USNA Covered Call Strategy
USNA (USANA Health Sciences, Inc.), in the Consumer Defensive sector, (Medical - Pharmaceuticals industry), listed on NYSE.
USANA Health Sciences, Inc. develops, manufactures, and sells science-based nutritional, personal care, and skincare products in the Asia Pacific, the Americas, and Europe. It operates in two segments, Core nutritional and Hiya Direct-To-Consumer. The company offers USANA nutritional optimizers, including supplements for cardiovascular health, skeletal/structural health, and digestive health; Essentials/CellSentials, such as vitamin and mineral supplements for age group beginning with children 13 months of age; and food products that include meal replacement shakes, snack bars, and other related products for healthy weight management, digestive health, and energy and hydration. It offers Celavive, a skincare regimen for various skin care types and ethnicities; and all other products comprising materials and online tools for associates to build business and marketing of products The company sells its products through retail customers, a subscription model, and direct selling, as well as online. The company was founded in 1992 and is headquartered in Salt Lake City, Utah.
USNA (USANA Health Sciences, Inc.) trades in the Consumer Defensive sector, specifically Medical - Pharmaceuticals, with a market capitalization of approximately $382.2M, a trailing P/E of 42.92, a beta of 0.77 versus the broader market, a 52-week range of 16.6-38.32, average daily share volume of 116K, a public-listing history dating back to 1994, approximately 2K full-time employees. These structural characteristics shape how USNA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.77 places USNA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 42.92 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a covered call on USNA?
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 USNA snapshot
As of June 29, 2026, spot at $21.13, ATM IV 91.40%, IV rank 15.14%, expected move 26.20%. The covered call on USNA 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 USNA specifically: USNA IV at 91.40% is on the cheap side of its 1-year range, which means a premium-selling USNA covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 26.20% (roughly $5.54 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 USNA expiries trade a higher absolute premium for lower per-day decay. Position sizing on USNA should anchor to the underlying notional of $21.13 per share and to the trader's directional view on USNA stock.
USNA covered call setup
The USNA 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 USNA near $21.13, the first option leg uses a $22.19 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed USNA 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 USNA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $21.13 | long |
| Sell 1 | Call | $22.19 | N/A |
USNA 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.
USNA covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on USNA. 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 USNA
Covered calls on USNA are an income strategy run on existing USNA stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
USNA thesis for this covered call
The market-implied 1-standard-deviation range for USNA extends from approximately $15.59 on the downside to $26.67 on the upside. A USNA covered call collects premium on an existing long USNA position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether USNA will breach that level within the expiration window. Current USNA IV rank near 15.14% 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 USNA at 91.40%. As a Consumer Defensive name, USNA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to USNA-specific events.
USNA 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. USNA positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move USNA alongside the broader basket even when USNA-specific fundamentals are unchanged. Short-premium structures like a covered call on USNA carry tail risk when realized volatility exceeds the implied move; review historical USNA earnings reactions and macro stress periods before sizing. Always rebuild the position from current USNA chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on USNA?
- A covered call on USNA is the covered call strategy applied to USNA (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 USNA stock trading near $21.13, the strikes shown on this page are snapped to the nearest listed USNA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are USNA 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 USNA covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 91.40%), 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 USNA covered call?
- The breakeven for the USNA 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 USNA market-implied 1-standard-deviation expected move is approximately 26.20%; 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 USNA?
- Covered calls on USNA are an income strategy run on existing USNA 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 USNA implied volatility affect this covered call?
- USNA ATM IV is at 91.40% with IV rank near 15.14%, 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.