NTLA Covered Call Strategy
NTLA (Intellia Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Intellia Therapeutics, Inc., a genome editing company, focuses on the development of therapeutics. The company's in vivo programs include NTLA-2001, which is in Phase 1 clinical trial for the treatment of transthyretin amyloidosis; and NTLA-2002 for the treatment of hereditary angioedema, as well as other liver-focused programs comprising hemophilia A and hemophilia B, hyperoxaluria Type 1, and alpha-1 antitrypsin deficiency. Its ex vivo pipeline includes NTLA-5001 for the treatment of acute myeloid leukemia; and proprietary programs focused on developing engineered cell therapies to treat various oncological and autoimmune disorders. In addition, it offers tools comprising of Clustered, Regularly Interspaced Short Palindromic Repeats/CRISPR associated 9 (CRISPR/Cas9) system. Intellia Therapeutics, Inc. has license and collaboration agreements with Novartis Institutes for BioMedical Research, Inc. to engineer hematopoietic stem cells for the treatment of sickle cell disease; Regeneron Pharmaceuticals, Inc. to co-develop potential products for the treatment of hemophilia A and hemophilia B; Ospedale San Raffaele; and a strategic collaboration with SparingVision SAS to develop novel genomic medicines utilizing CRISPR/Cas9 technology for the treatment of ocular diseases. The company was formerly known as AZRN, Inc.
NTLA (Intellia Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.60B, a beta of 1.93 versus the broader market, a 52-week range of 6.83-28.25, average daily share volume of 5.8M, a public-listing history dating back to 2016, approximately 403 full-time employees. These structural characteristics shape how NTLA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.93 indicates NTLA 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 NTLA?
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 NTLA snapshot
As of May 15, 2026, spot at $13.39, ATM IV 82.70%, IV rank 28.90%, expected move 23.71%. The covered call on NTLA 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 NTLA specifically: NTLA IV at 82.70% is on the cheap side of its 1-year range, which means a premium-selling NTLA covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 23.71% (roughly $3.17 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 NTLA expiries trade a higher absolute premium for lower per-day decay. Position sizing on NTLA should anchor to the underlying notional of $13.39 per share and to the trader's directional view on NTLA stock.
NTLA covered call setup
The NTLA 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 NTLA near $13.39, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NTLA 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 NTLA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $13.39 | long |
| Sell 1 | Call | $14.00 | $1.15 |
NTLA covered call risk and reward
- Net Premium / Debit
- -$1,224.00
- Max Profit (per contract)
- $176.00
- Max Loss (per contract)
- -$1,223.00
- Breakeven(s)
- $12.24
- Risk / Reward Ratio
- 0.144
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.
NTLA covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on NTLA. 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 | -99.9% | -$1,223.00 |
| $2.97 | -77.8% | -$927.05 |
| $5.93 | -55.7% | -$631.10 |
| $8.89 | -33.6% | -$335.15 |
| $11.85 | -11.5% | -$39.20 |
| $14.81 | +10.6% | +$176.00 |
| $17.77 | +32.7% | +$176.00 |
| $20.73 | +54.8% | +$176.00 |
| $23.69 | +76.9% | +$176.00 |
| $26.65 | +99.0% | +$176.00 |
When traders use covered call on NTLA
Covered calls on NTLA are an income strategy run on existing NTLA stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
NTLA thesis for this covered call
The market-implied 1-standard-deviation range for NTLA extends from approximately $10.22 on the downside to $16.56 on the upside. A NTLA covered call collects premium on an existing long NTLA position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether NTLA will breach that level within the expiration window. Current NTLA IV rank near 28.90% 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 NTLA at 82.70%. As a Healthcare name, NTLA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NTLA-specific events.
NTLA 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. NTLA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NTLA alongside the broader basket even when NTLA-specific fundamentals are unchanged. Short-premium structures like a covered call on NTLA carry tail risk when realized volatility exceeds the implied move; review historical NTLA earnings reactions and macro stress periods before sizing. Always rebuild the position from current NTLA chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on NTLA?
- A covered call on NTLA is the covered call strategy applied to NTLA (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 NTLA stock trading near $13.39, the strikes shown on this page are snapped to the nearest listed NTLA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NTLA 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 NTLA covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 82.70%), the computed maximum profit is $176.00 per contract and the computed maximum loss is -$1,223.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NTLA covered call?
- The breakeven for the NTLA covered call priced on this page is roughly $12.24 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 NTLA market-implied 1-standard-deviation expected move is approximately 23.71%; 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 NTLA?
- Covered calls on NTLA are an income strategy run on existing NTLA 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 NTLA implied volatility affect this covered call?
- NTLA ATM IV is at 82.70% with IV rank near 28.90%, 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.