DTIL Covered Call Strategy
DTIL (Precision BioSciences, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Precision BioSciences, Inc., a clinical stage gene editing company, develops in vivo gene editing and ex vivo allogeneic CAR T therapies in the United States. It offers ARCUS, a genome editing platform to cure genetic disorders. The company also provides Ex vivo Allogeneic CAR T Immunotherapy, a form of immunotherapy in which T cell, a specific type of immune cell is genetically engineered to recognize and kill cancer cells; PBCAR0191, which is in Phase 1/2a clinical trial in adult patients with R/R NHL or R/R B-cell precursor acute lymphoblastic leukemia, or B-ALL; PBCAR19B, an anti-CD19 CAR T candidate built on the stealth cell platform utilizing a single-step gene edit to minimize the risk of chromosome abnormalities; and PBCAR269A, an investigational allogeneic CAR T immunotherapy targeting BCMA for the treatment of R/R multiple myeloma. The company has development and commercial license agreement with Les Laboratoires Servier to develop allogeneic chimeric antigen receptor T cell therapies for antigen targets, hematological cancer targets beyond CD19, and solid tumor targets; Tiziana Life Sciences to evaluate foralumab, a fully human anti-CD3 monoclonal antibody as a lymphodepleting agent for the potential treatment of cancers; and iECURE, Inc. to develop ARCUS-based gene editing therapies. Precision BioSciences, Inc. was incorporated in 2006 and is headquartered in Durham, North Carolina.
DTIL (Precision BioSciences, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $107.0M, a beta of 1.31 versus the broader market, a 52-week range of 3.53-8.82, average daily share volume of 265K, 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 1.31 indicates DTIL 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 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 May 15, 2026, spot at $7.38, ATM IV 277.00%, IV rank 55.61%, expected move 79.41%. 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 34-day expiry.
Why this covered call structure on DTIL specifically: DTIL IV at 277.00% is mid-range versus its 1-year history, so the credit collected on a DTIL covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 79.41% (roughly $5.86 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 DTIL expiries trade a higher absolute premium for lower per-day decay. Position sizing on DTIL should anchor to the underlying notional of $7.38 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 $7.38, the first option leg uses a $7.75 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 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 DTIL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $7.38 | long |
| Sell 1 | Call | $7.75 | 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 $1.52 on the downside to $13.24 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 55.61% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on DTIL should anchor more to the directional view and the expected-move geometry. 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 $7.38, 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 277.00%), 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 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 79.41%; 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 277.00% with IV rank near 55.61%, 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.