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 end-of-day chain at a 30-day expiry (ATM IV 62.20%), the computed maximum profit is $108.00 per contract and the computed maximum loss is -$791.00 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 $7.92 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 VIR market-implied 1-standard-deviation expected move is approximately 17.83%; 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 62.20% with IV rank near 8.95%, 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.

VIR Covered Call Strategy

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

Vir Biotechnology, Inc., a commercial-stage immunology company, develops therapeutic products to treat and prevent serious infectious diseases. It develops Sotrovimab (VIR-7832), a SARS-CoV-2-neutralizing mAbs to treat and prevent COVID-19 infection under the Xevudy brand; VIR-2218 and VIR-3434 for the treatment of hepatitis B virus; VIR-2482 for the prevention of influenza A virus; and VIR-1111 for the prevention of human immunodeficiency virus. The company has grant agreements with Bill & Melinda Gates Foundation and National Institutes of Health; an option and license agreement with Brii Biosciences Limited and Brii Biosciences Offshore Limited; a collaboration and license agreement with Alnylam Pharmaceuticals, Inc.; license agreements with The Rockefeller University and MedImmune, Inc.; collaboration with WuXi Biologics and Glaxo Wellcome UK Ltd.; and a collaborative research agreement with GlaxoSmithKline Biologicals SA. It also has a manufacturing agreement with Samsung Biologics Co.,Ltd. for the manufacture of SARS-COV-2 antibodies; and clinical collaboration with Gilead Sciences, Inc. for chronic hepatitis B virus. Vir Biotechnology, Inc. was incorporated in 2016 and is headquartered in San Francisco, California.

VIR (Vir Biotechnology, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.57B, a beta of 1.70 versus the broader market, a 52-week range of 4.155-11.66, average daily share volume of 3.6M, a public-listing history dating back to 2019, approximately 408 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 1.70 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.

Current VIR snapshot

As of May 15, 2026, spot at $8.77, ATM IV 62.20%, IV rank 8.95%, expected move 17.83%. The covered call on VIR 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 63-day expiry.

Why this covered call structure on VIR specifically: VIR IV at 62.20% 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 17.83% (roughly $1.56 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 $8.77 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 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With VIR near $8.77, the first option leg uses a $9.00 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	$8.77	long
Sell 1	Call	$9.00	$0.85

VIR covered call risk and reward

Net Premium / Debit: -$792.00
Max Profit (per contract): $108.00
Max Loss (per contract): -$791.00
Breakeven(s): $7.92
Risk / Reward Ratio: 0.137

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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$791.00
$1.95	-77.8%	-$597.20
$3.89	-55.7%	-$403.40
$5.82	-33.6%	-$209.60
$7.76	-11.5%	-$15.80
$9.70	+10.6%	+$108.00
$11.64	+32.7%	+$108.00
$13.58	+54.8%	+$108.00
$15.51	+76.9%	+$108.00
$17.45	+99.0%	+$108.00

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 $7.21 on the downside to $10.33 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 8.95% 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 VIR at 62.20%. 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 trading near $8.77, the strikes shown on this page are snapped to the nearest listed VIR chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 62.20%), the computed maximum profit is $108.00 per contract and the computed maximum loss is -$791.00 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 $7.92 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 VIR market-implied 1-standard-deviation expected move is approximately 17.83%; 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 62.20% with IV rank near 8.95%, 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.