BYSI Covered Call Strategy
BYSI (BeyondSpring Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
BeyondSpring Inc., a clinical stage biopharmaceutical company, together with its subsidiaries, focuses on the development of cancer therapies. The company's lead asset is the Plinabulin, a selective immune-modulating microtubule-binding agent that has completed Phase III clinical trials for the prevention of chemotherapy-induced neutropenia; and for treatment of later-stage non-small cell lung cancer. It is also developing Plinabulin in combination with various immuno-oncology agents, including nivolumab, a PD-1 antibody for the treatment of NSCLC; nivolumab and ipilimumab, a CTLA-4 antibody for the treatment of SCLC; and in combination with PD-1 or PD-L1 antibodies and radiation for the treatment of various cancers. In addition, the company engages in the development of three small molecule immune agents in preclinical stages; and a drug development platform. The company was founded in 2010 and is headquartered in New York, New York.
BYSI (BeyondSpring Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $59.6M, a beta of 0.41 versus the broader market, a 52-week range of 1.21-3.44, average daily share volume of 17K, a public-listing history dating back to 2017, approximately 40 full-time employees. These structural characteristics shape how BYSI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.41 indicates BYSI 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 BYSI?
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 BYSI snapshot
As of May 15, 2026, spot at $1.38, ATM IV 20.40%, IV rank 0.00%, expected move 5.85%. The covered call on BYSI 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 BYSI specifically: BYSI IV at 20.40% is on the cheap side of its 1-year range, which means a premium-selling BYSI covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 5.85% (roughly $0.08 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 BYSI expiries trade a higher absolute premium for lower per-day decay. Position sizing on BYSI should anchor to the underlying notional of $1.38 per share and to the trader's directional view on BYSI stock.
BYSI covered call setup
The BYSI 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 BYSI near $1.38, the first option leg uses a $1.45 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BYSI 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 BYSI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $1.38 | long |
| Sell 1 | Call | $1.45 | N/A |
BYSI 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.
BYSI covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on BYSI. 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 BYSI
Covered calls on BYSI are an income strategy run on existing BYSI stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
BYSI thesis for this covered call
The market-implied 1-standard-deviation range for BYSI extends from approximately $1.30 on the downside to $1.46 on the upside. A BYSI covered call collects premium on an existing long BYSI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether BYSI will breach that level within the expiration window. Current BYSI IV rank near 0.00% 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 BYSI at 20.40%. As a Healthcare name, BYSI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BYSI-specific events.
BYSI 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. BYSI positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BYSI alongside the broader basket even when BYSI-specific fundamentals are unchanged. Short-premium structures like a covered call on BYSI carry tail risk when realized volatility exceeds the implied move; review historical BYSI earnings reactions and macro stress periods before sizing. Always rebuild the position from current BYSI chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on BYSI?
- A covered call on BYSI is the covered call strategy applied to BYSI (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 BYSI stock trading near $1.38, the strikes shown on this page are snapped to the nearest listed BYSI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BYSI 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 BYSI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 20.40%), 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 BYSI covered call?
- The breakeven for the BYSI covered call priced on this page is no defined breakeven on the modeled curve 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 BYSI market-implied 1-standard-deviation expected move is approximately 5.85%; 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 BYSI?
- Covered calls on BYSI are an income strategy run on existing BYSI 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 BYSI implied volatility affect this covered call?
- BYSI ATM IV is at 20.40% with IV rank near 0.00%, 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.