, its operational footprint included ownership and management of 347 centers situated across seven states: Arizona, California, Delaware, Florida, Maryland, New Jersey, and New York. Established in 1981, the company maintains its headquarters in Los Angeles, California.
RDNT (RadNet, Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $4.78B, a beta of 1.39 versus the broader market, a 52-week range of 50.76-85.84, average daily share volume of 876K, a public-listing history dating back to 1997, approximately 11K full-time employees. These structural characteristics shape how RDNT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.39 indicates RDNT 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 RDNT?
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 RDNT snapshot
As of June 29, 2026, spot at $59.28, ATM IV 48.90%, IV rank 27.65%, expected move 14.02%. The covered call on RDNT 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 18-day expiry.
Why this covered call structure on RDNT specifically: RDNT IV at 48.90% is on the cheap side of its 1-year range, which means a premium-selling RDNT covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 14.02% (roughly $8.31 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RDNT expiries trade a higher absolute premium for lower per-day decay. Position sizing on RDNT should anchor to the underlying notional of $59.28 per share and to the trader's directional view on RDNT stock.
RDNT covered call setup
The RDNT 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 RDNT near $59.28, the first option leg uses a $62.24 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RDNT chain at a 18-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 RDNT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $59.28 | long |
| Sell 1 | Call | $62.24 | N/A |
RDNT 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.
RDNT covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on RDNT. 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 RDNT
Covered calls on RDNT are an income strategy run on existing RDNT stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
RDNT thesis for this covered call
The market-implied 1-standard-deviation range for RDNT extends from approximately $50.97 on the downside to $67.59 on the upside. A RDNT covered call collects premium on an existing long RDNT position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether RDNT will breach that level within the expiration window. Current RDNT IV rank near 27.65% 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 RDNT at 48.90%. As a Healthcare name, RDNT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RDNT-specific events.
RDNT 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. RDNT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RDNT alongside the broader basket even when RDNT-specific fundamentals are unchanged. Short-premium structures like a covered call on RDNT carry tail risk when realized volatility exceeds the implied move; review historical RDNT earnings reactions and macro stress periods before sizing. Always rebuild the position from current RDNT chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on RDNT?
- A covered call on RDNT is the covered call strategy applied to RDNT (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 RDNT stock trading near $59.28, the strikes shown on this page are snapped to the nearest listed RDNT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RDNT 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 RDNT covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 48.90%), 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 RDNT covered call?
- The breakeven for the RDNT 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 RDNT 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 RDNT?
- Covered calls on RDNT are an income strategy run on existing RDNT 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 RDNT implied volatility affect this covered call?
- RDNT ATM IV is at 48.90% with IV rank near 27.65%, 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.