UFPT Covered Call Strategy
UFPT (UFP Technologies, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
UFP Technologies, Inc. specializes in the engineering and custom fabrication of components, subassemblies, finished products, and packaging, primarily utilizing advanced foams, films, and plastics. A significant portion of its business is dedicated to the medical sector, where its single-use and single-patient devices and parts are integral to a broad spectrum of applications, including general medical devices, disposable wound care, infection control, minimally invasive surgical tools, wearable technologies, orthopedic soft goods, and protective packaging for orthopedic implants. Beyond healthcare, the company extends its expertise to the automotive, aerospace and defense, consumer, electronics, and industrial markets. Here, its engineered products and components are incorporated into diverse items such as military uniform and gear, automotive interior trim, athletic padding, sustainable protective packaging, air filtration systems, abrasive nail files, and custom protective cases and inserts. UFP Technologies markets and distributes its offerings across the United States, predominantly through a direct sales force supported by independent manufacturer representatives. The company, established in 1963, is headquartered in Newburyport, Massachusetts.
UFPT (UFP Technologies, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $2.01B, a trailing P/E of 29.23, a beta of 1.10 versus the broader market, a 52-week range of 173.86-274.93, average daily share volume of 214K, a public-listing history dating back to 1993, approximately 4K full-time employees. These structural characteristics shape how UFPT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.10 places UFPT 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 UFPT?
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 UFPT snapshot
As of June 29, 2026, spot at $263.88, ATM IV 36.80%, IV rank 35.70%, expected move 10.55%. The covered call on UFPT 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 UFPT specifically: UFPT IV at 36.80% is mid-range versus its 1-year history, so the credit collected on a UFPT covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 10.55% (roughly $27.84 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 UFPT expiries trade a higher absolute premium for lower per-day decay. Position sizing on UFPT should anchor to the underlying notional of $263.88 per share and to the trader's directional view on UFPT stock.
UFPT covered call setup
The UFPT 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 UFPT near $263.88, the first option leg uses a $280.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UFPT 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 UFPT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $263.88 | long |
| Sell 1 | Call | $280.00 | $2.37 |
UFPT covered call risk and reward
- Net Premium / Debit
- -$26,151.00
- Max Profit (per contract)
- $1,849.00
- Max Loss (per contract)
- -$26,150.00
- Breakeven(s)
- $261.51
- Risk / Reward Ratio
- 0.071
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.
UFPT covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on UFPT. 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% | -$26,150.00 |
| $58.35 | -77.9% | -$20,315.58 |
| $116.70 | -55.8% | -$14,481.16 |
| $175.04 | -33.7% | -$8,646.73 |
| $233.39 | -11.6% | -$2,812.31 |
| $291.73 | +10.6% | +$1,849.00 |
| $350.08 | +32.7% | +$1,849.00 |
| $408.42 | +54.8% | +$1,849.00 |
| $466.76 | +76.9% | +$1,849.00 |
| $525.11 | +99.0% | +$1,849.00 |
When traders use covered call on UFPT
Covered calls on UFPT are an income strategy run on existing UFPT stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
UFPT thesis for this covered call
The market-implied 1-standard-deviation range for UFPT extends from approximately $236.04 on the downside to $291.72 on the upside. A UFPT covered call collects premium on an existing long UFPT position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether UFPT will breach that level within the expiration window. Current UFPT IV rank near 35.70% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on UFPT should anchor more to the directional view and the expected-move geometry. As a Healthcare name, UFPT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UFPT-specific events.
UFPT 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. UFPT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UFPT alongside the broader basket even when UFPT-specific fundamentals are unchanged. Short-premium structures like a covered call on UFPT carry tail risk when realized volatility exceeds the implied move; review historical UFPT earnings reactions and macro stress periods before sizing. Always rebuild the position from current UFPT chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on UFPT?
- A covered call on UFPT is the covered call strategy applied to UFPT (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 UFPT stock trading near $263.88, the strikes shown on this page are snapped to the nearest listed UFPT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UFPT 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 UFPT covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 36.80%), the computed maximum profit is $1,849.00 per contract and the computed maximum loss is -$26,150.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UFPT covered call?
- The breakeven for the UFPT covered call priced on this page is roughly $261.51 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 UFPT market-implied 1-standard-deviation expected move is approximately 10.55%; 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 UFPT?
- Covered calls on UFPT are an income strategy run on existing UFPT 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 UFPT implied volatility affect this covered call?
- UFPT ATM IV is at 36.80% with IV rank near 35.70%, 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.