UTHR Covered Call Strategy
UTHR (United Therapeutics Corporation), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
United Therapeutics Corporation, a biotechnology firm, is dedicated to discovering, developing, and bringing to market medical solutions for individuals suffering from chronic and severe, often life-threatening, illnesses. Its operations span both the United States and international markets. The company's current commercial portfolio features several key therapeutics: Remodulin, prescribed for pulmonary arterial hypertension (PAH) to lessen symptoms experienced during physical activity. Tyvaso, an inhaled form of the prostacyclin analogue treprostinil, designed to enhance exercise capacity in patients with PAH and pulmonary hypertension linked to interstitial lung disease (PH-ILD). Orenitram, a treprostinil tablet formulation, also aims to boost the exercise capabilities of PAH patients. Unituxin, a monoclonal antibody utilized in the treatment of high-risk neuroblastoma.
UTHR (United Therapeutics Corporation) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $21.72B, a trailing P/E of 16.63, a beta of 0.56 versus the broader market, a 52-week range of 302.19-609.35, average daily share volume of 511K, 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 0.56 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.
UTHR snapshot
As of August 14, 2026, spot at $500.84, ATM IV 27.70%, IV rank 1.43%, expected move 7.94%. The covered call on UTHR below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this covered call structure on UTHR specifically: UTHR IV at 27.70% 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 7.94% (roughly $39.77 on the underlying). The 35-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 $500.84 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 August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With UTHR at $500.84 on that close, the first option leg uses a $530.00 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 35-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 | $500.84 | long |
| Sell 1 | Call | $530.00 | $7.80 |
UTHR covered call risk and reward
- Net Premium / Debit
- -$49,304.00
- Max Profit (per contract)
- $3,696.00
- Max Loss (per contract)
- -$49,303.00
- Breakeven(s)
- $493.04
- Risk / Reward Ratio
- 0.075
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% | -$49,303.00 |
| $110.75 | -77.9% | -$38,229.26 |
| $221.48 | -55.8% | -$27,155.52 |
| $332.22 | -33.7% | -$16,081.78 |
| $442.96 | -11.6% | -$5,008.05 |
| $553.70 | +10.6% | +$3,696.00 |
| $664.43 | +32.7% | +$3,696.00 |
| $775.17 | +54.8% | +$3,696.00 |
| $885.91 | +76.9% | +$3,696.00 |
| $996.65 | +99.0% | +$3,696.00 |
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 $461.07 on the downside to $540.61 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 1.43% 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 27.70%. 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 at $500.84 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed UTHR chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 27.70%), the computed maximum profit is $3,696.00 per contract and the computed maximum loss is -$49,303.00 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 $493.04 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The UTHR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.94%; 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 27.70% with IV rank near 1.43%, 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.