How are VIR 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 VIR covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 68.40%), the computed maximum profit is $134.50 per contract and the computed maximum loss is -$864.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a VIR covered call?

The breakeven for the VIR covered call priced on this page is roughly $8.66 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 VIR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 19.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current VIR implied volatility affect this covered call?

VIR ATM IV is at 68.40% with IV rank near 9.56%, 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.

VIR Covered Call Strategy

VIR (Vir Biotechnology, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Vir Biotechnology, Inc. operates as an immunology company with commercialized products, dedicated to devising therapeutic solutions for the treatment and prevention of significant infectious diseases. Its pipeline features several key candidates: Sotrovimab (branded as Xevudy, or VIR-7832), a neutralizing monoclonal antibody for both treating and preventing SARS-CoV-2 infection; VIR-2218 and VIR-3434, aimed at hepatitis B virus; VIR-2482, targeting the prevention of influenza A virus; and VIR-1111, designed to prevent human immunodeficiency virus. The firm maintains a robust network of strategic partnerships and collaborations. These include grant support from organizations like the Bill & Melinda Gates Foundation and the National Institutes of Health. It holds option and licensing arrangements with entities such as Brii Biosciences Limited, and a collaboration and license agreement with Alnylam Pharmaceuticals, Inc. Further licensing relationships exist with The Rockefeller University and MedImmune, Inc.

VIR (Vir Biotechnology, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.51B, a beta of 1.59 versus the broader market, a 52-week range of 4.25-11.66, average daily share volume of 1.8M, a public-listing history dating back to 2019, approximately 367 full-time employees. These structural characteristics shape how VIR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.59 indicates VIR 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 VIR?

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.

VIR snapshot

As of August 14, 2026, spot at $9.23, ATM IV 68.40%, IV rank 9.56%, expected move 19.61%. The covered call on VIR 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 63-day expiry.

Why this covered call structure on VIR specifically: VIR IV at 68.40% is on the cheap side of its 1-year range, which means a premium-selling VIR covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 19.61% (roughly $1.81 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated VIR expiries trade a higher absolute premium for lower per-day decay. Position sizing on VIR should anchor to the underlying notional of $9.23 per share and to the trader's directional view on VIR stock.

VIR covered call setup

The VIR 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 VIR at $9.23 on that close, the first option leg uses a $10.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VIR chain at a 63-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 VIR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$9.23	long
Sell 1	Call	$10.00	$0.58

VIR covered call risk and reward

Net Premium / Debit: -$865.50
Max Profit (per contract): $134.50
Max Loss (per contract): -$864.50
Breakeven(s): $8.66
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.

VIR covered call payoff curve

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

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$864.50
$2.05	-77.8%	-$660.53
$4.09	-55.7%	-$456.56
$6.13	-33.6%	-$252.59
$8.17	-11.5%	-$48.62
$10.21	+10.6%	+$134.50
$12.25	+32.7%	+$134.50
$14.29	+54.8%	+$134.50
$16.33	+76.9%	+$134.50
$18.37	+99.0%	+$134.50

When traders use covered call on VIR

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

VIR thesis for this covered call

The market-implied 1-standard-deviation range for VIR extends from approximately $7.42 on the downside to $11.04 on the upside. A VIR covered call collects premium on an existing long VIR position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether VIR will breach that level within the expiration window. Current VIR IV rank near 9.56% 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 VIR at 68.40%. As a Healthcare name, VIR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VIR-specific events.

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

Frequently asked questions

What is a covered call on VIR?: A covered call on VIR is the covered call strategy applied to VIR (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 VIR stock at $9.23 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed VIR chain strike and the premiums come straight from that session's bid/ask midpoint.
How are VIR 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 VIR covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 68.40%), the computed maximum profit is $134.50 per contract and the computed maximum loss is -$864.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a VIR covered call?: The breakeven for the VIR covered call priced on this page is roughly $8.66 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 VIR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 19.61%; 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 VIR?: Covered calls on VIR are an income strategy run on existing VIR 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 VIR implied volatility affect this covered call?: VIR ATM IV is at 68.40% with IV rank near 9.56%, 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.