Best Options Strategy for TEM
Looking for the best options strategy for Tempus AI (TEM)? There is no single answer — the right play depends on your outlook, your risk tolerance and current implied volatility. Below, our free engine shows the highest-scoring defined-risk strategy on the live TEM option chain right now, and a simple map from your view on TEM to the strategy that fits it. Model any of them in the calculator before you trade.
About TEM
Tempus AI (TEM) is a major company in AI-driven precision medicine and diagnostics. Options traders on TEM tend to watch AI and healthcare sentiment, data and diagnostics revenue growth and clinical partnerships, since these can drive large moves in the share price.
TEM for options traders
Tempus AI sits at the intersection of two crowded narratives — artificial intelligence and precision medicine — which is exactly why its implied volatility tends to run hot. The company builds AI-driven diagnostics off a large clinical and molecular data library, so its valuation leans on future growth expectations rather than settled earnings, and that uncertainty gets priced straight into the options. The catalysts are name-specific rather than purely macro: swings in broad AI and healthcare sentiment, the pace of data-licensing and diagnostics revenue growth, and headlines around new clinical or pharma partnerships. Any of those can reprice the stock quickly. Options activity is reasonably active for a younger healthcare-tech name, with the tightest markets near at-the-money strikes in the front expirations and noticeably wider spreads further out.
Because that elevated IV inflates premiums, many traders lean toward selling it when the chart is quiet — cash-secured puts, covered calls, iron condors, or short strangles to harvest theta while the stock consolidates between catalysts. Around earnings or an anticipated partnership headline, directional and event traders often prefer long calls, debit spreads, or straddles and strangles to capture a large move with risk defined up front. The caveat that matters most on this specific name is gap risk: sentiment-driven biotech and AI stories can jump hard on news that breaks outside regular hours, so a short-premium position can blow through its strike before it can be adjusted. Defined-risk structures and disciplined sizing tend to matter far more here than on a slow, stable blue chip.
Today's top-scoring strategy for TEM
Our engine ranks defined-risk strategies on the live TEM chain by probability of profit and risk/reward, then surfaces the best-scoring one. It is an educational illustration, not advice.
| Action | Qty | Type | Strike | Premium |
|---|---|---|---|---|
| Buy | 1× | CALL | $95 | $9.14 |
| Sell | 2× | CALL | $100 | $6.44 |
| Buy | 1× | CALL | $105 | $4.37 |
Simulation
Forward simulation of 6,000 lognormal price paths to expiration — not a historical backtest.
Strategy analysis
Greeks vs price
Price × volatility (today)
| −30% | −15% | IV | +15% | +30% | |
|---|---|---|---|---|---|
| $125 | −$49 | −$41 | −$37 | −$34 | −$33 |
| $120 | −$37 | −$30 | −$27 | −$26 | −$27 |
| $115 | −$19 | −$16 | −$17 | −$19 | −$22 |
| $110 | $2 | −$3 | −$8 | −$13 | −$17 |
| $105 | $20 | $8 | −$1 | −$9 | −$14 |
| $100 | $26 | $11 | $0 | −$8 | −$14 |
| $95 | $16 | $4 | −$4 | −$11 | −$17 |
| $90 | −$8 | −$11 | −$15 | −$19 | −$22 |
| $85 | −$33 | −$29 | −$28 | −$29 | −$30 |
| $80 | −$51 | −$45 | −$41 | −$39 | −$38 |
| $75 | −$60 | −$56 | −$52 | −$49 | −$47 |
Illustrative example at TEM's latest available price, computed with the same engine as the tool. Live option fills and the real IV skew refresh during US market hours.
Implied volatility
TEM typically trades with elevated implied volatility, so its options carry richer premiums. Implied volatility drives option prices, so it is worth checking the live chain before you trade.
