Zenas BioPharma, Inc. (ZBIO) Covered Calls
The ProShares UltraPro Short Biotechnology (ZBIO) is a leveraged ETF that seeks daily results equal to three times the inverse (-3x) of the daily performance of the Nasdaq Biotechnology Index. It uses derivatives like swaps and futures to achieve its objective. Due to daily compounding and leverage, it is designed strictly as a short-term tactical tool for sophisticated traders and is not intended for long-term holding.
You can sell covered calls on Zenas BioPharma, Inc. to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for ZBIO (prices last updated Wed 4:16 PM ET):
| Zenas BioPharma, Inc. (ZBIO) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 22.19 | +1.13 | 17.40 | 22.70 | 466K | - | 1.2 |
| Covered Calls For Zenas BioPharma, Inc. (ZBIO) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| Apr 17 | 22.5 | 0.20 | 22.50 | 0.0% | 0.0% | |
| May 15 | 22.5 | 0.70 | 22.00 | 2.3% | 16.1% | |
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Core Business and Products
The ProShares UltraPro Short Biotechnology (ZBIO) provides aggressive, inverse exposure to the biotechnology sector. By seeking to deliver three times the inverse of the daily performance of the Nasdaq Biotechnology Index, it allows traders to profit from or hedge against sharp sector declines. Because the fund rebalances daily, compounding means performance over periods longer than one day can vary significantly from the target inverse multiple.
ZBIO is a high-risk instrument for active, short-term tactical traders. It is not designed for long-term investors; instead, it is a surgical tool used to express a bearish view on biotech, potentially capitalizing on regulatory hurdles, clinical trial failures, or broader market downturns.
Competitive Landscape
ZBIO competes in the specialized, leveraged, and inverse ETF space against products like the Direxion Daily S&P Biotech Bear 3X Shares. While many traders use these for hedging, the high cost of leverage and decay makes them suitable only for short-term directional views.
As a liquid and optionable security, ZBIO is used by institutional investors to hedge biotech-heavy portfolios against volatility. Because biotech is inherently sensitive to binary events like FDA announcements, the fund can experience extreme volatility, requiring strict risk management.
Strategic Outlook and Innovation
The strategic outlook for ZBIO is tied to the inherent volatility of the biotechnology sector. As biotech stocks react aggressively to clinical data, the fund serves as a mechanism for traders to capture these swings in the opposite direction. It remains a core instrument for short-term tactical engagement when market conditions favor bearish sentiment.
Innovation in this space is defined by the technical structure of the fund, ensuring exposure to the index is maintained efficiently despite the high costs of maintaining inverse leveraged positions. ZBIO remains a specialized, high-intensity tool for active traders who understand the risks of leverage and the decay associated with daily rebalancing.
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Want more examples? ZBH Covered Calls | ZBRA Covered Calls
Risk Disclosure: Trading options involves significant risk and is not suitable for all investors. The information provided on this website is for educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Nothing contained on this site is an offer to buy or sell, or a solicitation of an offer to buy or sell, any securities or financial instruments.
Covered Call Strategy Risks: While covered call writing is often considered a conservative options strategy, it is not without risk. By selling a covered call, you are limiting your potential upside profit from the underlying stock. You remain exposed to the full downside risk of owning the underlying stock. In the event of a significant decline in the stock price, the premium received may not be sufficient to offset your losses.
No Guarantee of Performance: Past performance is not indicative of future results. Any examples, calculations, or hypothetical scenarios presented on this site are for illustrative purposes only and do not guarantee future returns or outcomes. Market conditions, liquidity, and trading system failures can affect your ability to execute trades at desired prices.
You should consult with a qualified professional advisor and conduct your own due diligence before making any investment decisions. By using this website, you acknowledge that you are responsible for your own investment decisions and agree to release this site and its affiliates from any liability relating to your use of this information. See the OCC's Characteristics and Risks of Standardized Options for more info.
