REPL Covered Call Strategy

REPL (Replimune Group, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Replimune Group, Inc., a biotechnology company, develops oncolytic immuno-gene therapies to treat cancer. It uses its proprietary Immunotherapy platform to design and develop product candidates that are intended to activate the immune system against cancer. The company's lead product candidate is RP1, a selectively replicating version of herpes simplex virus 1, which is in Phase I/II clinical trials for a range of solid tumors; and that is in Phase II clinical trials for patients with cutaneous squamous cell carcinoma. It is also developing RP2, which is in Phase I clinical trials for an anti-CTLA-4 antibody-like protein in order to block the inhibition of the immune response otherwise caused by CTLA-4; and RP3 that is in Phase I clinical trials to express immune-activating proteins that stimulate T cells. Replimune Group, Inc. was founded in 2015 and is headquartered in Woburn, Massachusetts.

REPL (Replimune Group, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $437.6M, a beta of 0.12 versus the broader market, a 52-week range of 1.5-13.24, average daily share volume of 5.4M, a public-listing history dating back to 2018, approximately 479 full-time employees. These structural characteristics shape how REPL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.12 indicates REPL has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a covered call on REPL?

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 REPL snapshot

As of May 15, 2026, spot at $5.26, ATM IV 143.13%, IV rank 30.24%, expected move 41.04%. The covered call on REPL 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 14-day expiry.

Why this covered call structure on REPL specifically: REPL IV at 143.13% is mid-range versus its 1-year history, so the credit collected on a REPL covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 41.04% (roughly $2.16 on the underlying). The 14-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated REPL expiries trade a higher absolute premium for lower per-day decay. Position sizing on REPL should anchor to the underlying notional of $5.26 per share and to the trader's directional view on REPL stock.

REPL covered call setup

The REPL 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 REPL near $5.26, the first option leg uses a $5.52 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed REPL chain at a 14-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 REPL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$5.26	long
Sell 1	Call	$5.52	N/A

REPL 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.

REPL covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on REPL. 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 REPL

Covered calls on REPL are an income strategy run on existing REPL stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.

REPL thesis for this covered call

The market-implied 1-standard-deviation range for REPL extends from approximately $3.10 on the downside to $7.42 on the upside. A REPL covered call collects premium on an existing long REPL position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether REPL will breach that level within the expiration window. Current REPL IV rank near 30.24% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on REPL should anchor more to the directional view and the expected-move geometry. As a Healthcare name, REPL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to REPL-specific events.

REPL 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. REPL positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move REPL alongside the broader basket even when REPL-specific fundamentals are unchanged. Short-premium structures like a covered call on REPL carry tail risk when realized volatility exceeds the implied move; review historical REPL earnings reactions and macro stress periods before sizing. Always rebuild the position from current REPL chain quotes before placing a trade.

Frequently asked questions

What is a covered call on REPL?: A covered call on REPL is the covered call strategy applied to REPL (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 REPL stock trading near $5.26, the strikes shown on this page are snapped to the nearest listed REPL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are REPL 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 REPL covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 143.13%), 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 REPL covered call?: The breakeven for the REPL 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 REPL market-implied 1-standard-deviation expected move is approximately 41.04%; 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 REPL?: Covered calls on REPL are an income strategy run on existing REPL 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 REPL implied volatility affect this covered call?: REPL ATM IV is at 143.13% with IV rank near 30.24%, 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.