TMCI Covered Call Strategy
TMCI (Treace Medical Concepts, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
Treace Medical Concepts, Inc., a medical technology company, designs, manufactures, and markets medical devices in the United States. The company offers Lapiplasty System, enables surgeons to correct all three dimensions of the bunion deformity, stabilize the first TMT joint, and allow return to weight-bearing in a walking boot; minimally invasive products for four bunion classes; Nanoplasty 3D Minimally Invasive Bunion Correction System delivers a reproducible 3D correction of the bunion deformity through a cosmetically appealing; and Percuplasty Percutaneous 3D Bunion Correction System that provides 3D correction of the bunion deformity through percutaneous incisions. It also provides Adductoplasty System, a system designed for the correction of metatarsus adductus deformities and osteoarthritis of the midfoot; SpeedMTP Rapid Compression Implant; SpeedPlate Implant Fixation Platform to address the fusion of larger bones of the midfoot and rearfoot; SpeedPlate Micro-Quad implant, an implant designed for stability and fit in small incision surgical approaches; and SpeedAkin Anatomic Compression Implant. In addition, the company offers The IntelliGuide patient specific instrumentation provides patient-specific, 3D-printed cut guides, and a pre-operative plan for a complete picture of the deformity and correction. Further, it provides FastGrafter Autografter Harvesting System; SpeedRelease Guided Release Instrument; TriTome Triple-Edge Release Instrument; RazorTome 7mm Precision Osteotome; LapiTome Hooked Bone Removal Osteotome; GreatRelease Rapid MTP Release Instrument; CornerChisel Release Tool; NanoRasp MIS Bone Contouring Tool; FeatherRasp Rapid Bone Contouring Instrument; and Akinator Single-cut Akin Wedge Osteotomy tool. Additionally, the company offers biologics and wedges, such as Treace Allograft Wedges; and CortiFuse Flowable Cortical Fibers.
TMCI (Treace Medical Concepts, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $289.3M, a beta of 1.41 versus the broader market, a 52-week range of 1.17-7.78, average daily share volume of 901K, a public-listing history dating back to 2021, approximately 432 full-time employees. These structural characteristics shape how TMCI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.41 indicates TMCI 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 TMCI?
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 TMCI snapshot
As of June 26, 2026, spot at $4.64, ATM IV 100.50%, IV rank 21.62%, expected move 28.81%. The covered call on TMCI 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 21-day expiry.
Why this covered call structure on TMCI specifically: TMCI IV at 100.50% is on the cheap side of its 1-year range, which means a premium-selling TMCI covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 28.81% (roughly $1.34 on the underlying). The 21-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TMCI expiries trade a higher absolute premium for lower per-day decay. Position sizing on TMCI should anchor to the underlying notional of $4.64 per share and to the trader's directional view on TMCI stock.
TMCI covered call setup
The TMCI 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 TMCI near $4.64, the first option leg uses a $4.87 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TMCI chain at a 21-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 TMCI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $4.64 | long |
| Sell 1 | Call | $4.87 | N/A |
TMCI 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.
TMCI covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on TMCI. 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 TMCI
Covered calls on TMCI are an income strategy run on existing TMCI stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
TMCI thesis for this covered call
The market-implied 1-standard-deviation range for TMCI extends from approximately $3.30 on the downside to $5.98 on the upside. A TMCI covered call collects premium on an existing long TMCI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether TMCI will breach that level within the expiration window. Current TMCI IV rank near 21.62% 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 TMCI at 100.50%. As a Healthcare name, TMCI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TMCI-specific events.
TMCI 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. TMCI positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TMCI alongside the broader basket even when TMCI-specific fundamentals are unchanged. Short-premium structures like a covered call on TMCI carry tail risk when realized volatility exceeds the implied move; review historical TMCI earnings reactions and macro stress periods before sizing. Always rebuild the position from current TMCI chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on TMCI?
- A covered call on TMCI is the covered call strategy applied to TMCI (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 TMCI stock trading near $4.64, the strikes shown on this page are snapped to the nearest listed TMCI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TMCI 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 TMCI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 100.50%), 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 TMCI covered call?
- The breakeven for the TMCI 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 TMCI market-implied 1-standard-deviation expected move is approximately 28.81%; 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 TMCI?
- Covered calls on TMCI are an income strategy run on existing TMCI 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 TMCI implied volatility affect this covered call?
- TMCI ATM IV is at 100.50% with IV rank near 21.62%, 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.