How are TNGX 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 TNGX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 69.00%), the computed maximum profit is $295.50 per contract and the computed maximum loss is -$3,103.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TNGX covered call?

The breakeven for the TNGX covered call priced on this page is roughly $31.05 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 TNGX market-implied 1-standard-deviation expected move is approximately 19.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TNGX implied volatility affect this covered call?

TNGX ATM IV is at 69.00% with IV rank near 1.83%, 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.

TNGX Covered Call Strategy

TNGX (Tango Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Tango Therapeutics, Inc. is a biotechnology firm dedicated to the research and development of innovative cancer treatments. Their primary therapeutic candidate, TNG908, is a synthetic lethal small molecule designed to inhibit protein arginine methyltransferase 5 (PRMT5). This compound is currently being advanced as a potential therapy for cancers characterized by methylthioadenosine phosphorylase (MTAP) deletions. Additionally, their pipeline includes an Ubiquitin-specific protease 1 (USP1) inhibitor targeting BRCA1 or BRCA2-mutant cancers, and a program known as 'Target 3' which addresses STK11-mutant cancers. Tango Therapeutics maintains a strategic alliance with Gilead Sciences, Inc., focused on the identification, advancement, and commercialization of a diverse array of cancer therapies. Established in 2017, the company's operations are headquartered in Cambridge, Massachusetts.

TNGX (Tango Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $3.92B, a beta of 1.19 versus the broader market, a 52-week range of 4.8-34.39, average daily share volume of 3.9M, a public-listing history dating back to 2020, approximately 155 full-time employees. These structural characteristics shape how TNGX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.19 places TNGX 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 TNGX?

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 TNGX snapshot

As of June 29, 2026, spot at $32.22, ATM IV 69.00%, IV rank 1.83%, expected move 19.78%. The covered call on TNGX 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 18-day expiry.

Why this covered call structure on TNGX specifically: TNGX IV at 69.00% is on the cheap side of its 1-year range, which means a premium-selling TNGX covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 19.78% (roughly $6.37 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TNGX expiries trade a higher absolute premium for lower per-day decay. Position sizing on TNGX should anchor to the underlying notional of $32.22 per share and to the trader's directional view on TNGX stock.

TNGX covered call setup

The TNGX 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 TNGX near $32.22, the first option leg uses a $34.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TNGX chain at a 18-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 TNGX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$32.22	long
Sell 1	Call	$34.00	$1.18

TNGX covered call risk and reward

Net Premium / Debit: -$3,104.50
Max Profit (per contract): $295.50
Max Loss (per contract): -$3,103.50
Breakeven(s): $31.05
Risk / Reward Ratio: 0.095

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.

TNGX covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on TNGX. 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%	-$3,103.50
$7.13	-77.9%	-$2,391.21
$14.26	-55.8%	-$1,678.92
$21.38	-33.6%	-$966.63
$28.50	-11.5%	-$254.33
$35.62	+10.6%	+$295.50
$42.75	+32.7%	+$295.50
$49.87	+54.8%	+$295.50
$56.99	+76.9%	+$295.50
$64.12	+99.0%	+$295.50

When traders use covered call on TNGX

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

TNGX thesis for this covered call

The market-implied 1-standard-deviation range for TNGX extends from approximately $25.85 on the downside to $38.59 on the upside. A TNGX covered call collects premium on an existing long TNGX position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether TNGX will breach that level within the expiration window. Current TNGX IV rank near 1.83% 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 TNGX at 69.00%. As a Healthcare name, TNGX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TNGX-specific events.

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

Frequently asked questions

What is a covered call on TNGX?: A covered call on TNGX is the covered call strategy applied to TNGX (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 TNGX stock trading near $32.22, the strikes shown on this page are snapped to the nearest listed TNGX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TNGX 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 TNGX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 69.00%), the computed maximum profit is $295.50 per contract and the computed maximum loss is -$3,103.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TNGX covered call?: The breakeven for the TNGX covered call priced on this page is roughly $31.05 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 TNGX market-implied 1-standard-deviation expected move is approximately 19.78%; 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 TNGX?: Covered calls on TNGX are an income strategy run on existing TNGX 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 TNGX implied volatility affect this covered call?: TNGX ATM IV is at 69.00% with IV rank near 1.83%, 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.