Horizon Technology Finance Corporation (HRZN) Covered Calls
Horizon Technology Finance Corporation is a specialty finance company that provides secured loans to venture capital-backed companies in the technology, life science, healthcare information, and sustainability industries. Operating as a business development company (BDC), it seeks to maximize total returns by generating current income from debt investments and capital appreciation from warrants. The firm focuses on development-stage companies with high growth potential and proven backing.
You can sell covered calls on Horizon Technology Finance Corporation to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for HRZN (prices last updated Fri 4:16 PM ET):
| Horizon Technology Finance Corporation (HRZN) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 4.11 | -0.19 | 4.10 | 4.18 | 638K | - | 0.2 |
| Covered Calls For Horizon Technology Finance Corporation (HRZN) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| Apr 17 | 5 | 0.00 | 4.18 | 1.4% | 23.2% | |
| May 15 | 5 | 0.00 | 4.18 | 1.4% | 10.2% | |
| Subscribers get access to the full covered call chain, and more features. | ||||||
Want to make money with covered calls? Sign Up For A Free Trial
Horizon Technology Finance Corporation (HRZN) is a leading business development company (BDC) specializing in the venture debt market. It provides customized financing solutions to innovative companies that have already secured significant funding from top-tier venture capital firms.
Investment Strategy and Portfolio
The company focuses on four primary "knowledge-based" sectors: Technology, Life Science, Healthcare Information & Services, and Sustainability. Unlike traditional banks, HRZN provides "growth capital" that is typically senior-secured and includes equity warrants, providing a mix of high-yield interest income and potential upside. In early 2026, the company announced a strategic merger with Monroe Capital Corporation, which is expected to enhance its scale, diversify its portfolio, and lower its cost of capital. The combined entity remains focused on high-yielding debt with an average portfolio yield often exceeding 14%.
Competitive Landscape
In the specialized venture debt BDC space, HRZN competes with several high-profile, optionable peers. Its primary rivals include Hercules Capital (the industry leader) and TriplePoint Venture Growth BDC. Other notable competitors in the broader BDC market include Main Street Capital and Ares Capital. These companies are all active in the options market, making them popular for investors looking to hedge the inherent risks of small-cap venture lending.
Strategic Outlook and Dividends
The outlook for HRZN is driven by the health of the venture capital ecosystem and the prevailing interest rate environment. As a BDC, the company is required to distribute at least 90% of its taxable income to shareholders, resulting in a historically high monthly dividend. Following the Monroe merger, management has indicated plans for supplemental distributions to further enhance shareholder yield. Innovation at HRZN lies in its rigorous "Horizon Process" for credit underwriting, which utilizes deep industry expertise to mitigate the risks associated with lending to development-stage companies.
Management utilizes its relationship with Monroe Capital to broaden its deal sourcing and operational capabilities. For covered call writers, HRZN is an attractive underlying due to its high dividend yield and elevated implied volatility, which often translates to substantial option premiums. While the stock can be sensitive to shifts in the tech sector and credit spreads, its monthly payout schedule and the added scale from its 2026 merger provide a compelling case for income-focused portfolios looking for exposure to the innovation economy.
| Top 10 Open Interest For Apr 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV covered calls | 6. | QQQ covered calls | 1. | REPL covered calls | |
| 2. | EEM covered calls | 7. | GLD covered calls | 2. | BW covered calls | |
| 3. | NVDA covered calls | 8. | HYG covered calls | 3. | PTON covered calls | |
| 4. | KWEB covered calls | 9. | EWZ covered calls | 4. | USO covered calls | |
| 5. | SPY covered calls | 10. | TLT covered calls | 5. | WULF covered calls | |
Want more examples? HRTX Covered Calls | HSBC Covered Calls
Risk Disclosure: Trading options involves significant risk and is not suitable for all investors. The information provided on this website is for educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Nothing contained on this site is an offer to buy or sell, or a solicitation of an offer to buy or sell, any securities or financial instruments.
Covered Call Strategy Risks: While covered call writing is often considered a conservative options strategy, it is not without risk. By selling a covered call, you are limiting your potential upside profit from the underlying stock. You remain exposed to the full downside risk of owning the underlying stock. In the event of a significant decline in the stock price, the premium received may not be sufficient to offset your losses.
No Guarantee of Performance: Past performance is not indicative of future results. Any examples, calculations, or hypothetical scenarios presented on this site are for illustrative purposes only and do not guarantee future returns or outcomes. Market conditions, liquidity, and trading system failures can affect your ability to execute trades at desired prices.
You should consult with a qualified professional advisor and conduct your own due diligence before making any investment decisions. By using this website, you acknowledge that you are responsible for your own investment decisions and agree to release this site and its affiliates from any liability relating to your use of this information. See the OCC's Characteristics and Risks of Standardized Options for more info.
