STAA Covered Call Strategy
STAA (STAAR Surgical Company), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NASDAQ.
STAAR Surgical Company, along with its subsidiaries, specializes in ophthalmological solutions, focusing on the design, development, manufacturing, and commercialization of implantable lenses for vision correction, complete with the sophisticated delivery systems necessary for their implantation. A core offering is the Visian implantable Collamer lens (ICL) product line, designed to correct various visual impairments including myopia (nearsightedness), hyperopia (farsightedness), astigmatism, and presbyopia (age-related loss of near vision). Specifically, their Hyperopic ICL addresses farsightedness. Furthermore, STAAR Surgical provides preloaded silicone intraocular lenses and associated injector systems, crucial for cataract surgery. The company also sells various injector components and ancillary medical instruments and devices. Its market outreach extends to a diverse array of healthcare providers, such as ophthalmic surgeons, specialized vision and surgical centers, hospitals, governmental healthcare facilities, and distributors.
STAA (STAAR Surgical Company) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $1.46B, a beta of 1.23 versus the broader market, a 52-week range of 15.59-35.87, average daily share volume of 967K, a public-listing history dating back to 1992, approximately 1K full-time employees. These structural characteristics shape how STAA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.23 places STAA 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 STAA?
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 STAA snapshot
As of June 29, 2026, spot at $29.23, ATM IV 56.50%, IV rank 33.95%, expected move 16.20%. The covered call on STAA 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 STAA specifically: STAA IV at 56.50% is mid-range versus its 1-year history, so the credit collected on a STAA covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 16.20% (roughly $4.73 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 STAA expiries trade a higher absolute premium for lower per-day decay. Position sizing on STAA should anchor to the underlying notional of $29.23 per share and to the trader's directional view on STAA stock.
STAA covered call setup
The STAA 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 STAA near $29.23, the first option leg uses a $30.69 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STAA 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 STAA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $29.23 | long |
| Sell 1 | Call | $30.69 | N/A |
STAA 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.
STAA covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on STAA. 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 STAA
Covered calls on STAA are an income strategy run on existing STAA stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
STAA thesis for this covered call
The market-implied 1-standard-deviation range for STAA extends from approximately $24.50 on the downside to $33.96 on the upside. A STAA covered call collects premium on an existing long STAA position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether STAA will breach that level within the expiration window. Current STAA IV rank near 33.95% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on STAA should anchor more to the directional view and the expected-move geometry. As a Healthcare name, STAA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STAA-specific events.
STAA 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. STAA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move STAA alongside the broader basket even when STAA-specific fundamentals are unchanged. Short-premium structures like a covered call on STAA carry tail risk when realized volatility exceeds the implied move; review historical STAA earnings reactions and macro stress periods before sizing. Always rebuild the position from current STAA chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on STAA?
- A covered call on STAA is the covered call strategy applied to STAA (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 STAA stock trading near $29.23, the strikes shown on this page are snapped to the nearest listed STAA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are STAA 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 STAA covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 56.50%), 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 STAA covered call?
- The breakeven for the STAA 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 STAA market-implied 1-standard-deviation expected move is approximately 16.20%; 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 STAA?
- Covered calls on STAA are an income strategy run on existing STAA 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 STAA implied volatility affect this covered call?
- STAA ATM IV is at 56.50% with IV rank near 33.95%, 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.