CBIO Covered Call Strategy
CBIO (Crescent Biopharma, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Crescent Biopharma, Inc. is a biotechnology firm dedicated to the research and development of novel cancer therapies. Its investigational portfolio notably includes CR-001, a proprietary bispecific antibody engineered to simultaneously target PD-1 and VEGF pathways for the treatment of solid tumors. The company's pipeline further comprises CR-002 and CR-003. Crescent Biopharma also maintains a strategic alliance with Sichuan Kelun-Biotech Biopharmaceutical Co., Ltd., focusing on the joint advancement and commercialization of oncology therapeutics, encompassing innovative combination approaches. The company's operations are headquartered in Waltham, Massachusetts.
CBIO (Crescent Biopharma, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $610.3M, a beta of 1.22 versus the broader market, a 52-week range of 8.72-27.41, average daily share volume of 331K, a public-listing history dating back to 2014, approximately 44 full-time employees. These structural characteristics shape how CBIO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.22 places CBIO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a covered call on CBIO?
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.
CBIO snapshot
As of August 14, 2026, spot at $16.91, ATM IV 131.40%, IV rank 53.79%, expected move 37.67%. The covered call on CBIO 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 CBIO specifically: CBIO IV at 131.40% is mid-range versus its 1-year history, so the credit collected on a CBIO covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 37.67% (roughly $6.37 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 CBIO expiries trade a higher absolute premium for lower per-day decay. Position sizing on CBIO should anchor to the underlying notional of $16.91 per share and to the trader's directional view on CBIO stock.
CBIO covered call setup
The CBIO 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 CBIO at $16.91 on that close, the first option leg uses a $17.76 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CBIO 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 CBIO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $16.91 | long |
| Sell 1 | Call | $17.76 | N/A |
CBIO 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.
CBIO covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CBIO. 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 CBIO
Covered calls on CBIO are an income strategy run on existing CBIO stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CBIO thesis for this covered call
The market-implied 1-standard-deviation range for CBIO extends from approximately $10.54 on the downside to $23.28 on the upside. A CBIO covered call collects premium on an existing long CBIO position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CBIO will breach that level within the expiration window. Current CBIO IV rank near 53.79% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on CBIO should anchor more to the directional view and the expected-move geometry. As a Healthcare name, CBIO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CBIO-specific events.
CBIO 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. CBIO positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CBIO alongside the broader basket even when CBIO-specific fundamentals are unchanged. Short-premium structures like a covered call on CBIO carry tail risk when realized volatility exceeds the implied move; review historical CBIO earnings reactions and macro stress periods before sizing. Always rebuild the position from current CBIO chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CBIO?
- A covered call on CBIO is the covered call strategy applied to CBIO (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 CBIO stock at $16.91 on the most recent close, the strikes shown on this page are snapped to the nearest listed CBIO chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CBIO 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 CBIO covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 131.40%), 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 CBIO covered call?
- The breakeven for the CBIO 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 CBIO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 37.67%; 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 CBIO?
- Covered calls on CBIO are an income strategy run on existing CBIO 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 CBIO implied volatility affect this covered call?
- CBIO ATM IV is at 131.40% with IV rank near 53.79%, 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.