DTIL Covered Call Strategy
DTIL (Precision BioSciences, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Precision BioSciences, Inc. is a clinical-stage biotechnology firm based in the United States, specializing in the creation of both in vivo gene editing solutions and ex vivo allogeneic CAR T-cell therapies. At its core is ARCUS, a proprietary genome editing platform designed to address and potentially cure genetic diseases. The company's portfolio also encompasses Ex vivo Allogeneic CAR T Immunotherapy, an innovative approach where specific immune cells, known as T-cells, are genetically modified outside the body to precisely identify and eliminate cancer cells. Among its prominent therapeutic candidates are: PBCAR0191, currently undergoing Phase 1/2a clinical trials for adult patients battling relapsed/refractory (R/R) non-Hodgkin lymphoma or R/R B-cell precursor acute lymphoblastic leukemia (B-ALL). PBCAR19B, an anti-CD19 CAR T candidate leveraging a "stealth cell" platform through a single-step gene edit, engineered to reduce the likelihood of chromosomal abnormalities. PBCAR269A, an investigational allogeneic CAR T immunotherapy formulated to target BCMA, intended for the treatment of R/R multiple myeloma.
DTIL (Precision BioSciences, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $93.5M, a beta of 1.28 versus the broader market, a 52-week range of 3.53-8.82, average daily share volume of 330K, a public-listing history dating back to 2019, approximately 108 full-time employees. These structural characteristics shape how DTIL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.28 places DTIL 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 DTIL?
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 DTIL snapshot
As of June 30, 2026, spot at $7.90, ATM IV 109.20%, IV rank 21.02%, expected move 31.31%. The covered call on DTIL 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 17-day expiry.
Why this covered call structure on DTIL specifically: DTIL IV at 109.20% is on the cheap side of its 1-year range, which means a premium-selling DTIL covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 31.31% (roughly $2.47 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DTIL expiries trade a higher absolute premium for lower per-day decay. Position sizing on DTIL should anchor to the underlying notional of $7.90 per share and to the trader's directional view on DTIL stock.
DTIL covered call setup
The DTIL 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 DTIL near $7.90, the first option leg uses a $8.30 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DTIL chain at a 17-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 DTIL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $7.90 | long |
| Sell 1 | Call | $8.30 | N/A |
DTIL 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.
DTIL covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on DTIL. 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 DTIL
Covered calls on DTIL are an income strategy run on existing DTIL stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
DTIL thesis for this covered call
The market-implied 1-standard-deviation range for DTIL extends from approximately $5.43 on the downside to $10.37 on the upside. A DTIL covered call collects premium on an existing long DTIL position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether DTIL will breach that level within the expiration window. Current DTIL IV rank near 21.02% 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 DTIL at 109.20%. As a Healthcare name, DTIL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DTIL-specific events.
DTIL 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. DTIL positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DTIL alongside the broader basket even when DTIL-specific fundamentals are unchanged. Short-premium structures like a covered call on DTIL carry tail risk when realized volatility exceeds the implied move; review historical DTIL earnings reactions and macro stress periods before sizing. Always rebuild the position from current DTIL chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on DTIL?
- A covered call on DTIL is the covered call strategy applied to DTIL (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 DTIL stock trading near $7.90, the strikes shown on this page are snapped to the nearest listed DTIL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DTIL 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 DTIL covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 109.20%), 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 DTIL covered call?
- The breakeven for the DTIL 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 DTIL market-implied 1-standard-deviation expected move is approximately 31.31%; 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 DTIL?
- Covered calls on DTIL are an income strategy run on existing DTIL 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 DTIL implied volatility affect this covered call?
- DTIL ATM IV is at 109.20% with IV rank near 21.02%, 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.