How are AUPH 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 AUPH covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 53.10%), the computed maximum profit is $154.00 per contract and the computed maximum loss is -$1,645.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AUPH covered call?

The breakeven for the AUPH covered call priced on this page is roughly $16.46 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 AUPH market-implied 1-standard-deviation expected move is approximately 15.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AUPH implied volatility affect this covered call?

AUPH ATM IV is at 53.10% with IV rank near 22.47%, 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.

AUPH Covered Call Strategy

AUPH (Aurinia Pharmaceuticals Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Aurinia Pharmaceuticals Inc. operates as a commercial-stage biopharmaceutical company, specializing in the development and commercialization of innovative therapies. Its core mission is to address a variety of diseases for which current medical solutions are inadequate, serving patient populations across the United States and internationally. The company's flagship product is LUPKYNIS, an approved treatment designed for adult individuals suffering from active lupus nephritis. Furthermore, Aurinia maintains a strategic collaboration and licensing agreement with Otsuka Pharmaceutical Co., Ltd. The firm's main corporate office is located in Victoria, Canada.

AUPH (Aurinia Pharmaceuticals Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $2.22B, a trailing P/E of 7.65, a beta of 1.43 versus the broader market, a 52-week range of 7.285-19.25, average daily share volume of 1.3M, a public-listing history dating back to 2014, approximately 130 full-time employees. These structural characteristics shape how AUPH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.43 indicates AUPH has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 7.65 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a covered call on AUPH?

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 AUPH snapshot

As of June 29, 2026, spot at $16.81, ATM IV 53.10%, IV rank 22.47%, expected move 15.22%. The covered call on AUPH 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 AUPH specifically: AUPH IV at 53.10% is on the cheap side of its 1-year range, which means a premium-selling AUPH covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 15.22% (roughly $2.56 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 AUPH expiries trade a higher absolute premium for lower per-day decay. Position sizing on AUPH should anchor to the underlying notional of $16.81 per share and to the trader's directional view on AUPH stock.

AUPH covered call setup

The AUPH 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 AUPH near $16.81, the first option leg uses a $18.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AUPH 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 AUPH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$16.81	long
Sell 1	Call	$18.00	$0.35

AUPH covered call risk and reward

Net Premium / Debit: -$1,646.00
Max Profit (per contract): $154.00
Max Loss (per contract): -$1,645.00
Breakeven(s): $16.46
Risk / Reward Ratio: 0.094

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.

AUPH covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on AUPH. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$1,645.00
$3.73	-77.8%	-$1,273.43
$7.44	-55.7%	-$901.86
$11.16	-33.6%	-$530.30
$14.87	-11.5%	-$158.73
$18.59	+10.6%	+$154.00
$22.30	+32.7%	+$154.00
$26.02	+54.8%	+$154.00
$29.74	+76.9%	+$154.00
$33.45	+99.0%	+$154.00

When traders use covered call on AUPH

Covered calls on AUPH are an income strategy run on existing AUPH stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.

AUPH thesis for this covered call

The market-implied 1-standard-deviation range for AUPH extends from approximately $14.25 on the downside to $19.37 on the upside. A AUPH covered call collects premium on an existing long AUPH position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether AUPH will breach that level within the expiration window. Current AUPH IV rank near 22.47% 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 AUPH at 53.10%. As a Healthcare name, AUPH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AUPH-specific events.

AUPH 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. AUPH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AUPH alongside the broader basket even when AUPH-specific fundamentals are unchanged. Short-premium structures like a covered call on AUPH carry tail risk when realized volatility exceeds the implied move; review historical AUPH earnings reactions and macro stress periods before sizing. Always rebuild the position from current AUPH chain quotes before placing a trade.

Frequently asked questions

What is a covered call on AUPH?: A covered call on AUPH is the covered call strategy applied to AUPH (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 AUPH stock trading near $16.81, the strikes shown on this page are snapped to the nearest listed AUPH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AUPH 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 AUPH covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 53.10%), the computed maximum profit is $154.00 per contract and the computed maximum loss is -$1,645.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AUPH covered call?: The breakeven for the AUPH covered call priced on this page is roughly $16.46 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 AUPH market-implied 1-standard-deviation expected move is approximately 15.22%; 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 AUPH?: Covered calls on AUPH are an income strategy run on existing AUPH 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 AUPH implied volatility affect this covered call?: AUPH ATM IV is at 53.10% with IV rank near 22.47%, 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.