CTMX Covered Call Strategy
CTMX (CytomX Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
CytomX Therapeutics, Inc. is a United States-based biopharmaceutical company primarily focused on creating treatments for cancer. The company utilizes its proprietary Probody technology platform to engineer targeted antibody therapeutics for oncological applications. Its robust clinical pipeline includes several notable drug candidates. CX-2009, an antibody-drug conjugate (ADC) designed to target CD166, is currently in Phase II clinical trials for treating breast cancer. Another investigational therapy, CX-2029, has also reached Phase II trials, where it is being evaluated for various cancers such as squamous non-small cell lung cancer, head and neck squamous cell carcinoma, esophageal and gastro-esophageal junction cancers, and diffuse large B-cell lymphoma. Additionally, CytomX is progressing two CTLA-4 Probody therapeutics: BMS-986249, which is undergoing Phase I/II clinical trials for metastatic melanoma, and BMS-986288, in Phase I trials for solid tumors.
CTMX (CytomX Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $546.8M, a beta of 2.09 versus the broader market, a 52-week range of 1.72-8.21, average daily share volume of 4.4M, a public-listing history dating back to 2015, approximately 119 full-time employees. These structural characteristics shape how CTMX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.09 indicates CTMX 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 CTMX?
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 CTMX snapshot
As of June 29, 2026, spot at $3.76, ATM IV 98.90%, IV rank 19.87%, expected move 28.35%. The covered call on CTMX 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 18-day expiry.
Why this covered call structure on CTMX specifically: CTMX IV at 98.90% is on the cheap side of its 1-year range, which means a premium-selling CTMX covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 28.35% (roughly $1.07 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CTMX expiries trade a higher absolute premium for lower per-day decay. Position sizing on CTMX should anchor to the underlying notional of $3.76 per share and to the trader's directional view on CTMX stock.
CTMX covered call setup
The CTMX 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 CTMX near $3.76, the first option leg uses a $3.95 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CTMX chain at a 18-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 CTMX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $3.76 | long |
| Sell 1 | Call | $3.95 | N/A |
CTMX 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.
CTMX covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CTMX. 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 CTMX
Covered calls on CTMX are an income strategy run on existing CTMX stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CTMX thesis for this covered call
The market-implied 1-standard-deviation range for CTMX extends from approximately $2.69 on the downside to $4.83 on the upside. A CTMX covered call collects premium on an existing long CTMX position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CTMX will breach that level within the expiration window. Current CTMX IV rank near 19.87% 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 CTMX at 98.90%. As a Healthcare name, CTMX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CTMX-specific events.
CTMX 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. CTMX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CTMX alongside the broader basket even when CTMX-specific fundamentals are unchanged. Short-premium structures like a covered call on CTMX carry tail risk when realized volatility exceeds the implied move; review historical CTMX earnings reactions and macro stress periods before sizing. Always rebuild the position from current CTMX chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CTMX?
- A covered call on CTMX is the covered call strategy applied to CTMX (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 CTMX stock trading near $3.76, the strikes shown on this page are snapped to the nearest listed CTMX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CTMX 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 CTMX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 98.90%), 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 CTMX covered call?
- The breakeven for the CTMX 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 CTMX market-implied 1-standard-deviation expected move is approximately 28.35%; 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 CTMX?
- Covered calls on CTMX are an income strategy run on existing CTMX 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 CTMX implied volatility affect this covered call?
- CTMX ATM IV is at 98.90% with IV rank near 19.87%, 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.