CRSP Covered Call Strategy
CRSP (CRISPR Therapeutics AG), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
CRISPR Therapeutics AG, a gene editing company, focuses on developing gene-based medicines for serious diseases using its proprietary Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR)/CRISPR-associated protein 9 (Cas9) platform. Its CRISPR/Cas9 is a gene editing technology that allows for precise directed changes to genomic DNA. The company has a portfolio of therapeutic programs across a range of disease areas, including hemoglobinopathies, oncology, regenerative medicine, and rare diseases. The company's lead product candidate is CTX001, an ex vivo CRISPR gene-edited therapy for treating patients suffering from transfusion-dependent beta-thalassemia or severe sickle cell disease in which a patient's hematopoietic stem cells are engineered to produce high levels of fetal hemoglobin in red blood cells. It also develops CTX110, a donor-derived gene-edited allogeneic CAR-T investigational therapy targeting cluster of differentiation 19 positive malignancies; CTX120, a donor-derived gene-edited allogeneic CAR-T investigational therapy targeting B-cell maturation antigen for the treatment of relapsed or refractory multiple myeloma; and CTX130, a donor-derived gene-edited allogeneic CAR-T investigational therapy targeting Cluster of Differentiation 70 to treat various solid tumors and hematologic malignancies. In addition, the company develops VCTX210, a gene-edited immune-evasive stem cell-derived product candidate for the treatment of treatment of type 1 diabetes; and pursues various in vivo gene-editing programs that target the liver, lung, muscle, and central nervous system diseases.
CRSP (CRISPR Therapeutics AG) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $5.09B, a beta of 1.74 versus the broader market, a 52-week range of 34.87-78.48, average daily share volume of 1.9M, 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.
Current CRSP snapshot
As of May 15, 2026, spot at $48.77, ATM IV 53.87%, IV rank 12.78%, expected move 15.45%. The covered call on CRSP 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 28-day expiry.
Why this covered call structure on CRSP specifically: CRSP IV at 53.87% 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 15.45% (roughly $7.53 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 $48.77 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 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CRSP near $48.77, the first option leg uses a $51.00 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 | $48.77 | long |
| Sell 1 | Call | $51.00 | $1.88 |
CRSP covered call risk and reward
- Net Premium / Debit
- -$4,689.50
- Max Profit (per contract)
- $410.50
- Max Loss (per contract)
- -$4,688.50
- Breakeven(s)
- $46.90
- Risk / Reward Ratio
- 0.088
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% | -$4,688.50 |
| $10.79 | -77.9% | -$3,610.28 |
| $21.57 | -55.8% | -$2,532.06 |
| $32.36 | -33.7% | -$1,453.84 |
| $43.14 | -11.5% | -$375.62 |
| $53.92 | +10.6% | +$410.50 |
| $64.70 | +32.7% | +$410.50 |
| $75.49 | +54.8% | +$410.50 |
| $86.27 | +76.9% | +$410.50 |
| $97.05 | +99.0% | +$410.50 |
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 $41.24 on the downside to $56.30 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 12.78% 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 53.87%. 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 trading near $48.77, the strikes shown on this page are snapped to the nearest listed CRSP chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 53.87%), the computed maximum profit is $410.50 per contract and the computed maximum loss is -$4,688.50 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 $46.90 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 CRSP market-implied 1-standard-deviation expected move is approximately 15.45%; 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 53.87% with IV rank near 12.78%, 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.