TEM insider trading activity (SEC Form 4)
Open-market insider transactions at TEM over roughly the last six months, from SEC Form 4 filings. Open-market buys are the rarer, more telling signal — routine selling under pre-arranged plans is common, so read a net-selling figure with that in mind.
| Insider | Action | Shares | Value | Date |
|---|---|---|---|---|
| Schoenherr Thomas Edward | Buy | 2,694 | $189K | 2026-08-21 |
| Fukushima Ryan | Sell | 14,286 | $1.0M | 2026-08-21 |
| Fukushima Ryan | Sell | 20,000 | $1.0M | 2026-08-07 |
| Fukushima Ryan | Sell | 2,562 | $120K | 2026-08-03 |
| Fukushima Ryan | Sell | 15,856 | $738K | 2026-08-03 |
| Fukushima Ryan | Sell | 3,100 | $141K | 2026-08-03 |
Source: SEC Form 4 filings via Finnhub. Open-market purchases (P) and sales (S) only — grants, option exercises, gifts and tax withholding are excluded. Informational context, not investment advice.
Earnings & IV crush
TEM's next earnings report is due around November 3, 2026. Options that expire after it price in a binary move, so their implied volatility is elevated and usually collapses right after the announcement — an "IV crush". If your expiration falls before this date, the trade sidesteps the event.
Key figures
- Market cap
- $12.8B
- Beta (vs market)
- 3.58
- 52-week range
- $40.77–$104.32
- Short interest
- 29.9% of float · 6.1 days to cover
With 29.9% of TEM's float sold short, squeeze and gap risk are elevated — one reason its options can stay expensive.
How to choose an options strategy for TEM
Start with your outlook on TEM, then match it to a defined-risk structure. Here are the most common choices and when each makes sense:
Bullish
Buy a call for leverage with capped risk, or a bull call spread to lower the cost and breakeven when you have a target price.
Long Call → Bull Call Spread →Bearish
Buy a put to profit from a decline with defined risk, or a bear put spread to cheapen the trade when you expect a measured move down.
Long Put → Bear Put Spread →Neutral
Sell an iron condor to collect premium while TEM stays between two strikes, or write a covered call against shares you already own.
Iron Condor → Covered Call →⧉ Embed this free calculator on your site →
How we pick the best strategy
For each ticker we pull the live option chain, build every supported strategy around the at-the-money strikes, and score them on probability of profit, risk/reward and capital efficiency — favouring defined-risk structures where the maximum loss is known up front. Methodology →
Open TEM in the free calculator →
Frequently asked questions
What is the best options strategy for TEM?
It depends on your outlook. Bullish traders often use a long call or bull call spread on TEM; bearish traders a long put or bear put spread; neutral traders an iron condor or covered call. Our live scan above shows the current highest-scoring defined-risk play.
Are TEM options liquid enough to trade?
Tempus AI (TEM) is among the most actively-traded US options, which usually means tight bid/ask spreads and plenty of strikes and expirations — though you should always check the open interest and spread on the exact contract.
How much money do I need to trade TEM options?
Buying a single TEM call or put can cost as little as the premium (often one to a few hundred dollars), while income strategies like a cash-secured put need enough capital to buy 100 shares if assigned.
Is this financial advice?
No. Everything here is educational and uses delayed, third-party data. It is not a recommendation to trade TEM or any security. Do your own research.
What does Tempus AI do?
Tempus AI (TEM) operates in the Health Information Services industry. The "About Tempus AI" section above gives a fuller picture of what the company does and how it earns money.
Does Tempus AI pay a dividend?
We don't show a confirmed dividend yield for Tempus AI here, so treat it as uncertain: before writing calls, check its current dividend and ex-dividend date with your broker — an approaching ex-dividend date can trigger early assignment on in-the-money short calls.
When does Tempus AI next report earnings?
Tempus AI's next earnings are expected around November 3, 2026. Implied volatility usually climbs into the report and drops sharply afterwards (IV crush) — important for any options position held over the date.
Tickers related to TEM
Comparing TEM with similar names can help you choose the best options strategy:
Company information
- Headquarters
- 600 West Chicago Avenue, Suite 510, Chicago, IL, 60654, United States
- Industry
- Health Information Services
- Employees
- 3,800
- CEO
- Mr. Eric P. Lefkofsky J.D.
- Phone
- 800 976 5448
- Website
- www.tempus.com
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