TGTX Covered Call Strategy
TGTX (TG Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
TG Therapeutics, Inc., a commercial stage biopharmaceutical company, focuses on the acquisition, development, and commercialization of novel treatments for B-cell malignancies and autoimmune diseases. Its therapeutic product candidates include Ublituximab, an investigational glycoengineered monoclonal antibody for the treatment of B-cell non-hodgkin lymphoma, chronic lymphocytic leukemia (CLL), and relapsing forms of multiple sclerosis; and Umbralisib, an oral inhibitor of PI3K-delta and CK1-epsilon for the treatment of CLL, marginal zone lymphoma, and follicular lymphoma. The company also develops Cosibelimab, a human monoclonal antibody of IgG1 subtype that binds to programmed death-ligand 1 (PD-L1) and blocks its interactions with PD-1 and B7.1 receptors; TG-1701 is an orally available and covalently-bound Bruton's tyrosine kinase (BTK) inhibitor that exhibits selectivity to BTK compared to ibrutinib in in vitro kinase screening; and TG-1801, a bispecific CD47 and CD19 antibody. In addition, it has various licensed preclinical programs for BET, interleukin-1 receptor associated kinase-4, and GITR; and collaboration agreements with Checkpoint Therapeutics, Inc., Jiangsu Hengrui Medicine Co., Novimmune SA, Ligand Pharmaceuticals Incorporated, and Jubilant Biosys. The company has strategic alliances with LFB Biotechnologies S.A.S; GTC Biotherapeutics; LFB/GTC LLC; Ildong Pharmaceutical Co. Ltd.; and Rhizen Pharmaceuticals, S A.
TGTX (TG Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $6.53B, a trailing P/E of 13.34, a beta of 1.68 versus the broader market, a 52-week range of 25.28-44.65, average daily share volume of 2.1M, a public-listing history dating back to 2010, approximately 352 full-time employees. These structural characteristics shape how TGTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.68 indicates TGTX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a covered call on TGTX?
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 TGTX snapshot
As of May 15, 2026, spot at $39.50, ATM IV 44.00%, IV rank 5.52%, expected move 12.61%. The covered call on TGTX 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 TGTX specifically: TGTX IV at 44.00% is on the cheap side of its 1-year range, which means a premium-selling TGTX covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 12.61% (roughly $4.98 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 TGTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on TGTX should anchor to the underlying notional of $39.50 per share and to the trader's directional view on TGTX stock.
TGTX covered call setup
The TGTX 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 TGTX near $39.50, the first option leg uses a $41.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TGTX 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 TGTX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $39.50 | long |
| Sell 1 | Call | $41.00 | $1.68 |
TGTX covered call risk and reward
- Net Premium / Debit
- -$3,782.50
- Max Profit (per contract)
- $317.50
- Max Loss (per contract)
- -$3,781.50
- Breakeven(s)
- $37.83
- Risk / Reward Ratio
- 0.084
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.
TGTX covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on TGTX. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$3,781.50 |
| $8.74 | -77.9% | -$2,908.24 |
| $17.48 | -55.8% | -$2,034.99 |
| $26.21 | -33.7% | -$1,161.73 |
| $34.94 | -11.5% | -$288.47 |
| $43.67 | +10.6% | +$317.50 |
| $52.41 | +32.7% | +$317.50 |
| $61.14 | +54.8% | +$317.50 |
| $69.87 | +76.9% | +$317.50 |
| $78.60 | +99.0% | +$317.50 |
When traders use covered call on TGTX
Covered calls on TGTX are an income strategy run on existing TGTX stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
TGTX thesis for this covered call
The market-implied 1-standard-deviation range for TGTX extends from approximately $34.52 on the downside to $44.48 on the upside. A TGTX covered call collects premium on an existing long TGTX position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether TGTX will breach that level within the expiration window. Current TGTX IV rank near 5.52% 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 TGTX at 44.00%. As a Healthcare name, TGTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TGTX-specific events.
TGTX 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. TGTX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TGTX alongside the broader basket even when TGTX-specific fundamentals are unchanged. Short-premium structures like a covered call on TGTX carry tail risk when realized volatility exceeds the implied move; review historical TGTX earnings reactions and macro stress periods before sizing. Always rebuild the position from current TGTX chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on TGTX?
- A covered call on TGTX is the covered call strategy applied to TGTX (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 TGTX stock trading near $39.50, the strikes shown on this page are snapped to the nearest listed TGTX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TGTX 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 TGTX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 44.00%), the computed maximum profit is $317.50 per contract and the computed maximum loss is -$3,781.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TGTX covered call?
- The breakeven for the TGTX covered call priced on this page is roughly $37.83 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 TGTX market-implied 1-standard-deviation expected move is approximately 12.61%; 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 TGTX?
- Covered calls on TGTX are an income strategy run on existing TGTX 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 TGTX implied volatility affect this covered call?
- TGTX ATM IV is at 44.00% with IV rank near 5.52%, 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.