TOI Covered Call Strategy
TOI (The Oncology Institute, Inc.), in the Healthcare sector, (Medical - Care Facilities industry), listed on NASDAQ.
The Oncology Institute, Inc., an oncology company, provides medical oncology services in the United States. Its services include physician services, in-house infusion and dispensary, clinical trial services, radiation, outpatient stem cell transplants and transfusions programs, and patient support. The company also offers and manages clinical trial services, such as managing clinical trials, palliative care programs, and stem cell transplants services. It serves adult and senior cancer patients. The company operates 67 clinic locations. The Oncology Institute, Inc. was founded in 2007 and is based in Cerritos, California.
TOI (The Oncology Institute, Inc.) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $407.9M, a beta of 0.36 versus the broader market, a 52-week range of 2.015-4.88, average daily share volume of 1.8M, a public-listing history dating back to 2020, approximately 825 full-time employees. These structural characteristics shape how TOI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.36 indicates TOI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a covered call on TOI?
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 TOI snapshot
As of May 15, 2026, spot at $3.96, ATM IV 80.30%, IV rank 10.54%, expected move 23.02%. The covered call on TOI 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 TOI specifically: TOI IV at 80.30% is on the cheap side of its 1-year range, which means a premium-selling TOI covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 23.02% (roughly $0.91 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 TOI expiries trade a higher absolute premium for lower per-day decay. Position sizing on TOI should anchor to the underlying notional of $3.96 per share and to the trader's directional view on TOI stock.
TOI covered call setup
The TOI 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 TOI near $3.96, the first option leg uses a $4.16 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TOI 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 TOI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $3.96 | long |
| Sell 1 | Call | $4.16 | N/A |
TOI 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.
TOI covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on TOI. 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 TOI
Covered calls on TOI are an income strategy run on existing TOI stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
TOI thesis for this covered call
The market-implied 1-standard-deviation range for TOI extends from approximately $3.05 on the downside to $4.87 on the upside. A TOI covered call collects premium on an existing long TOI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether TOI will breach that level within the expiration window. Current TOI IV rank near 10.54% 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 TOI at 80.30%. As a Healthcare name, TOI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TOI-specific events.
TOI 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. TOI positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TOI alongside the broader basket even when TOI-specific fundamentals are unchanged. Short-premium structures like a covered call on TOI carry tail risk when realized volatility exceeds the implied move; review historical TOI earnings reactions and macro stress periods before sizing. Always rebuild the position from current TOI chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on TOI?
- A covered call on TOI is the covered call strategy applied to TOI (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 TOI stock trading near $3.96, the strikes shown on this page are snapped to the nearest listed TOI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TOI 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 TOI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 80.30%), 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 TOI covered call?
- The breakeven for the TOI 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 TOI market-implied 1-standard-deviation expected move is approximately 23.02%; 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 TOI?
- Covered calls on TOI are an income strategy run on existing TOI 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 TOI implied volatility affect this covered call?
- TOI ATM IV is at 80.30% with IV rank near 10.54%, 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.