CRSP Covered Call Strategy
CRSP (CRISPR Therapeutics AG), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
CRISPR Therapeutics AG (CRSP) is a biotechnology firm dedicated to pioneering gene-based medicines for severe diseases. The company achieves this through its exclusive Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR)/CRISPR-associated protein 9 (Cas9) technology, which enables precise and targeted alterations to an organism's genetic code. Its extensive pipeline includes therapeutic candidates spanning multiple medical areas, such as blood disorders (hemoglobinopathies), various cancers (oncology), regenerative medicine, and rare conditions. The company's flagship investigational therapy is CTX001, an ex vivo CRISPR gene-edited treatment. This therapy aims to benefit patients with transfusion-dependent beta-thalassemia or severe sickle cell disease by modifying their own hematopoietic stem cells to markedly boost the production of fetal hemoglobin within red blood cells. CRISPR Therapeutics is also advancing several other genetically engineered allogeneic (donor-sourced) CAR-T investigational therapies: CTX110, designed to combat cluster of differentiation 19-positive malignancies; CTX120, which targets B-cell maturation antigen for multiple myeloma that has relapsed or proven resistant to previous treatments; and CTX130, focused on Cluster of Differentiation 70 for a spectrum of solid tumors and blood cancers.
CRSP (CRISPR Therapeutics AG) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $5.16B, a beta of 1.74 versus the broader market, a 52-week range of 44.12-78.48, average daily share volume of 1.7M, a public-listing history dating back to 2016, approximately 393 full-time employees. These structural characteristics shape how CRSP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.74 indicates CRSP has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a covered call on CRSP?
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.
CRSP snapshot
As of August 14, 2026, spot at $53.48, ATM IV 51.48%, IV rank 5.93%, expected move 14.76%. The covered call on CRSP 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 28-day expiry.
Why this covered call structure on CRSP specifically: CRSP IV at 51.48% is on the cheap side of its 1-year range, which means a premium-selling CRSP covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 14.76% (roughly $7.89 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CRSP expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRSP should anchor to the underlying notional of $53.48 per share and to the trader's directional view on CRSP stock.
CRSP covered call setup
The CRSP 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 CRSP at $53.48 on that close, the first option leg uses a $56.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRSP chain at a 28-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 CRSP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $53.48 | long |
| Sell 1 | Call | $56.00 | $1.73 |
CRSP covered call risk and reward
- Net Premium / Debit
- -$5,175.50
- Max Profit (per contract)
- $424.50
- Max Loss (per contract)
- -$5,174.50
- Breakeven(s)
- $51.75
- Risk / Reward Ratio
- 0.082
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.
CRSP covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CRSP. 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% | -$5,174.50 |
| $11.83 | -77.9% | -$3,992.14 |
| $23.66 | -55.8% | -$2,809.78 |
| $35.48 | -33.7% | -$1,627.41 |
| $47.30 | -11.5% | -$445.05 |
| $59.13 | +10.6% | +$424.50 |
| $70.95 | +32.7% | +$424.50 |
| $82.78 | +54.8% | +$424.50 |
| $94.60 | +76.9% | +$424.50 |
| $106.42 | +99.0% | +$424.50 |
When traders use covered call on CRSP
Covered calls on CRSP are an income strategy run on existing CRSP stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CRSP thesis for this covered call
The market-implied 1-standard-deviation range for CRSP extends from approximately $45.59 on the downside to $61.37 on the upside. A CRSP covered call collects premium on an existing long CRSP position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CRSP will breach that level within the expiration window. Current CRSP IV rank near 5.93% 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 CRSP at 51.48%. As a Healthcare name, CRSP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRSP-specific events.
CRSP 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. CRSP positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CRSP alongside the broader basket even when CRSP-specific fundamentals are unchanged. Short-premium structures like a covered call on CRSP carry tail risk when realized volatility exceeds the implied move; review historical CRSP earnings reactions and macro stress periods before sizing. Always rebuild the position from current CRSP chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CRSP?
- A covered call on CRSP is the covered call strategy applied to CRSP (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 CRSP stock at $53.48 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CRSP chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CRSP 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 CRSP covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 51.48%), the computed maximum profit is $424.50 per contract and the computed maximum loss is -$5,174.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CRSP covered call?
- The breakeven for the CRSP covered call priced on this page is roughly $51.75 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 CRSP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.76%; 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 CRSP?
- Covered calls on CRSP are an income strategy run on existing CRSP 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 CRSP implied volatility affect this covered call?
- CRSP ATM IV is at 51.48% with IV rank near 5.93%, 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.