MGNX Covered Call Strategy

MGNX (MacroGenics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

MacroGenics, Inc., a biopharmaceutical company, develops and commercializes antibody-based therapeutics to treat cancer in the United States. Its approved product is MARGENZA (margetuximab-cmkb), a human epidermal growth factor receptor 2 (HER2) receptor antagonist indicated, in combination with chemotherapy, for the treatment of adult patients with metastatic HER2-positive breast cancer who have received two or more prior anti-HER2 regimens. The company's pipeline of immuno-oncology product candidates includes MGC018, an antibody drug conjugate (ADC), which targets solid tumors expressing B7-H3; Enoblituzumab, a monoclonal antibody that targets B7-H3; and MGD024, an investigational bispecific CD123 × CD3 DART molecule to minimize cytokine-release syndrome for patients with hematologic malignancies. It also develops Lorigerlimab, a monoclonal antibody that targets the immune checkpoints PD-1 and cytotoxic T-lymphocyte-associated protein 4; Tebotelimab, an investigational tetravalent DART molecule for PD-1 and lymphocyte-activation gene 3; Retifanlimab, an investigational monoclonal antibody targeting metastatic squamous cell carcinoma of the anal canal and metastatic non-small cell lung cancer; and IMGC936, an ADC that targets ADAM9, a cell surface protein over-expressed in various solid tumor types. Further, the company develops MGD014 and MGD020, a DART molecule to target the envelope protein of human immunodeficiency virus infected cells and CD3 on T cells; Teplizumab for the treatment of type 1 diabetes; and PRV-3279, a CD32B × CD79B DART molecule for the treatment of autoimmune indications. It has collaborations with Incyte Corporation; Zai Lab Limited; I-Mab Biopharma; and Janssen Biotech, Inc.

MGNX (MacroGenics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $219.3M, a beta of 1.08 versus the broader market, a 52-week range of 1.185-3.88, average daily share volume of 1.2M, a public-listing history dating back to 2013, approximately 341 full-time employees. These structural characteristics shape how MGNX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.08 places MGNX 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 MGNX?

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 MGNX snapshot

As of May 15, 2026, spot at $4.20, ATM IV 72.70%, IV rank 13.52%, expected move 20.84%. The covered call on MGNX 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 34-day expiry.

Why this covered call structure on MGNX specifically: MGNX IV at 72.70% is on the cheap side of its 1-year range, which means a premium-selling MGNX covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 20.84% (roughly $0.88 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MGNX expiries trade a higher absolute premium for lower per-day decay. Position sizing on MGNX should anchor to the underlying notional of $4.20 per share and to the trader's directional view on MGNX stock.

MGNX covered call setup

The MGNX 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 MGNX near $4.20, the first option leg uses a $4.41 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MGNX chain at a 34-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 MGNX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$4.20	long
Sell 1	Call	$4.41	N/A

MGNX 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.

MGNX covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on MGNX. 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 MGNX

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

MGNX thesis for this covered call

The market-implied 1-standard-deviation range for MGNX extends from approximately $3.32 on the downside to $5.08 on the upside. A MGNX covered call collects premium on an existing long MGNX position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether MGNX will breach that level within the expiration window. Current MGNX IV rank near 13.52% 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 MGNX at 72.70%. As a Healthcare name, MGNX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MGNX-specific events.

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

Frequently asked questions

What is a covered call on MGNX?: A covered call on MGNX is the covered call strategy applied to MGNX (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 MGNX stock trading near $4.20, the strikes shown on this page are snapped to the nearest listed MGNX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MGNX 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 MGNX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 72.70%), 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 MGNX covered call?: The breakeven for the MGNX 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 MGNX market-implied 1-standard-deviation expected move is approximately 20.84%; 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 MGNX?: Covered calls on MGNX are an income strategy run on existing MGNX 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 MGNX implied volatility affect this covered call?: MGNX ATM IV is at 72.70% with IV rank near 13.52%, 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.