How are URGN 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 URGN covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 100.70%), the computed maximum profit is $510.50 per contract and the computed maximum loss is -$2,488.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a URGN covered call?

The breakeven for the URGN covered call priced on this page is roughly $24.90 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 URGN market-implied 1-standard-deviation expected move is approximately 28.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current URGN implied volatility affect this covered call?

URGN ATM IV is at 100.70% with IV rank near 15.74%, 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.

URGN Covered Call Strategy

URGN (UroGen Pharma Ltd.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

UroGen Pharma Ltd., a biotechnology company, engages in the development and commercialization novel solutions for specialty cancers and urothelial diseases. It offers RTGel, a polymeric biocompatible and reverse thermal gelation hydrogel to improve therapeutic profiles of existing drugs; and Jelmyto for pyelocalyceal solution. The company's lead product candidate is UGN-102, which is in Phase III clinical trials for the treatment of several forms of non-muscle invasive urothelial cancer that include low-grade upper tract urothelial carcinoma and low-grade non-muscle invasive bladder cancer. It is also developing UGN-301 for the treatment of high-grade non-muscle invasive bladder cancer. The company has a license agreement with Allergan Pharmaceuticals International Limited for developing and commercializing pharmaceutical products that contain RTGel and clostridial toxins; Agenus Inc. to develop, make, use, sell, import, and commercialize products of Agenus for the treatment of cancers of the urinary tract via intravesical delivery; and strategic research collaboration with MD Anderson to advance investigational treatment for high-grade bladder cancer. UroGen Pharma Ltd. was incorporated in 2004 and is based in Princeton, New Jersey.

URGN (UroGen Pharma Ltd.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.51B, a beta of 1.59 versus the broader market, a 52-week range of 3.42-32.37, average daily share volume of 891K, a public-listing history dating back to 2017, approximately 234 full-time employees. These structural characteristics shape how URGN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.59 indicates URGN 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 URGN?

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 URGN snapshot

As of May 15, 2026, spot at $28.67, ATM IV 100.70%, IV rank 15.74%, expected move 28.87%. The covered call on URGN 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 URGN specifically: URGN IV at 100.70% is on the cheap side of its 1-year range, which means a premium-selling URGN covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 28.87% (roughly $8.28 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 URGN expiries trade a higher absolute premium for lower per-day decay. Position sizing on URGN should anchor to the underlying notional of $28.67 per share and to the trader's directional view on URGN stock.

URGN covered call setup

The URGN 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 URGN near $28.67, the first option leg uses a $30.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed URGN 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 URGN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$28.67	long
Sell 1	Call	$30.00	$3.78

URGN covered call risk and reward

Net Premium / Debit: -$2,489.50
Max Profit (per contract): $510.50
Max Loss (per contract): -$2,488.50
Breakeven(s): $24.90
Risk / Reward Ratio: 0.205

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.

URGN covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on URGN. 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%	-$2,488.50
$6.35	-77.9%	-$1,854.70
$12.69	-55.8%	-$1,220.90
$19.02	-33.6%	-$587.10
$25.36	-11.5%	+$46.70
$31.70	+10.6%	+$510.50
$38.04	+32.7%	+$510.50
$44.38	+54.8%	+$510.50
$50.71	+76.9%	+$510.50
$57.05	+99.0%	+$510.50

When traders use covered call on URGN

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

URGN thesis for this covered call

The market-implied 1-standard-deviation range for URGN extends from approximately $20.39 on the downside to $36.95 on the upside. A URGN covered call collects premium on an existing long URGN position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether URGN will breach that level within the expiration window. Current URGN IV rank near 15.74% 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 URGN at 100.70%. As a Healthcare name, URGN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to URGN-specific events.

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

Frequently asked questions

What is a covered call on URGN?: A covered call on URGN is the covered call strategy applied to URGN (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 URGN stock trading near $28.67, the strikes shown on this page are snapped to the nearest listed URGN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are URGN 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 URGN covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 100.70%), the computed maximum profit is $510.50 per contract and the computed maximum loss is -$2,488.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a URGN covered call?: The breakeven for the URGN covered call priced on this page is roughly $24.90 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 URGN market-implied 1-standard-deviation expected move is approximately 28.87%; 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 URGN?: Covered calls on URGN are an income strategy run on existing URGN 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 URGN implied volatility affect this covered call?: URGN ATM IV is at 100.70% with IV rank near 15.74%, 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.