How are ACIO 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 ACIO covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 25.90%), the computed maximum profit is $301.00 per contract and the computed maximum loss is -$4,598.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ACIO covered call?

The breakeven for the ACIO covered call priced on this page is roughly $45.99 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 ACIO market-implied 1-standard-deviation expected move is approximately 7.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ACIO implied volatility affect this covered call?

ACIO ATM IV is at 25.90% with IV rank near 34.32%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

ACIO Covered Call Strategy

ACIO (Aptus Collared Income Opportunity ETF), in the Financial Services sector, (Asset Management - Income industry), listed on CBOE.

The Aptus Collared Income Opportunity ETF (ACIO) is an actively managed fund with the dual objective of achieving both capital growth and a consistent income stream. This strategy primarily involves investing in a focused portfolio of 70-80 large-capitalization individual stocks, on which it then sells covered call options to generate additional income. A core feature of ACIO is its commitment to minimizing downside risk through the strategic purchase of long put options tied to a broad-based market index, offering a layer of protection against significant market declines.

ACIO (Aptus Collared Income Opportunity ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $2.38B, a beta of 0.72 versus the broader market, a 52-week range of 41.13-47.14, average daily share volume of 123K, a public-listing history dating back to 2019. These structural characteristics shape how ACIO etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.72 places ACIO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ACIO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on ACIO?

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 ACIO snapshot

As of June 30, 2026, spot at $46.20, ATM IV 25.90%, IV rank 34.32%, expected move 7.43%. The covered call on ACIO 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 17-day expiry.

Why this covered call structure on ACIO specifically: ACIO IV at 25.90% is mid-range versus its 1-year history, so the credit collected on a ACIO covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 7.43% (roughly $3.43 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ACIO expiries trade a higher absolute premium for lower per-day decay. Position sizing on ACIO should anchor to the underlying notional of $46.20 per share and to the trader's directional view on ACIO etf.

ACIO covered call setup

The ACIO 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 ACIO near $46.20, the first option leg uses a $49.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ACIO chain at a 17-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 ACIO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$46.20	long
Sell 1	Call	$49.00	$0.21

ACIO covered call risk and reward

Net Premium / Debit: -$4,599.00
Max Profit (per contract): $301.00
Max Loss (per contract): -$4,598.00
Breakeven(s): $45.99
Risk / Reward Ratio: 0.065

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.

ACIO covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on ACIO. 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%	-$4,598.00
$10.22	-77.9%	-$3,576.60
$20.44	-55.8%	-$2,555.21
$30.65	-33.7%	-$1,533.81
$40.87	-11.5%	-$512.41
$51.08	+10.6%	+$301.00
$61.29	+32.7%	+$301.00
$71.51	+54.8%	+$301.00
$81.72	+76.9%	+$301.00
$91.94	+99.0%	+$301.00

When traders use covered call on ACIO

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

ACIO thesis for this covered call

The market-implied 1-standard-deviation range for ACIO extends from approximately $42.77 on the downside to $49.63 on the upside. A ACIO covered call collects premium on an existing long ACIO position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether ACIO will breach that level within the expiration window. Current ACIO IV rank near 34.32% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on ACIO should anchor more to the directional view and the expected-move geometry. As a Financial Services name, ACIO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ACIO-specific events.

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

Frequently asked questions

What is a covered call on ACIO?: A covered call on ACIO is the covered call strategy applied to ACIO (etf). 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 ACIO etf trading near $46.20, the strikes shown on this page are snapped to the nearest listed ACIO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ACIO 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 ACIO covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 25.90%), the computed maximum profit is $301.00 per contract and the computed maximum loss is -$4,598.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ACIO covered call?: The breakeven for the ACIO covered call priced on this page is roughly $45.99 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 ACIO market-implied 1-standard-deviation expected move is approximately 7.43%; 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 ACIO?: Covered calls on ACIO are an income strategy run on existing ACIO etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
How does current ACIO implied volatility affect this covered call?: ACIO ATM IV is at 25.90% with IV rank near 34.32%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.