BCRX – Covered Call – 19.12% potential return in 15 days

Updated: 28 May, 2020 seen 70

On April 30, 2020, I bought 110 shares of BCRX, paying $3.875 per share. BCRX is a small pharma doing a clinical study on galidesivir for treating the novel coronavirus disease (COVID-19).​

Found this name on Biotech Stocks Under $5. After a quick read on Yahoo Finance and options price research - I decided to sell covered call options on this stock. This is a bit of gambling, but as the money invested is not large, this is the gamble I'm ready to take

Here is the setup

  • BOT 100 BCRX Stock 3.875 USD
  • SLD 1 BCRX MAY 15 '20 4 Call Option 0.62 USD 

Potential income return 19.12% in 15 days
Break-even: $3.25

If the stock will trade above $4.00 on the expiry day - very well, I realize my max gain, 100 shares get called away. I keep 10 shares for a memory or seed for the future buys

If trades in between $3.25-$4.00 I keep selling covered calls

If trades below $3.25 - my max loss, in such scenario I will most probably double up to lower the cost basis and keep selling covered calls.

Selling covered calls with BCRX

Selling covered calls with BCRX


Hi! My name is Reinis Fischer (38), a proud dad and devoted husband. CEO and Founder of Terramatris crypto hedge fund, drone enthusiast, world traveler, photographer, and passionate lover of Georgian cuisine (vegetarian).

An ex-pat living in Georgia since 2011, I trade stocks, take photographs, work out at the gym, and many more. Here I write about travel, finance, and other things that might interest me.