TGTX Covered Call Strategy
TGTX (TG Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Based in New York City and established in 1993, TG Therapeutics, Inc. is a biopharmaceutical company that has advanced to the commercial stage. Its core mission revolves around the acquisition, advancement, and marketing of novel therapeutic solutions. The company's focus areas specifically include B-cell related cancers (malignancies) and various autoimmune disorders. Among its significant investigational therapeutic candidates is Ublituximab, a distinctive glycoengineered monoclonal antibody currently undergoing evaluation. It targets B-cell non-Hodgkin lymphoma, chronic lymphocytic leukemia (CLL), and the relapsing forms of multiple sclerosis. Another compound in its pipeline is Umbralisib, an orally administered inhibitor designed to block PI3K-delta and CK1-epsilon enzymes.
TGTX (TG Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $8.54B, a trailing P/E of 17.91, a beta of 1.66 versus the broader market, a 52-week range of 26.76-59.3, average daily share volume of 2.2M, a public-listing history dating back to 2010, approximately 399 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 1.66 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.
TGTX snapshot
As of September 30, 2026, spot at $56.09, ATM IV 52.50%, IV rank 15.09%, expected move 15.05%. The covered call on TGTX below is built from the September 30, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 51-day expiry.
Why this covered call structure on TGTX specifically: TGTX IV at 52.50% 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 15.05% (roughly $8.44 on the underlying). The 51-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 $56.09 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 September 30, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With TGTX at $56.09 on that close, the first option leg uses a $60.00 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 51-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 | $56.09 | long |
| Sell 1 | Call | $60.00 | $3.85 |
TGTX covered call risk and reward
- Net Premium / Debit
- -$5,224.00
- Max Profit (per contract)
- $776.00
- Max Loss (per contract)
- -$5,223.00
- Breakeven(s)
- $52.24
- Risk / Reward Ratio
- 0.149
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% | -$5,223.00 |
| $12.41 | -77.9% | -$3,982.93 |
| $24.81 | -55.8% | -$2,742.86 |
| $37.21 | -33.7% | -$1,502.79 |
| $49.61 | -11.5% | -$262.72 |
| $62.01 | +10.6% | +$776.00 |
| $74.41 | +32.7% | +$776.00 |
| $86.81 | +54.8% | +$776.00 |
| $99.22 | +76.9% | +$776.00 |
| $111.62 | +99.0% | +$776.00 |
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 $47.65 on the downside to $64.53 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 15.09% 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 52.50%. 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 at $56.09 on the September 30, 2026 close, the strikes shown on this page are snapped to the nearest listed TGTX chain strike and the premiums come straight from that session's 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 September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 52.50%), the computed maximum profit is $776.00 per contract and the computed maximum loss is -$5,223.00 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 $52.24 at expiration, derived from the September 30, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The TGTX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.05%; 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 52.50% with IV rank near 15.09%, 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.