How are VRDN 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 VRDN covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 61.80%), the computed maximum profit is $145.00 per contract and the computed maximum loss is -$1,754.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a VRDN covered call?

The breakeven for the VRDN covered call priced on this page is roughly $17.55 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 VRDN market-implied 1-standard-deviation expected move is approximately 17.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current VRDN implied volatility affect this covered call?

VRDN ATM IV is at 61.80% with IV rank near 8.32%, 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.

VRDN Covered Call Strategy

VRDN (Viridian Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Viridian Therapeutics, Inc. is a biotechnology firm committed to creating therapies for patients afflicted by serious illnesses. Its primary development efforts include VRDN-001, a humanized monoclonal anti-IGF-1R antibody currently advancing through Phase 1/2 clinical trials for thyroid eye disease (TED). The company's portfolio also features VRDN-002, an IGF-1R antibody undergoing Phase 1 clinical evaluation, alongside VRDN-003, a therapeutic antibody also designed to target IGF-1R for TED. Established in 2006, this Waltham, Massachusetts-based firm previously operated as Miragen Therapeutics, Inc., before changing its name to Viridian Therapeutics, Inc. in January 2021.

VRDN (Viridian Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.61B, a beta of 0.90 versus the broader market, a 52-week range of 13.18-34.29, average daily share volume of 3.0M, a public-listing history dating back to 2014, approximately 143 full-time employees. These structural characteristics shape how VRDN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.90 places VRDN 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 VRDN?

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 VRDN snapshot

As of June 30, 2026, spot at $18.55, ATM IV 61.80%, IV rank 8.32%, expected move 17.72%. The covered call on VRDN 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 17-day expiry.

Why this covered call structure on VRDN specifically: VRDN IV at 61.80% is on the cheap side of its 1-year range, which means a premium-selling VRDN covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 17.72% (roughly $3.29 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated VRDN expiries trade a higher absolute premium for lower per-day decay. Position sizing on VRDN should anchor to the underlying notional of $18.55 per share and to the trader's directional view on VRDN stock.

VRDN covered call setup

The VRDN 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 VRDN near $18.55, the first option leg uses a $19.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VRDN chain at a 17-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 VRDN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$18.55	long
Sell 1	Call	$19.00	$1.00

VRDN covered call risk and reward

Net Premium / Debit: -$1,755.00
Max Profit (per contract): $145.00
Max Loss (per contract): -$1,754.00
Breakeven(s): $17.55
Risk / Reward Ratio: 0.083

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.

VRDN covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on VRDN. 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%	-$1,754.00
$4.11	-77.8%	-$1,343.96
$8.21	-55.7%	-$933.92
$12.31	-33.6%	-$523.88
$16.41	-11.5%	-$113.84
$20.51	+10.6%	+$145.00
$24.61	+32.7%	+$145.00
$28.71	+54.8%	+$145.00
$32.81	+76.9%	+$145.00
$36.91	+99.0%	+$145.00

When traders use covered call on VRDN

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

VRDN thesis for this covered call

The market-implied 1-standard-deviation range for VRDN extends from approximately $15.26 on the downside to $21.84 on the upside. A VRDN covered call collects premium on an existing long VRDN position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether VRDN will breach that level within the expiration window. Current VRDN IV rank near 8.32% 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 VRDN at 61.80%. As a Healthcare name, VRDN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VRDN-specific events.

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

Frequently asked questions

What is a covered call on VRDN?: A covered call on VRDN is the covered call strategy applied to VRDN (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 VRDN stock trading near $18.55, the strikes shown on this page are snapped to the nearest listed VRDN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are VRDN 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 VRDN covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 61.80%), the computed maximum profit is $145.00 per contract and the computed maximum loss is -$1,754.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a VRDN covered call?: The breakeven for the VRDN covered call priced on this page is roughly $17.55 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 VRDN market-implied 1-standard-deviation expected move is approximately 17.72%; 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 VRDN?: Covered calls on VRDN are an income strategy run on existing VRDN 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 VRDN implied volatility affect this covered call?: VRDN ATM IV is at 61.80% with IV rank near 8.32%, 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.