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 52.40%), the computed maximum profit is $557.50 per contract and the computed maximum loss is -$5,441.50 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 $54.43 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 15.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TGTX implied volatility affect this covered call?

TGTX ATM IV is at 52.40% with IV rank near 16.98%, 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.

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 $8.55B, a trailing P/E of 17.46, a beta of 1.68 versus the broader market, a 52-week range of 25.28-57.377, average daily share volume of 2.3M, 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 June 30, 2026, spot at $55.50, ATM IV 52.40%, IV rank 16.98%, expected move 15.02%. 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 17-day expiry.

Why this covered call structure on TGTX specifically: TGTX IV at 52.40% 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 15.02% (roughly $8.34 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 TGTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on TGTX should anchor to the underlying notional of $55.50 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 $55.50, 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 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 TGTX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$55.50	long
Sell 1	Call	$60.00	$1.08

TGTX covered call risk and reward

Net Premium / Debit: -$5,442.50
Max Profit (per contract): $557.50
Max Loss (per contract): -$5,441.50
Breakeven(s): $54.43
Risk / Reward Ratio: 0.102

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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$5,441.50
$12.28	-77.9%	-$4,214.47
$24.55	-55.8%	-$2,987.45
$36.82	-33.7%	-$1,760.42
$49.09	-11.5%	-$533.40
$61.36	+10.6%	+$557.50
$73.63	+32.7%	+$557.50
$85.90	+54.8%	+$557.50
$98.17	+76.9%	+$557.50
$110.44	+99.0%	+$557.50

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 $47.16 on the downside to $63.84 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 16.98% 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 52.40%. 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 $55.50, 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 52.40%), the computed maximum profit is $557.50 per contract and the computed maximum loss is -$5,441.50 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 $54.43 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 15.02%; 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 52.40% with IV rank near 16.98%, 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.