CHRS Covered Call Strategy
CHRS (Coherus Oncology, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Coherus Oncology, Inc. is a biopharmaceutical company primarily focused on the research, development, and commercialization of cancer immunotherapies across the United States. The company's commercialized products include several biosimilar therapies. These comprise UDENYCA, a long-acting granulocyte-colony stimulating factor biosimilar to Neulasta; YUSIMRY, an equivalent to Humira, prescribed for inflammatory conditions like rheumatoid arthritis, psoriasis, and Crohn's disease, which are characterized by heightened tumor necrosis factor (TNF) production; and CIMERLI, a Lucentis biosimilar aimed at treating specific ophthalmic disorders such as neovascular age-related macular degeneration, macular edema, and diabetic retinopathy. Beyond its commercial products, Coherus maintains a robust pipeline of investigational immunotherapies. This includes LOQTORZI, a novel, next-generation programmed death receptor-1 (PD-1) inhibitor; Casdozokitug, a recombinant human immunoglobulin G1 (IgG1) monoclonal antibody designed to target interleukin 27; CHS-114, a highly specific human afucosylated IgG1 monoclonal antibody targeting a chemokine receptor prevalent on Treg cells in the tumor microenvironment (TME); CHS-1000, an anti-ILT4 monoclonal antibody aimed at solid tumors; and GSK4381562, an antibody engineered to target CD112R on tumor cells. To support its endeavors, the company has forged several strategic alliances.
CHRS (Coherus Oncology, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $183.6M, a beta of 0.96 versus the broader market, a 52-week range of 0.72-2.616, average daily share volume of 1.1M, a public-listing history dating back to 2014, approximately 228 full-time employees. These structural characteristics shape how CHRS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.96 places CHRS 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 CHRS?
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 CHRS snapshot
As of June 30, 2026, spot at $1.42, ATM IV 214.30%, IV rank 49.30%, expected move 61.44%. The covered call on CHRS 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 17-day expiry.
Why this covered call structure on CHRS specifically: CHRS IV at 214.30% is mid-range versus its 1-year history, so the credit collected on a CHRS covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 61.44% (roughly $0.87 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 CHRS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHRS should anchor to the underlying notional of $1.42 per share and to the trader's directional view on CHRS stock.
CHRS covered call setup
The CHRS 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 CHRS near $1.42, the first option leg uses a $1.49 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHRS 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 CHRS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $1.42 | long |
| Sell 1 | Call | $1.49 | N/A |
CHRS 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.
CHRS covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CHRS. 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 CHRS
Covered calls on CHRS are an income strategy run on existing CHRS stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CHRS thesis for this covered call
The market-implied 1-standard-deviation range for CHRS extends from approximately $0.55 on the downside to $2.29 on the upside. A CHRS covered call collects premium on an existing long CHRS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CHRS will breach that level within the expiration window. Current CHRS IV rank near 49.30% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on CHRS should anchor more to the directional view and the expected-move geometry. As a Healthcare name, CHRS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHRS-specific events.
CHRS 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. CHRS positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CHRS alongside the broader basket even when CHRS-specific fundamentals are unchanged. Short-premium structures like a covered call on CHRS carry tail risk when realized volatility exceeds the implied move; review historical CHRS earnings reactions and macro stress periods before sizing. Always rebuild the position from current CHRS chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CHRS?
- A covered call on CHRS is the covered call strategy applied to CHRS (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 CHRS stock trading near $1.42, the strikes shown on this page are snapped to the nearest listed CHRS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CHRS 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 CHRS covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 214.30%), 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 CHRS covered call?
- The breakeven for the CHRS 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 CHRS market-implied 1-standard-deviation expected move is approximately 61.44%; 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 CHRS?
- Covered calls on CHRS are an income strategy run on existing CHRS 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 CHRS implied volatility affect this covered call?
- CHRS ATM IV is at 214.30% with IV rank near 49.30%, 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.