CRVS Covered Call Strategy
CRVS (Corvus Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Corvus Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, focuses on the development and commercialization of immuno-oncology therapies. Its lead product candidate is Mupadolimab (CPI-006), an anti-CD73 monoclonal antibody, which is in Phase Ib/II clinical trial for non-small cell lung cancer and head and neck cancers. The company also develops CPI-818, a covalent inhibitor of ITK, which is in Phase I/Ib clinical trial to treat patients with various malignant T-cell lymphomas, as well as designed to inhibit the proliferation of certain malignant T-cells; and Ciforadenant (CPI-444), an oral, small molecule antagonist of the A2A receptor that is in Phase II clinical trial for patients with either advanced or refractory renal cell cancer. Its preclinical stage products include CPI-182, an antibody designed to block inflammation and myeloid suppression; and CPI-935, an adenosine A2B receptor antagonist to prevent fibrosis. Corvus Pharmaceuticals, Inc. has a strategic collaboration with Angel Pharmaceuticals for the development its pipeline of targeted investigational medicines. The company was incorporated in 2014 and is based in Burlingame, California.
CRVS (Corvus Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.33B, a beta of 0.94 versus the broader market, a 52-week range of 3.38-26.95, average daily share volume of 1.3M, a public-listing history dating back to 2016, approximately 31 full-time employees. These structural characteristics shape how CRVS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.94 places CRVS 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 CRVS?
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 CRVS snapshot
As of May 15, 2026, spot at $12.23, ATM IV 76.00%, IV rank 6.01%, expected move 21.79%. The covered call on CRVS 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 34-day expiry.
Why this covered call structure on CRVS specifically: CRVS IV at 76.00% is on the cheap side of its 1-year range, which means a premium-selling CRVS covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 21.79% (roughly $2.66 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CRVS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRVS should anchor to the underlying notional of $12.23 per share and to the trader's directional view on CRVS stock.
CRVS covered call setup
The CRVS 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 CRVS near $12.23, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRVS chain at a 34-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 CRVS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $12.23 | long |
| Sell 1 | Call | $13.00 | $0.85 |
CRVS covered call risk and reward
- Net Premium / Debit
- -$1,138.00
- Max Profit (per contract)
- $162.00
- Max Loss (per contract)
- -$1,137.00
- Breakeven(s)
- $11.38
- Risk / Reward Ratio
- 0.142
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.
CRVS covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CRVS. 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 | -99.9% | -$1,137.00 |
| $2.71 | -77.8% | -$866.70 |
| $5.42 | -55.7% | -$596.40 |
| $8.12 | -33.6% | -$326.10 |
| $10.82 | -11.5% | -$55.79 |
| $13.53 | +10.6% | +$162.00 |
| $16.23 | +32.7% | +$162.00 |
| $18.93 | +54.8% | +$162.00 |
| $21.63 | +76.9% | +$162.00 |
| $24.34 | +99.0% | +$162.00 |
When traders use covered call on CRVS
Covered calls on CRVS are an income strategy run on existing CRVS stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CRVS thesis for this covered call
The market-implied 1-standard-deviation range for CRVS extends from approximately $9.57 on the downside to $14.89 on the upside. A CRVS covered call collects premium on an existing long CRVS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CRVS will breach that level within the expiration window. Current CRVS IV rank near 6.01% 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 CRVS at 76.00%. As a Healthcare name, CRVS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRVS-specific events.
CRVS 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. CRVS positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CRVS alongside the broader basket even when CRVS-specific fundamentals are unchanged. Short-premium structures like a covered call on CRVS carry tail risk when realized volatility exceeds the implied move; review historical CRVS earnings reactions and macro stress periods before sizing. Always rebuild the position from current CRVS chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CRVS?
- A covered call on CRVS is the covered call strategy applied to CRVS (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 CRVS stock trading near $12.23, the strikes shown on this page are snapped to the nearest listed CRVS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CRVS 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 CRVS covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 76.00%), the computed maximum profit is $162.00 per contract and the computed maximum loss is -$1,137.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CRVS covered call?
- The breakeven for the CRVS covered call priced on this page is roughly $11.38 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 CRVS market-implied 1-standard-deviation expected move is approximately 21.79%; 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 CRVS?
- Covered calls on CRVS are an income strategy run on existing CRVS 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 CRVS implied volatility affect this covered call?
- CRVS ATM IV is at 76.00% with IV rank near 6.01%, 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.