UTHR Covered Call Strategy
UTHR (United Therapeutics Corporation), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
United Therapeutics Corporation, a biotechnology company, engages in the development and commercialization of products to address the unmet medical needs of patients with chronic and life-threatening diseases in the United States and internationally. Its commercial therapies include Remodulin to treat patients with pulmonary arterial hypertension (PAH) to diminish symptoms associated with exercise; Tyvaso, an inhaled formulation of prostacyclin analogue treprostinil to enhance the exercise ability in PAH patients and pulmonary hypertension associated with interstitial lung disease (PH-ILD); Orenitram, a tablet dosage form of treprostinil to enhance the exercise capacity in PAH patients; Unituxin, a monoclonal antibody for treating high-risk neuroblastoma; and Adcirca, an oral PDE-5 inhibitor to enhance the exercise ability in PAH patients. The company also engages in developing Tyvaso DPI, a dry powder inhalation form of Tyvaso; Remunity Pump, a small, lightweight, durable pump and separate controller; RemoPro and Ralinepag for the treatment of PAH; Aurora-GT, a gene therapy product to rebuild the blood vessels in the lungs; and Tyvaso PERFECT and TETON studies, which are the studies of Tyvaso in patients with World Health Organization (WHO) Group 3 pulmonary hypertension associated with chronic obstructive pulmonary disease (PH-COPD). It has licensing and collaboration agreements with DEKA Research & Development Corp. to develop a semi-disposable system for the subcutaneous delivery of treprostinil; MannKind Corporation to develop and license treprostinil inhalation powder and the Dreamboat device; and Arena Pharmaceuticals, Inc. to develop Ralinepag. The company was incorporated in 1996 and is headquartered in Silver Spring, Maryland.
UTHR (United Therapeutics Corporation) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $24.60B, a trailing P/E of 19.58, a beta of 0.60 versus the broader market, a 52-week range of 272.12-609.35, average daily share volume of 559K, a public-listing history dating back to 1999, approximately 1K full-time employees. These structural characteristics shape how UTHR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.60 indicates UTHR 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 UTHR?
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 UTHR snapshot
As of May 15, 2026, spot at $567.93, ATM IV 32.70%, IV rank 15.85%, expected move 9.37%. The covered call on UTHR 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 UTHR specifically: UTHR IV at 32.70% is on the cheap side of its 1-year range, which means a premium-selling UTHR covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.37% (roughly $53.24 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 UTHR expiries trade a higher absolute premium for lower per-day decay. Position sizing on UTHR should anchor to the underlying notional of $567.93 per share and to the trader's directional view on UTHR stock.
UTHR covered call setup
The UTHR 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 UTHR near $567.93, the first option leg uses a $600.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UTHR 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 UTHR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $567.93 | long |
| Sell 1 | Call | $600.00 | $10.10 |
UTHR covered call risk and reward
- Net Premium / Debit
- -$55,783.00
- Max Profit (per contract)
- $4,217.00
- Max Loss (per contract)
- -$55,782.00
- Breakeven(s)
- $557.83
- Risk / Reward Ratio
- 0.076
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.
UTHR covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on UTHR. 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% | -$55,782.00 |
| $125.58 | -77.9% | -$43,224.86 |
| $251.15 | -55.8% | -$30,667.73 |
| $376.72 | -33.7% | -$18,110.59 |
| $502.30 | -11.6% | -$5,553.46 |
| $627.87 | +10.6% | +$4,217.00 |
| $753.44 | +32.7% | +$4,217.00 |
| $879.01 | +54.8% | +$4,217.00 |
| $1,004.58 | +76.9% | +$4,217.00 |
| $1,130.15 | +99.0% | +$4,217.00 |
When traders use covered call on UTHR
Covered calls on UTHR are an income strategy run on existing UTHR stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
UTHR thesis for this covered call
The market-implied 1-standard-deviation range for UTHR extends from approximately $514.69 on the downside to $621.17 on the upside. A UTHR covered call collects premium on an existing long UTHR position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether UTHR will breach that level within the expiration window. Current UTHR IV rank near 15.85% 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 UTHR at 32.70%. As a Healthcare name, UTHR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UTHR-specific events.
UTHR 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. UTHR positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UTHR alongside the broader basket even when UTHR-specific fundamentals are unchanged. Short-premium structures like a covered call on UTHR carry tail risk when realized volatility exceeds the implied move; review historical UTHR earnings reactions and macro stress periods before sizing. Always rebuild the position from current UTHR chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on UTHR?
- A covered call on UTHR is the covered call strategy applied to UTHR (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 UTHR stock trading near $567.93, the strikes shown on this page are snapped to the nearest listed UTHR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UTHR 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 UTHR covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 32.70%), the computed maximum profit is $4,217.00 per contract and the computed maximum loss is -$55,782.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UTHR covered call?
- The breakeven for the UTHR covered call priced on this page is roughly $557.83 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 UTHR market-implied 1-standard-deviation expected move is approximately 9.37%; 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 UTHR?
- Covered calls on UTHR are an income strategy run on existing UTHR 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 UTHR implied volatility affect this covered call?
- UTHR ATM IV is at 32.70% with IV rank near 15.85%, 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.