BDTX Covered Call Strategy
BDTX (Black Diamond Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Black Diamond Therapeutics, Inc. is a biotechnology enterprise dedicated to discovering, advancing, and bringing to market therapeutic agents specifically designed for patients with genetically characterized tumors. A core part of its pipeline is BDTX-189, an irreversible small molecule inhibitor. This compound is engineered to neutralize oncogenic proteins driven by non-canonical epidermal growth factor receptor (EGFR) and human epidermal growth factor receptor 2 (HER2) driver mutations. The firm is also progressing BDTX-1535, a brain-penetrant inhibitor addressing a range of EGFR mutations, including conventional, inherent resistance, and acquired resistance forms. Concurrently, it is advancing BDTX-4933, another brain-penetrant inhibitor targeting oncogenic BRAF alterations across Class I, II, and III categories. Black Diamond maintains a strategic alliance with OpenEye Scientific Software, Inc.
BDTX (Black Diamond Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $120.3M, a beta of 3.29 versus the broader market, a 52-week range of 1.6-4.94, average daily share volume of 1.4M, a public-listing history dating back to 2020, approximately 21 full-time employees. These structural characteristics shape how BDTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.29 indicates BDTX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a covered call on BDTX?
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.
BDTX snapshot
As of August 14, 2026, spot at $2.04, ATM IV 48.00%, IV rank 6.00%, expected move 13.76%. The covered call on BDTX below is built from the 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 BDTX specifically: BDTX IV at 48.00% is on the cheap side of its 1-year range, which means a premium-selling BDTX covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 13.76% (roughly $0.28 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 BDTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on BDTX should anchor to the underlying notional of $2.04 per share and to the trader's directional view on BDTX stock.
BDTX covered call setup
The BDTX 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 BDTX at $2.04 on that close, the first option leg uses a $2.14 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BDTX 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 BDTX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $2.04 | long |
| Sell 1 | Call | $2.14 | N/A |
BDTX covered call risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
BDTX covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on BDTX. 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.
When traders use covered call on BDTX
Covered calls on BDTX are an income strategy run on existing BDTX stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
BDTX thesis for this covered call
The market-implied 1-standard-deviation range for BDTX extends from approximately $1.76 on the downside to $2.32 on the upside. A BDTX covered call collects premium on an existing long BDTX position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether BDTX will breach that level within the expiration window. Current BDTX IV rank near 6.00% 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 BDTX at 48.00%. As a Healthcare name, BDTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BDTX-specific events.
BDTX 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. BDTX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BDTX alongside the broader basket even when BDTX-specific fundamentals are unchanged. Short-premium structures like a covered call on BDTX carry tail risk when realized volatility exceeds the implied move; review historical BDTX earnings reactions and macro stress periods before sizing. Always rebuild the position from current BDTX chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on BDTX?
- A covered call on BDTX is the covered call strategy applied to BDTX (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 BDTX stock at $2.04 on the most recent close, the strikes shown on this page are snapped to the nearest listed BDTX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are BDTX 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 BDTX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 48.00%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BDTX covered call?
- The breakeven for the BDTX covered call priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 BDTX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.76%; 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 BDTX?
- Covered calls on BDTX are an income strategy run on existing BDTX 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 BDTX implied volatility affect this covered call?
- BDTX ATM IV is at 48.00% with IV rank near 6.00%, 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.