How are AXSM 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 AXSM covered call priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 54.10%), the computed maximum profit is $1,435.00 per contract and the computed maximum loss is -$13,564.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AXSM covered call?

The breakeven for the AXSM covered call priced on this page is roughly $135.65 at expiration, derived from the November 13, 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 AXSM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AXSM implied volatility affect this covered call?

AXSM ATM IV is at 54.10% with IV rank near 34.27%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

AXSM Covered Call Strategy

AXSM (Axsome Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Axsome Therapeutics, Inc. is a biopharmaceutical company dedicated to discovering and advancing innovative treatments for a range of central nervous system (CNS) disorders within the United States. Its robust product pipeline features several promising candidates, including: AXS-05, an investigational therapy currently being developed for major depressive disorder and treatment-resistant depression. This compound is also in Phase III clinical evaluation for Alzheimer's disease agitation and has successfully finished Phase II trials investigating its use for smoking cessation. AXS-07, a novel, orally administered, rapidly-acting investigational medicine that employs multiple mechanisms of action. It has concluded two Phase III studies for the acute treatment of migraine attacks. AXS-12, a selective and potent norepinephrine reuptake inhibitor, which is presently undergoing a Phase III trial for narcolepsy.

AXSM (Axsome Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $7.45B, a beta of 0.60 versus the broader market, a 52-week range of 123-260.19, average daily share volume of 817K, a public-listing history dating back to 2015, approximately 1K full-time employees. These structural characteristics shape how AXSM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.60 indicates AXSM 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 AXSM?

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.

AXSM snapshot

As of November 13, 2026, spot at $141.30, ATM IV 54.10%, IV rank 34.27%, expected move 15.51%. The covered call on AXSM below is built from the November 13, 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 AXSM specifically: AXSM IV at 54.10% is mid-range versus its 1-year history, so the credit collected on a AXSM covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 15.51% (roughly $21.92 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 AXSM expiries trade a higher absolute premium for lower per-day decay. Position sizing on AXSM should anchor to the underlying notional of $141.30 per share and to the trader's directional view on AXSM stock.

AXSM covered call setup

The AXSM covered call below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AXSM at $141.30 on that close, the first option leg uses a $150.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AXSM 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 AXSM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$141.30	long
Sell 1	Call	$150.00	$5.65

AXSM covered call risk and reward

Net Premium / Debit: -$13,565.00
Max Profit (per contract): $1,435.00
Max Loss (per contract): -$13,564.00
Breakeven(s): $135.65
Risk / Reward Ratio: 0.106

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.

AXSM covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on AXSM. 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	-100.0%	-$13,564.00
$31.25	-77.9%	-$10,439.89
$62.49	-55.8%	-$7,315.78
$93.73	-33.7%	-$4,191.67
$124.97	-11.6%	-$1,067.56
$156.22	+10.6%	+$1,435.00
$187.46	+32.7%	+$1,435.00
$218.70	+54.8%	+$1,435.00
$249.94	+76.9%	+$1,435.00
$281.18	+99.0%	+$1,435.00

When traders use covered call on AXSM

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

AXSM thesis for this covered call

The market-implied 1-standard-deviation range for AXSM extends from approximately $119.38 on the downside to $163.22 on the upside. A AXSM covered call collects premium on an existing long AXSM position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether AXSM will breach that level within the expiration window. Current AXSM IV rank near 34.27% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on AXSM should anchor more to the directional view and the expected-move geometry. As a Healthcare name, AXSM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AXSM-specific events.

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

Frequently asked questions

What is a covered call on AXSM?: A covered call on AXSM is the covered call strategy applied to AXSM (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 AXSM stock at $141.30 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed AXSM chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AXSM 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 AXSM covered call priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 54.10%), the computed maximum profit is $1,435.00 per contract and the computed maximum loss is -$13,564.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AXSM covered call?: The breakeven for the AXSM covered call priced on this page is roughly $135.65 at expiration, derived from the November 13, 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 AXSM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.51%; 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 AXSM?: Covered calls on AXSM are an income strategy run on existing AXSM 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 AXSM implied volatility affect this covered call?: AXSM ATM IV is at 54.10% with IV rank near 34.27%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.