CSBR Covered Call Strategy
CSBR (Champions Oncology, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Champions Oncology, Inc. develops and sells technology solutions and products to personalize the development and use of oncology drugs in the United States. Its Tumorgraft Technology Platform is an approach to personalizing cancer care based upon the implantation of human tumors in immune-deficient mice. The company, through its Tumorgraft Technology Platform, provides personalized cancer care based upon the implantation of human tumors in immune-deficient mice. It also offers Translational Oncology Solutions that utilizes its technology platform to assist pharmaceutical and biotechnology companies with their drug development process. The company provides Lumin Bioinformatics, a software platform and data tool that contains comprehensive information derived from research services and clinical studies, and sold on an annual subscriptions basis. The company markets its products through internet, word of mouth, and sales force to patients and physicians.
CSBR (Champions Oncology, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $83.6M, a beta of 0.43 versus the broader market, a 52-week range of 5.5-9.63, average daily share volume of 8K, a public-listing history dating back to 2007, approximately 210 full-time employees. These structural characteristics shape how CSBR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.43 indicates CSBR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a covered call on CSBR?
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 CSBR snapshot
As of May 15, 2026, spot at $6.30, ATM IV 337.00%, IV rank 69.63%, expected move 96.61%. The covered call on CSBR 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 CSBR specifically: CSBR IV at 337.00% is mid-range versus its 1-year history, so the credit collected on a CSBR covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 96.61% (roughly $6.09 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 CSBR expiries trade a higher absolute premium for lower per-day decay. Position sizing on CSBR should anchor to the underlying notional of $6.30 per share and to the trader's directional view on CSBR stock.
CSBR covered call setup
The CSBR 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 CSBR near $6.30, the first option leg uses a $6.62 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CSBR 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 CSBR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $6.30 | long |
| Sell 1 | Call | $6.62 | N/A |
CSBR 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.
CSBR covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CSBR. 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 CSBR
Covered calls on CSBR are an income strategy run on existing CSBR stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CSBR thesis for this covered call
The market-implied 1-standard-deviation range for CSBR extends from approximately $0.21 on the downside to $12.39 on the upside. A CSBR covered call collects premium on an existing long CSBR position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CSBR will breach that level within the expiration window. Current CSBR IV rank near 69.63% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on CSBR should anchor more to the directional view and the expected-move geometry. As a Healthcare name, CSBR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CSBR-specific events.
CSBR 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. CSBR positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CSBR alongside the broader basket even when CSBR-specific fundamentals are unchanged. Short-premium structures like a covered call on CSBR carry tail risk when realized volatility exceeds the implied move; review historical CSBR earnings reactions and macro stress periods before sizing. Always rebuild the position from current CSBR chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CSBR?
- A covered call on CSBR is the covered call strategy applied to CSBR (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 CSBR stock trading near $6.30, the strikes shown on this page are snapped to the nearest listed CSBR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CSBR 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 CSBR covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 337.00%), 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 CSBR covered call?
- The breakeven for the CSBR 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 CSBR market-implied 1-standard-deviation expected move is approximately 96.61%; 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 CSBR?
- Covered calls on CSBR are an income strategy run on existing CSBR 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 CSBR implied volatility affect this covered call?
- CSBR ATM IV is at 337.00% with IV rank near 69.63%, 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.