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 53.90%), the computed maximum profit is $506.50 per contract and the computed maximum loss is -$4,992.50 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 roughly $49.93 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 15.45%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RDNT implied volatility affect this covered call?

RDNT ATM IV is at 53.90% with IV rank near 34.54%, 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.

RDNT Covered Call Strategy

RDNT (RadNet, Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.

RadNet, Inc., together with its subsidiaries, provides outpatient diagnostic imaging services in the United States. Its services include magnetic resonance imaging, computed tomography, positron emission tomography, nuclear medicine, mammography, ultrasound, diagnostic radiology, fluoroscopy, and other related procedures, as well as multi-modality imaging services. The company also develops and sells computerized systems for the diagnostic imaging industry, including picture archiving communications systems and related services; and develops and deploys AI suites to enhance radiologist interpretation of images in the field of mammography, as well as AI solutions for lung and prostate cancer. As of December 31, 2021, it owned and managed 347 centers in Arizona, California, Delaware, Florida, Maryland, New Jersey, and New York. The company was founded in 1981 and is headquartered in Los Angeles, California.

RDNT (RadNet, Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $4.15B, a beta of 1.43 versus the broader market, a 52-week range of 50.76-85.84, average daily share volume of 907K, 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 1.43 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 May 15, 2026, spot at $52.11, ATM IV 53.90%, IV rank 34.54%, expected move 15.45%. 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 34-day expiry.

Why this covered call structure on RDNT specifically: RDNT IV at 53.90% is mid-range versus its 1-year history, so the credit collected on a RDNT covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 15.45% (roughly $8.05 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 RDNT expiries trade a higher absolute premium for lower per-day decay. Position sizing on RDNT should anchor to the underlying notional of $52.11 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 $52.11, the first option leg uses a $55.00 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 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 RDNT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$52.11	long
Sell 1	Call	$55.00	$2.18

RDNT covered call risk and reward

Net Premium / Debit: -$4,993.50
Max Profit (per contract): $506.50
Max Loss (per contract): -$4,992.50
Breakeven(s): $49.93
Risk / Reward Ratio: 0.101

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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$4,992.50
$11.53	-77.9%	-$3,840.43
$23.05	-55.8%	-$2,688.36
$34.57	-33.7%	-$1,536.29
$46.09	-11.5%	-$384.22
$57.61	+10.6%	+$506.50
$69.13	+32.7%	+$506.50
$80.65	+54.8%	+$506.50
$92.18	+76.9%	+$506.50
$103.70	+99.0%	+$506.50

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 $44.06 on the downside to $60.16 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 34.54% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on RDNT should anchor more to the directional view and the expected-move geometry. 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 $52.11, 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 53.90%), the computed maximum profit is $506.50 per contract and the computed maximum loss is -$4,992.50 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 roughly $49.93 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 15.45%; 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 53.90% with IV rank near 34.54%, 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.