CAPR Covered Call Strategy
CAPR (Capricor Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Capricor Therapeutics, Inc., a clinical-stage biotechnology company, focuses on the development of transformative cell and exosome-based therapeutics for the treatment and prevention of spectrum of diseases and disorders. Its lead candidate, CAP-1002, an allogeneic cardiac-derived cell therapy, which has completed phase III clinical trial for the treatment of patients with late-stage Duchenne muscular dystrophy (DMD); and CAP-1002, which is in Phase II clinical trial for the treatment of cytokine storm associated with SARS-CoV-2. The company also develops CAP-2003 that is in pre-clinical development for the treatment of trauma related injuries and conditions; and two vaccine candidates, which are in development stage for the potential prevention of COVID-19. It collaborates with Lonza Houston, Inc. for the clinical manufacturing of CAP-1002, its cell therapy candidate for the treatment of DMD and other indications. The company was founded in 2005 and is headquartered in San Diego, California.
CAPR (Capricor Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.39B, a beta of 0.48 versus the broader market, a 52-week range of 4.3-40.37, average daily share volume of 1.3M, a public-listing history dating back to 2007, approximately 160 full-time employees. These structural characteristics shape how CAPR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.48 indicates CAPR 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 CAPR?
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 CAPR snapshot
As of May 15, 2026, spot at $28.70, ATM IV 83.00%, IV rank 5.84%, expected move 23.80%. The covered call on CAPR 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 CAPR specifically: CAPR IV at 83.00% is on the cheap side of its 1-year range, which means a premium-selling CAPR covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 23.80% (roughly $6.83 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 CAPR expiries trade a higher absolute premium for lower per-day decay. Position sizing on CAPR should anchor to the underlying notional of $28.70 per share and to the trader's directional view on CAPR stock.
CAPR covered call setup
The CAPR 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 CAPR near $28.70, the first option leg uses a $30.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CAPR 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 CAPR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $28.70 | long |
| Sell 1 | Call | $30.00 | $2.48 |
CAPR covered call risk and reward
- Net Premium / Debit
- -$2,622.50
- Max Profit (per contract)
- $377.50
- Max Loss (per contract)
- -$2,621.50
- Breakeven(s)
- $26.22
- Risk / Reward Ratio
- 0.144
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.
CAPR covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CAPR. 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% | -$2,621.50 |
| $6.35 | -77.9% | -$1,987.04 |
| $12.70 | -55.8% | -$1,352.58 |
| $19.04 | -33.6% | -$718.11 |
| $25.39 | -11.5% | -$83.65 |
| $31.73 | +10.6% | +$377.50 |
| $38.08 | +32.7% | +$377.50 |
| $44.42 | +54.8% | +$377.50 |
| $50.77 | +76.9% | +$377.50 |
| $57.11 | +99.0% | +$377.50 |
When traders use covered call on CAPR
Covered calls on CAPR are an income strategy run on existing CAPR stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CAPR thesis for this covered call
The market-implied 1-standard-deviation range for CAPR extends from approximately $21.87 on the downside to $35.53 on the upside. A CAPR covered call collects premium on an existing long CAPR position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CAPR will breach that level within the expiration window. Current CAPR IV rank near 5.84% 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 CAPR at 83.00%. As a Healthcare name, CAPR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CAPR-specific events.
CAPR 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. CAPR positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CAPR alongside the broader basket even when CAPR-specific fundamentals are unchanged. Short-premium structures like a covered call on CAPR carry tail risk when realized volatility exceeds the implied move; review historical CAPR earnings reactions and macro stress periods before sizing. Always rebuild the position from current CAPR chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CAPR?
- A covered call on CAPR is the covered call strategy applied to CAPR (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 CAPR stock trading near $28.70, the strikes shown on this page are snapped to the nearest listed CAPR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CAPR 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 CAPR covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 83.00%), the computed maximum profit is $377.50 per contract and the computed maximum loss is -$2,621.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CAPR covered call?
- The breakeven for the CAPR covered call priced on this page is roughly $26.22 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 CAPR market-implied 1-standard-deviation expected move is approximately 23.80%; 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 CAPR?
- Covered calls on CAPR are an income strategy run on existing CAPR 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 CAPR implied volatility affect this covered call?
- CAPR ATM IV is at 83.00% with IV rank near 5.84%, 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.