ORIC Covered Call Strategy
ORIC (ORIC Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
ORIC Pharmaceuticals, Inc. operates as a clinical-stage biopharmaceutical firm dedicated to discovering and advancing innovative treatments for cancer patients across the United States. The company's pipeline includes several key clinical-stage drug candidates. ORIC-533 is an oral small molecule designed to inhibit CD73, addressing resistance to both chemotherapy and immunotherapy. Another candidate, ORIC-944, is an allosteric inhibitor targeting the polycomb repressive complex 2, specifically for the treatment of prostate cancer. Furthermore, ORIC-114 is a brain-penetrant, orally administered, irreversible inhibitor crafted to precisely target epidermal growth factor receptor (EGFR) and human epidermal growth factor receptor 2 (HER2), demonstrating high potency against exon 20 insertion mutations. Beyond these advanced programs, ORIC Pharmaceuticals is also cultivating multiple early-stage precision medicines aimed at other mechanisms of cancer resistance.
ORIC (ORIC Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.42B, a beta of 0.97 versus the broader market, a 52-week range of 7.23-14.93, average daily share volume of 1.9M, a public-listing history dating back to 2020, approximately 111 full-time employees. These structural characteristics shape how ORIC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.97 places ORIC 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 ORIC?
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.
ORIC snapshot
As of August 14, 2026, spot at $13.79, ATM IV 98.30%, IV rank 16.95%, expected move 28.18%. The covered call on ORIC below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this covered call structure on ORIC specifically: ORIC IV at 98.30% is on the cheap side of its 1-year range, which means a premium-selling ORIC covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 28.18% (roughly $3.89 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ORIC expiries trade a higher absolute premium for lower per-day decay. Position sizing on ORIC should anchor to the underlying notional of $13.79 per share and to the trader's directional view on ORIC stock.
ORIC covered call setup
The ORIC covered call below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ORIC at $13.79 on that close, 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 ORIC chain at a 35-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 ORIC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $13.79 | long |
| Sell 1 | Call | $14.00 | $1.34 |
ORIC covered call risk and reward
- Net Premium / Debit
- -$1,245.00
- Max Profit (per contract)
- $155.00
- Max Loss (per contract)
- -$1,244.00
- Breakeven(s)
- $12.45
- Risk / Reward Ratio
- 0.125
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.
ORIC covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on ORIC. 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% | -$1,244.00 |
| $3.06 | -77.8% | -$939.21 |
| $6.11 | -55.7% | -$634.41 |
| $9.15 | -33.6% | -$329.62 |
| $12.20 | -11.5% | -$24.82 |
| $15.25 | +10.6% | +$155.00 |
| $18.30 | +32.7% | +$155.00 |
| $21.35 | +54.8% | +$155.00 |
| $24.39 | +76.9% | +$155.00 |
| $27.44 | +99.0% | +$155.00 |
When traders use covered call on ORIC
Covered calls on ORIC are an income strategy run on existing ORIC stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
ORIC thesis for this covered call
The market-implied 1-standard-deviation range for ORIC extends from approximately $9.90 on the downside to $17.68 on the upside. A ORIC covered call collects premium on an existing long ORIC position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether ORIC will breach that level within the expiration window. Current ORIC IV rank near 16.95% 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 ORIC at 98.30%. As a Healthcare name, ORIC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ORIC-specific events.
ORIC 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. ORIC positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ORIC alongside the broader basket even when ORIC-specific fundamentals are unchanged. Short-premium structures like a covered call on ORIC carry tail risk when realized volatility exceeds the implied move; review historical ORIC earnings reactions and macro stress periods before sizing. Always rebuild the position from current ORIC chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on ORIC?
- A covered call on ORIC is the covered call strategy applied to ORIC (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 ORIC stock at $13.79 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ORIC chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ORIC 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 ORIC covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 98.30%), the computed maximum profit is $155.00 per contract and the computed maximum loss is -$1,244.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ORIC covered call?
- The breakeven for the ORIC covered call priced on this page is roughly $12.45 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The ORIC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 28.18%; 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 ORIC?
- Covered calls on ORIC are an income strategy run on existing ORIC 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 ORIC implied volatility affect this covered call?
- ORIC ATM IV is at 98.30% with IV rank near 16.95%, 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.