RXRX Covered Call Strategy
RXRX (Recursion Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Recursion Pharmaceuticals, Inc. operates as a biotechnology firm currently in its clinical development phase. The company's mission is to revolutionize drug discovery by decoding biological processes, utilizing an integrated approach that combines technological innovations across biology, chemistry, automation, data science, and engineering. Their developmental pipeline features several clinical-stage compounds: REC-994, which is advancing through Phase IIa trials for cerebral cavernous malformation; REC-3599, currently in Phase I trials for GM2 gangliosidosis; REC-2282, aimed at treating neurofibromatosis type 2; and REC-4881, intended for familial adenomatous polyposis. Beyond these, Recursion maintains a comprehensive preclinical portfolio. This includes REC-3964 for Clostridium difficile colitis, REC-64917 targeting neural or systemic inflammation, and REC-65029 for HRD-negative ovarian cancer. Further preclinical candidates are REC-648918, designed to enhance anti-tumor immunity; REC-2029 for wnt-mutant hepatocellular carcinoma; REC-14221 for various solid and hematological malignancies; and REC-64151, focused on addressing immune checkpoint resistance in KRAS/STK11 mutant non-small cell lung cancer.
RXRX (Recursion Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.57B, a beta of 1.00 versus the broader market, a 52-week range of 2.77-7.18, average daily share volume of 16.3M, a public-listing history dating back to 2021, approximately 800 full-time employees. These structural characteristics shape how RXRX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.00 places RXRX 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 RXRX?
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 RXRX snapshot
As of June 30, 2026, spot at $3.67, ATM IV 81.93%, IV rank 21.15%, expected move 23.49%. The covered call on RXRX 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 31-day expiry.
Why this covered call structure on RXRX specifically: RXRX IV at 81.93% is on the cheap side of its 1-year range, which means a premium-selling RXRX covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 23.49% (roughly $0.86 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RXRX expiries trade a higher absolute premium for lower per-day decay. Position sizing on RXRX should anchor to the underlying notional of $3.67 per share and to the trader's directional view on RXRX stock.
RXRX covered call setup
The RXRX 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 RXRX near $3.67, the first option leg uses a $3.85 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RXRX chain at a 31-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 RXRX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $3.67 | long |
| Sell 1 | Call | $3.85 | N/A |
RXRX 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.
RXRX covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on RXRX. 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 RXRX
Covered calls on RXRX are an income strategy run on existing RXRX stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
RXRX thesis for this covered call
The market-implied 1-standard-deviation range for RXRX extends from approximately $2.81 on the downside to $4.53 on the upside. A RXRX covered call collects premium on an existing long RXRX position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether RXRX will breach that level within the expiration window. Current RXRX IV rank near 21.15% 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 RXRX at 81.93%. As a Healthcare name, RXRX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RXRX-specific events.
RXRX 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. RXRX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RXRX alongside the broader basket even when RXRX-specific fundamentals are unchanged. Short-premium structures like a covered call on RXRX carry tail risk when realized volatility exceeds the implied move; review historical RXRX earnings reactions and macro stress periods before sizing. Always rebuild the position from current RXRX chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on RXRX?
- A covered call on RXRX is the covered call strategy applied to RXRX (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 RXRX stock trading near $3.67, the strikes shown on this page are snapped to the nearest listed RXRX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RXRX 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 RXRX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 81.93%), 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 RXRX covered call?
- The breakeven for the RXRX 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 RXRX market-implied 1-standard-deviation expected move is approximately 23.49%; 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 RXRX?
- Covered calls on RXRX are an income strategy run on existing RXRX 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 RXRX implied volatility affect this covered call?
- RXRX ATM IV is at 81.93% with IV rank near 21.15%, 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.