KYMR Covered Call Strategy
KYMR (Kymera Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Kymera Therapeutics, Inc., a biopharmaceutical company, focuses on discovering and developing novel small molecule therapeutics that selectively degrade disease-causing proteins by harnessing the body's own natural protein degradation system. It engages in developing IRAK4 program, which is in Phase I clinical trial for the treatment of immunology-inflammation diseases, including hidradenitis suppurativa, atopic dermatitis, macrophage activation syndrome, general pustular psoriasis, and rheumatoid arthritis; IRAKIMiD program to treat MYD88-mutated diffuse large B cell lymphoma; STAT3 program for the treatment of hematologic malignancies and solid tumors, as well as autoimmune diseases and fibrosis; and MDM2 program to treat hematological malignancies and solid tumors. The company was incorporated in 2015 and is headquartered in Watertown, Massachusetts.
KYMR (Kymera Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $7.04B, a beta of 2.06 versus the broader market, a 52-week range of 28.06-103, average daily share volume of 650K, a public-listing history dating back to 2020, approximately 208 full-time employees. These structural characteristics shape how KYMR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.06 indicates KYMR 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 KYMR?
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 KYMR snapshot
As of May 13, 2026, spot at $85.46, ATM IV 57.90%, IV rank 10.13%, expected move 16.60%. The covered call on KYMR 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 98-day expiry.
Why this covered call structure on KYMR specifically: KYMR IV at 57.90% is on the cheap side of its 1-year range, which means a premium-selling KYMR covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 16.60% (roughly $14.19 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KYMR expiries trade a higher absolute premium for lower per-day decay. Position sizing on KYMR should anchor to the underlying notional of $85.46 per share and to the trader's directional view on KYMR stock.
KYMR covered call setup
The KYMR 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 KYMR near $85.46, the first option leg uses a $90.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KYMR chain at a 98-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 KYMR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $85.46 | long |
| Sell 1 | Call | $90.00 | $7.60 |
KYMR covered call risk and reward
- Net Premium / Debit
- -$7,786.00
- Max Profit (per contract)
- $1,214.00
- Max Loss (per contract)
- -$7,785.00
- Breakeven(s)
- $77.86
- Risk / Reward Ratio
- 0.156
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.
KYMR covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on KYMR. 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 | -100.0% | -$7,785.00 |
| $18.90 | -77.9% | -$5,895.54 |
| $37.80 | -55.8% | -$4,006.09 |
| $56.69 | -33.7% | -$2,116.63 |
| $75.59 | -11.6% | -$227.17 |
| $94.48 | +10.6% | +$1,214.00 |
| $113.38 | +32.7% | +$1,214.00 |
| $132.27 | +54.8% | +$1,214.00 |
| $151.17 | +76.9% | +$1,214.00 |
| $170.06 | +99.0% | +$1,214.00 |
When traders use covered call on KYMR
Covered calls on KYMR are an income strategy run on existing KYMR stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
KYMR thesis for this covered call
The market-implied 1-standard-deviation range for KYMR extends from approximately $71.27 on the downside to $99.65 on the upside. A KYMR covered call collects premium on an existing long KYMR position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether KYMR will breach that level within the expiration window. Current KYMR IV rank near 10.13% 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 KYMR at 57.90%. As a Healthcare name, KYMR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KYMR-specific events.
KYMR 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. KYMR positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KYMR alongside the broader basket even when KYMR-specific fundamentals are unchanged. Short-premium structures like a covered call on KYMR carry tail risk when realized volatility exceeds the implied move; review historical KYMR earnings reactions and macro stress periods before sizing. Always rebuild the position from current KYMR chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on KYMR?
- A covered call on KYMR is the covered call strategy applied to KYMR (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 KYMR stock trading near $85.46, the strikes shown on this page are snapped to the nearest listed KYMR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KYMR 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 KYMR covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 57.90%), the computed maximum profit is $1,214.00 per contract and the computed maximum loss is -$7,785.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KYMR covered call?
- The breakeven for the KYMR covered call priced on this page is roughly $77.86 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 KYMR market-implied 1-standard-deviation expected move is approximately 16.60%; 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 KYMR?
- Covered calls on KYMR are an income strategy run on existing KYMR 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 KYMR implied volatility affect this covered call?
- KYMR ATM IV is at 57.90% with IV rank near 10.13%, 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.