SBRA Long Call Strategy

SBRA (Sabra Health Care REIT, Inc.), in the Real Estate sector, (REIT - Healthcare Facilities industry), listed on NASDAQ.

As of March 31, 2022, Sabra's investment portfolio included 416 real estate properties held for investment. This consists of (i) 279 Skilled Nursing/Transitional Care facilities, (ii) 59 Senior Housing communities (Senior Housing - Leased), (iii) 50 Senior Housing communities operated by third-party property managers pursuant to property management agreements (Senior Housing - Managed), (iv) 13 Behavioral Health facilities and (v) 15 Specialty Hospitals and Other facilities), one asset held for sale, one investment in a sales-type lease, 16 investments in loans receivable (consisting of (i) two mortgage loans, (ii) one construction loan and (iii) 13 other loans), seven preferred equity investments and one investment in an unconsolidated joint venture. As of March 31, 2022, Sabra's real estate properties held for investment included 41,445 beds/units, spread across the United States and Canada.

SBRA (Sabra Health Care REIT, Inc.) trades in the Real Estate sector, specifically REIT - Healthcare Facilities, with a market capitalization of approximately $5.32B, a trailing P/E of 34.06, a beta of 0.65 versus the broader market, a 52-week range of 17.08-21.11, average daily share volume of 2.4M, a public-listing history dating back to 2002, approximately 50 full-time employees. These structural characteristics shape how SBRA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.65 indicates SBRA has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SBRA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a long call on SBRA?

A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration.

Current SBRA snapshot

As of May 15, 2026, spot at $20.65, ATM IV 22.90%, IV rank 2.78%, expected move 6.57%. The long call on SBRA 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 long call structure on SBRA specifically: SBRA IV at 22.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a SBRA long call, with a market-implied 1-standard-deviation move of approximately 6.57% (roughly $1.36 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 SBRA expiries trade a higher absolute premium for lower per-day decay. Position sizing on SBRA should anchor to the underlying notional of $20.65 per share and to the trader's directional view on SBRA stock.

SBRA long call setup

The SBRA long 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 SBRA near $20.65, the first option leg uses a $20.65 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SBRA 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 SBRA shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Buy 1Call$20.65N/A

SBRA long 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 is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium.

SBRA long call payoff curve

Modeled P&L at expiration across a range of underlying prices for the long call on SBRA. 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 long call on SBRA

Long calls on SBRA express a bullish thesis with defined risk; traders use them ahead of SBRA catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.

SBRA thesis for this long call

The market-implied 1-standard-deviation range for SBRA extends from approximately $19.29 on the downside to $22.01 on the upside. A SBRA long call expresses a directional view that the underlying closes above the strike plus premium at expiration, ideally with implied volatility holding or expanding to preserve extrinsic value through the hold period. Current SBRA IV rank near 2.78% 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 SBRA at 22.90%. As a Real Estate name, SBRA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SBRA-specific events.

SBRA long call positions are structurally 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. SBRA positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SBRA alongside the broader basket even when SBRA-specific fundamentals are unchanged. Long-premium structures like a long call on SBRA are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current SBRA chain quotes before placing a trade.

Frequently asked questions

What is a long call on SBRA?
A long call on SBRA is the long call strategy applied to SBRA (stock). The strategy is structurally bullish: A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration. With SBRA stock trading near $20.65, the strikes shown on this page are snapped to the nearest listed SBRA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SBRA long call max profit and max loss calculated?
Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium. For the SBRA long call priced from the end-of-day chain at a 30-day expiry (ATM IV 22.90%), 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 SBRA long call?
The breakeven for the SBRA long 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 SBRA market-implied 1-standard-deviation expected move is approximately 6.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a long call on SBRA?
Long calls on SBRA express a bullish thesis with defined risk; traders use them ahead of SBRA catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
How does current SBRA implied volatility affect this long call?
SBRA ATM IV is at 22.90% with IV rank near 2.78%, 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.

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