CAPR Covered Call Strategy
CAPR (Capricor Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Capricor Therapeutics, Inc. is a clinical-stage biotechnology company, which focuses on the development of transformative cell and exosome-based therapeutics for treating Duchenne muscular dystrophy (“DMD”), a rare form of muscular dystrophy which results in muscle degeneration and premature death, and other diseases with unmet medical needs. Its product candidate consists of CAP-1002, Engineered Exosomes, CAP-2003, and Exosome-Based Vaccine. The company was founded on June 17, 1996 and is headquartered in San Diego, CA.
CAPR (Capricor Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $241.0M, a beta of 0.53 versus the broader market, a 52-week range of 2.96-40.37, average daily share volume of 2.3M, a public-listing history dating back to 2007, approximately 231 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 0.53 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.
CAPR snapshot
As of August 14, 2026, spot at $6.63, ATM IV 269.70%, IV rank 52.83%, expected move 77.32%. The covered call on CAPR below is built from the August 14, 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 CAPR specifically: CAPR IV at 269.70% is mid-range versus its 1-year history, so the credit collected on a CAPR covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 77.32% (roughly $5.13 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 CAPR expiries trade a higher absolute premium for lower per-day decay. Position sizing on CAPR should anchor to the underlying notional of $6.63 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 August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CAPR at $6.63 on that close, the first option leg uses a $7.00 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 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 CAPR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $6.63 | long |
| Sell 1 | Call | $7.00 | $1.95 |
CAPR covered call risk and reward
- Net Premium / Debit
- -$468.00
- Max Profit (per contract)
- $232.00
- Max Loss (per contract)
- -$467.00
- Breakeven(s)
- $4.68
- Risk / Reward Ratio
- 0.497
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 | -99.8% | -$467.00 |
| $1.47 | -77.8% | -$320.52 |
| $2.94 | -55.7% | -$174.04 |
| $4.40 | -33.6% | -$27.55 |
| $5.87 | -11.5% | +$118.93 |
| $7.33 | +10.6% | +$232.00 |
| $8.80 | +32.7% | +$232.00 |
| $10.26 | +54.8% | +$232.00 |
| $11.73 | +76.9% | +$232.00 |
| $13.19 | +99.0% | +$232.00 |
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 $1.50 on the downside to $11.76 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 52.83% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on CAPR should anchor more to the directional view and the expected-move geometry. 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 at $6.63 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CAPR chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 269.70%), the computed maximum profit is $232.00 per contract and the computed maximum loss is -$467.00 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 $4.68 at expiration, derived from the August 14, 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 CAPR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 77.32%; 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 269.70% with IV rank near 52.83%, 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.