How are BBIO 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 BBIO covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 45.90%), the computed maximum profit is $566.50 per contract and the computed maximum loss is -$6,432.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BBIO covered call?

The breakeven for the BBIO covered call priced on this page is roughly $64.34 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 BBIO market-implied 1-standard-deviation expected move is approximately 13.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BBIO implied volatility affect this covered call?

BBIO ATM IV is at 45.90% with IV rank near 14.40%, 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.

BBIO Covered Call Strategy

BBIO (BridgeBio Pharma, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

BridgeBio Pharma, Inc. engages in the discovery, development, and delivery of various medicines for genetic diseases. The company has a pipeline of 30 development programs that include product candidates ranging from early discovery to late-stage development. Its products in development programs include AG10 and BBP-265, a small molecule stabilizer of transthyretin, or TTR that is in Phase 3 clinical trial for the treatment of TTR amyloidosis-cardiomyopathy, or ATTR-CM; BBP-831, a small molecule selective FGFR1-3 inhibitor, which is Phase 2 clinical trial to treat achondroplasia in pediatric patients; and BBP-631, an AAV5 gene transfer product candidate that is in Phase 2 clinical trial for the treatment of congenital adrenal hyperplasia, or CAH, driven by 21-hydroxylase deficiency, or 21OHD. The company also develops Encaleret, a small molecule antagonist of the calcium sensing receptor, or CaSR, which is in phase 2 proof-of-concept clinical trial for Autosomal Dominant Hypocalcemia Type 1, or ADH1; and BBP-711 for the treatment of hyperoxaluria, as well as patients suffering from recurrent kidney stones. In addition, it engages in developing products for Mendelian, oncology, and gene therapy diseases. BridgeBio Pharma, Inc. has license and collaboration agreements with the Leland Stanford Junior University; and The Regents of the University of California; Leidos Biomedical Research, Inc.

BBIO (BridgeBio Pharma, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $13.44B, a beta of 1.02 versus the broader market, a 52-week range of 31.77-84.94, average daily share volume of 2.7M, a public-listing history dating back to 2019, approximately 725 full-time employees. These structural characteristics shape how BBIO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.02 places BBIO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a covered call on BBIO?

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 BBIO snapshot

As of May 15, 2026, spot at $66.81, ATM IV 45.90%, IV rank 14.40%, expected move 13.16%. The covered call on BBIO 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 BBIO specifically: BBIO IV at 45.90% is on the cheap side of its 1-year range, which means a premium-selling BBIO covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 13.16% (roughly $8.79 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 BBIO expiries trade a higher absolute premium for lower per-day decay. Position sizing on BBIO should anchor to the underlying notional of $66.81 per share and to the trader's directional view on BBIO stock.

BBIO covered call setup

The BBIO 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 BBIO near $66.81, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BBIO 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 BBIO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$66.81	long
Sell 1	Call	$70.00	$2.48

BBIO covered call risk and reward

Net Premium / Debit: -$6,433.50
Max Profit (per contract): $566.50
Max Loss (per contract): -$6,432.50
Breakeven(s): $64.34
Risk / Reward Ratio: 0.088

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.

BBIO covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on BBIO. 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%	-$6,432.50
$14.78	-77.9%	-$4,955.40
$29.55	-55.8%	-$3,478.31
$44.32	-33.7%	-$2,001.21
$59.09	-11.5%	-$524.12
$73.86	+10.6%	+$566.50
$88.64	+32.7%	+$566.50
$103.41	+54.8%	+$566.50
$118.18	+76.9%	+$566.50
$132.95	+99.0%	+$566.50

When traders use covered call on BBIO

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

BBIO thesis for this covered call

The market-implied 1-standard-deviation range for BBIO extends from approximately $58.02 on the downside to $75.60 on the upside. A BBIO covered call collects premium on an existing long BBIO position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether BBIO will breach that level within the expiration window. Current BBIO IV rank near 14.40% 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 BBIO at 45.90%. As a Healthcare name, BBIO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BBIO-specific events.

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

Frequently asked questions

What is a covered call on BBIO?: A covered call on BBIO is the covered call strategy applied to BBIO (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 BBIO stock trading near $66.81, the strikes shown on this page are snapped to the nearest listed BBIO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BBIO 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 BBIO covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 45.90%), the computed maximum profit is $566.50 per contract and the computed maximum loss is -$6,432.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BBIO covered call?: The breakeven for the BBIO covered call priced on this page is roughly $64.34 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 BBIO market-implied 1-standard-deviation expected move is approximately 13.16%; 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 BBIO?: Covered calls on BBIO are an income strategy run on existing BBIO 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 BBIO implied volatility affect this covered call?: BBIO ATM IV is at 45.90% with IV rank near 14.40%, 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.