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 September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 157.48%), the computed maximum profit is $130.50 per contract and the computed maximum loss is -$768.50 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 $7.69 at expiration, derived from the September 29, 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 45.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CAPR implied volatility affect this covered call?

CAPR ATM IV is at 157.48% with IV rank near 29.04%, 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.

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 $480.8M, a beta of 0.53 versus the broader market, a 52-week range of 2.96-40.37, average daily share volume of 4.9M, 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 September 29, 2026, spot at $8.62, ATM IV 157.48%, IV rank 29.04%, expected move 45.15%. The covered call on CAPR below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.

Why this covered call structure on CAPR specifically: CAPR IV at 157.48% 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 45.15% (roughly $3.89 on the underlying). The 17-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 $8.62 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 September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CAPR at $8.62 on that close, the first option leg uses a $9.00 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 17-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	$8.62	long
Sell 1	Call	$9.00	$0.93

CAPR covered call risk and reward

Net Premium / Debit: -$769.50
Max Profit (per contract): $130.50
Max Loss (per contract): -$768.50
Breakeven(s): $7.69
Risk / Reward Ratio: 0.170

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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$768.50
$1.91	-77.8%	-$578.02
$3.82	-55.7%	-$387.54
$5.72	-33.6%	-$197.05
$7.63	-11.5%	-$6.57
$9.53	+10.6%	+$130.50
$11.44	+32.7%	+$130.50
$13.34	+54.8%	+$130.50
$15.25	+76.9%	+$130.50
$17.15	+99.0%	+$130.50

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 $4.73 on the downside to $12.51 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 29.04% 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 157.48%. 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 $8.62 on the September 29, 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 September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 157.48%), the computed maximum profit is $130.50 per contract and the computed maximum loss is -$768.50 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 $7.69 at expiration, derived from the September 29, 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 45.15%; 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 157.48% with IV rank near 29.04%, 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.