ALXO Covered Call Strategy
ALXO (ALX Oncology Holdings Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
ALX Oncology Holdings Inc., a clinical-stage immuno-oncology company, focuses on developing therapies for cancer patients in the United States. The company’s lead product candidate is Evorpacept, a CD47 blocking therapeutic biologic development as a combination therapy with other anti-cancer agents, including ASPEN-06, under phase 2 clinical study for treating Gastric/GEJ cancer. It has collaboration agreement for Evorpacept combination programs comprising Jazz Pharmaceuticals plc for zanidatamab, under phase 1b/2 trial for the treatment of breast cancer and other solid tumors; HER2 with an ADC, fam-trastuzumab deruxtecan-nxki, under phase 1 trial for the treatment of patients with breast cancer; ALX2004, under phase 1 clinical trial for treating solid tumors; MD Anderson Cancer Center with rituximab and lenalidomide for the treatment of patients with indolent and aggressive NHL; and Sanofi with isatuximab and dexamethasone, under phase 1/2 trial for the treatment of patients with relapsed or refractory multiple myeloma. It has license agreements with Board of Trustees of Leland Stanford Junior University. The company was incorporated in 2015 and is headquartered in South San Francisco, California.
ALXO (ALX Oncology Holdings Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $274.5M, a beta of 0.45 versus the broader market, a 52-week range of 0.41-2.66, average daily share volume of 1.4M, a public-listing history dating back to 2020, approximately 43 full-time employees. These structural characteristics shape how ALXO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.45 indicates ALXO has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a covered call on ALXO?
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 ALXO snapshot
As of June 30, 2026, spot at $2.07, ATM IV 233.70%, IV rank 45.61%, expected move 67.00%. The covered call on ALXO 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 ALXO specifically: ALXO IV at 233.70% is mid-range versus its 1-year history, so the credit collected on a ALXO covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 67.00% (roughly $1.39 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 ALXO expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALXO should anchor to the underlying notional of $2.07 per share and to the trader's directional view on ALXO stock.
ALXO covered call setup
The ALXO 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 ALXO near $2.07, the first option leg uses a $2.17 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALXO 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 ALXO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $2.07 | long |
| Sell 1 | Call | $2.17 | N/A |
ALXO covered call risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
ALXO covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on ALXO. 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.
When traders use covered call on ALXO
Covered calls on ALXO are an income strategy run on existing ALXO stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
ALXO thesis for this covered call
The market-implied 1-standard-deviation range for ALXO extends from approximately $0.68 on the downside to $3.46 on the upside. A ALXO covered call collects premium on an existing long ALXO position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether ALXO will breach that level within the expiration window. Current ALXO IV rank near 45.61% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on ALXO should anchor more to the directional view and the expected-move geometry. As a Healthcare name, ALXO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALXO-specific events.
ALXO 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. ALXO positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALXO alongside the broader basket even when ALXO-specific fundamentals are unchanged. Short-premium structures like a covered call on ALXO carry tail risk when realized volatility exceeds the implied move; review historical ALXO earnings reactions and macro stress periods before sizing. Always rebuild the position from current ALXO chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on ALXO?
- A covered call on ALXO is the covered call strategy applied to ALXO (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 ALXO stock trading near $2.07, the strikes shown on this page are snapped to the nearest listed ALXO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ALXO 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 ALXO covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 233.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ALXO covered call?
- The breakeven for the ALXO covered call priced on this page is no defined breakeven on the modeled curve 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 ALXO market-implied 1-standard-deviation expected move is approximately 67.00%; 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 ALXO?
- Covered calls on ALXO are an income strategy run on existing ALXO 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 ALXO implied volatility affect this covered call?
- ALXO ATM IV is at 233.70% with IV rank near 45.61%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.