Today a Covered Calls position was established in Halozyme Therapeutics Inc. (ticker HALO) when two hundred shares were purchased at $71.57 and two December 19th, 2025 monthly Call options were sold at $3.25 per share at the $70.00 strike price. So, the corresponding potential time value (aka extrinsic value) profit potential is $1.68 per share = [$3.25 Call options premium - ($71.57 stock purchase price - $70.00 strike price)]. An in-the-money Covered Calls position was established with the probability that the Calls will be in-the-money and thus the stock would be assigned at $70.00 per share on the options expiration date was 61.5% when this position was established. Halozyme does not pay a dividend and importantly, their next quarterly earnings report on February 17th, 2026 is after the December 19th, 2025 options expiration date.
Halozyme Therapeutics is a small-cap biotechnology company that has a range of auto-injector devices for subcutaneous and intramuscular delivery to patients. They have license agreements in partnership with several drug companies with 13 currently approved products. When co-formulated with drugs, their products have the potential to reduce the treatment burden for patients (minutes for subcutaneous injections versus hours for IV infusions). Also, I am very impressed by the leadership qualities of their CEO Helen Torley, who has done an outstanding job during her 11-years tenure as CEO.
If you are interested in additional information on Halozyme, their most recent presentation in conjunction with their most recent earnings report for Q3 2025 is
here.
Halozyme ranked #1 out of more than 1,200 companies analyzed by my Quantitative Value + Momentum stock screener and it met all 19 criteria in this screener, the outputs of which are shown on this chart:
As detailed below, a potential return-on-investment result is +2.5% absolute return-on-investment (equivalent to +42.8% annualized
return-on-investment for the next 21 days) if the Halozyme share price is in-the-money (i.e. above the $70.00 strike price) and the stock is therefore assigned on its December 19th, 2025 options expiration date.
The net debit buy/write limit order was executed as follows:
11/28/2025 Bought 200 shares of Halozyme Therapeutics stock @ $71.57 per share.
11/28/2025 Sold 2 HALO December 19th, 2025 $70.00 Call options @ $3.25 per share. Note: the Implied Volatility of the Calls was 32.5 when this position was established.
A possible overall performance results (including commissions) if the position is in-the-money on the options expiration date is as follows:
Halozyme Covered Calls Net Investment: $13,665.34
= ($71.57 - $3.25) * 200 shares + $1.34 commission
Net Profit Components:
(a) Options Income: +$650.66
= ($3.25 * 200 shares) - $1.34 commission
(b) Dividend Income: +$0.00
(c) Capital Appreciation (If Halozyme stock is above the $70.00 strike price at the December 19th options expiration date): -$314.00
= ($70.00 strike price - $71.57 stock purchase price) * 200 shares
Potential Total Net Profit (If stock price is in-the-money and therefore assigned at expiration): +$336.66
= (+$650.66 options income + $0.00 dividend income - $314.00 capital appreciation)
Potential Absolute Return-on-Investment (If stock price is in-the-money and therefore assigned on the 12/19/2025 options expiration date): +2.5% = +$336.66/$13,665.34
Potential Equivalent Annualized-Return-on-Investment: +42.8%
= (+$336.66/$13,665.34) * (365/21 days)
