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Best Options Strategy for MDGL

By Dennis Bosmans · Updated 2026-07-02 · 2 min read · Risk disclaimer

Looking for the best options strategy for Madrigal Pharmaceuticals, Inc. (MDGL)? There is no single answer — the right play depends on your outlook, your risk tolerance and current implied volatility. Below, our free engine shows the highest-scoring defined-risk strategy on the live MDGL option chain right now, and a simple map from your view on MDGL to the strategy that fits it. Model any of them in the calculator before you trade.

About MDGL

Madrigal Pharmaceuticals, Inc. (MDGL) is a major company in Biotechnology. Options traders on MDGL tend to watch , since these can drive large moves in the share price.

About Madrigal Pharmaceuticals, Inc.

# About Madrigal Pharmaceuticals, Inc.

Madrigal Pharmaceuticals is a biopharmaceutical company developing treatments for metabolic dysfunction-associated steatohepatitis, commonly known as MASH. The condition involves fat accumulation and inflammation in the liver tied to metabolic problems. The company's primary asset is Rezdiffra, a specialized medication that works as a thyroid hormone receptor beta agonist designed to target liver function directly. Founded in 2016 and based in West Conshohocken, Pennsylvania, the company concentrates its efforts on addressing this liver disease in the U.S. market.

Madrigal generates revenue through commercialization of Rezdiffra for patients with MASH, which represents a significant therapeutic area given the prevalence of metabolic liver disease. The company operates within the specialty pharmaceutical segment, targeting a patient population that previously lacked approved treatment options. Its market focuses on the United States healthcare system, where it sells through distribution channels to reach hepatologists, gastroenterologists, and other relevant specialists treating MASH patients.

Today's top-scoring strategy for MDGL

Our engine ranks defined-risk strategies on the live MDGL chain by probability of profit and risk/reward, then surfaces the best-scoring one. It is an educational illustration, not advice.

Bull Put Credit Spread bullish
Price: $525.36Implied volatility: 32%Expiration: 2026-07-17 (14d)
ActionQtyTypeStrikePremium
BuyPUT$470$0.61
SellPUT$500$4.07
P/L at expiry vs today At expiry Today ±1σ
$407$498$588
Max Profit
$346
Max Loss
−$2,654
Net Credit (received)
$346
Prob. of Profit
81%
Breakeven(s)
$496.54
Implied Vol (ATM)
32%
Position Greeks
Δ
17.13
Γ
−0.621
Θ
24.04
ν
−21.44
Time decay (price held)
Implied-volatility skew

Simulation

Forward simulation of 6,000 lognormal price paths to expiration — not a historical backtest.

Win rate
81%
Mean P/L
$8
Median
$346
Exp. move (1σ)
6%
5th pct
−$2,266
25th pct
$346
75th pct
$346
95th pct
$346
$-2617$-1154$309
Analyze MDGL in the calculator → Share this pick ↗

Illustrative example at MDGL's latest available price, computed with the same engine as the tool. Live option fills and the real IV skew refresh during US market hours.

Implied volatility

MDGL is currently trading with moderate implied volatility, broadly in line with other large-cap stocks. On the options we scanned that was around 32% implied volatility, and higher implied volatility means richer premiums and wider expected moves.

Options on MDGL currently price in about 32% implied volatility, versus roughly 43% the stock has actually realised over the past month. That makes options relatively cheap — an edge for strategies that buy premium, such as long calls, long puts and debit spreads.

Off that volatility, the options market is pricing a move of about ±$33.24 (±6%) in MDGL by 2026-07-17 — a range of roughly $492 to $559. Strikes inside that band hold most of the premium and see most of the action.

Across strikes, downside puts on MDGL trade at a higher implied volatility than upside calls — the market is paying up for crash protection. That skew favours selling put spreads or buying calls over symmetric trades.

Earnings & IV crush

MDGL's next earnings report is due around August 5, 2026. Options that expire after it price in a binary move, so their implied volatility is elevated and usually collapses right after the announcement — an "IV crush". If your expiration falls before this date, the trade sidesteps the event.

Key figures

Market cap
$12.2B
Beta (vs market)
-1.06
52-week range
$284.02–$615.00 (73% up the range)
Short interest
19.3% of float · 14.1 days to cover

With 19.3% of MDGL's float sold short, squeeze and gap risk are elevated — one reason its options can stay expensive.

How to choose an options strategy for MDGL

Start with your outlook on MDGL, then match it to a defined-risk structure. Here are the most common choices and when each makes sense:

Bullish

You expect MDGL to rise

Buy a call for leverage with capped risk, or a bull call spread to lower the cost and breakeven when you have a target price.

Long Call → Bull Call Spread →

Bearish

You expect MDGL to fall

Buy a put to profit from a decline with defined risk, or a bear put spread to cheapen the trade when you expect a measured move down.

Long Put → Bear Put Spread →

Neutral

You expect MDGL to trade in a range

Sell an iron condor to collect premium while MDGL stays between two strikes, or write a covered call against shares you already own.

Iron Condor → Covered Call →

How we pick the best strategy

For each ticker we pull the live option chain, build every supported strategy around the at-the-money strikes, and score them on probability of profit, risk/reward and capital efficiency — favouring defined-risk structures where the maximum loss is known up front. Methodology →

Open MDGL in the free calculator →

Frequently asked questions

What is the best options strategy for MDGL?

It depends on your outlook. Bullish traders often use a long call or bull call spread on MDGL; bearish traders a long put or bear put spread; neutral traders an iron condor or covered call. Our live scan above shows the current highest-scoring defined-risk play.

Are MDGL options liquid enough to trade?

Madrigal Pharmaceuticals, Inc. (MDGL) is among the most actively-traded US options, which usually means tight bid/ask spreads and plenty of strikes and expirations — though you should always check the open interest and spread on the exact contract.

How much money do I need to trade MDGL options?

Buying a single MDGL call or put can cost as little as the premium (often one to a few hundred dollars), while income strategies like a cash-secured put need enough capital to buy 100 shares if assigned.

Is this financial advice?

No. Everything here is educational and uses delayed, third-party data. It is not a recommendation to trade MDGL or any security. Do your own research.

What does Madrigal Pharmaceuticals, Inc. do?

Madrigal Pharmaceuticals, Inc. (MDGL) operates in the Biotechnology industry. The "About Madrigal Pharmaceuticals, Inc." section above gives a fuller picture of what the company does and how it earns money.

Does Madrigal Pharmaceuticals, Inc. pay a dividend?

Madrigal Pharmaceuticals, Inc. does not currently pay a dividend, so there is no ex-dividend assignment risk to plan around for options strategies.

When does Madrigal Pharmaceuticals, Inc. next report earnings?

Madrigal Pharmaceuticals, Inc.'s next earnings are expected around August 5, 2026. Implied volatility usually climbs into the report and drops sharply afterwards (IV crush) — important for any options position held over the date.

Tickers related to MDGL

Comparing MDGL with similar names can help you choose the best options strategy:

BBIOBridgeBio Pharma, Inc.

Company information

Headquarters
Four Tower Bridge, 200 Barr Harbor Drive Suite 200, West Conshohocken, PA, 19428, United States
Industry
Biotechnology
Employees
915
CEO
Mr. William J. Sibold
Phone
267 824 2827
Website
www.madrigalpharma.com
Investor relations
ir.syntapharma.com/phoenix.zhtml?c=147988&p=irol-irhome

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