AGQ Covered Call Strategy
AGQ (ProShares - Ultra Silver), in the Financial Services sector, (Asset Management industry), listed on AMEX.
ProShares Ultra Silver seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the Bloomberg Silver Subindex.
AGQ (ProShares - Ultra Silver) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.41B, a beta of 0.30 versus the broader market, a 52-week range of 38-431.47, average daily share volume of 4.6M, a public-listing history dating back to 2008. These structural characteristics shape how AGQ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.30 indicates AGQ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a covered call on AGQ?
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 AGQ snapshot
As of May 15, 2026, spot at $117.66, ATM IV 111.71%, IV rank 38.24%, expected move 32.03%. The covered call on AGQ 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 28-day expiry.
Why this covered call structure on AGQ specifically: AGQ IV at 111.71% is mid-range versus its 1-year history, so the credit collected on a AGQ covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 32.03% (roughly $37.68 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AGQ expiries trade a higher absolute premium for lower per-day decay. Position sizing on AGQ should anchor to the underlying notional of $117.66 per share and to the trader's directional view on AGQ etf.
AGQ covered call setup
The AGQ 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 AGQ near $117.66, the first option leg uses a $123.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AGQ chain at a 28-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 AGQ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $117.66 | long |
| Sell 1 | Call | $123.50 | $12.30 |
AGQ covered call risk and reward
- Net Premium / Debit
- -$10,536.00
- Max Profit (per contract)
- $1,814.00
- Max Loss (per contract)
- -$10,535.00
- Breakeven(s)
- $105.36
- Risk / Reward Ratio
- 0.172
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.
AGQ covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on AGQ. 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% | -$10,535.00 |
| $26.02 | -77.9% | -$7,933.58 |
| $52.04 | -55.8% | -$5,332.17 |
| $78.05 | -33.7% | -$2,730.75 |
| $104.07 | -11.6% | -$129.33 |
| $130.08 | +10.6% | +$1,814.00 |
| $156.10 | +32.7% | +$1,814.00 |
| $182.11 | +54.8% | +$1,814.00 |
| $208.12 | +76.9% | +$1,814.00 |
| $234.14 | +99.0% | +$1,814.00 |
When traders use covered call on AGQ
Covered calls on AGQ are an income strategy run on existing AGQ etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
AGQ thesis for this covered call
The market-implied 1-standard-deviation range for AGQ extends from approximately $79.98 on the downside to $155.34 on the upside. A AGQ covered call collects premium on an existing long AGQ position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether AGQ will breach that level within the expiration window. Current AGQ IV rank near 38.24% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on AGQ should anchor more to the directional view and the expected-move geometry. As a Financial Services name, AGQ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AGQ-specific events.
AGQ 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. AGQ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AGQ alongside the broader basket even when AGQ-specific fundamentals are unchanged. Short-premium structures like a covered call on AGQ carry tail risk when realized volatility exceeds the implied move; review historical AGQ earnings reactions and macro stress periods before sizing. Always rebuild the position from current AGQ chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on AGQ?
- A covered call on AGQ is the covered call strategy applied to AGQ (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 AGQ etf trading near $117.66, the strikes shown on this page are snapped to the nearest listed AGQ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AGQ 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 AGQ covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 111.71%), the computed maximum profit is $1,814.00 per contract and the computed maximum loss is -$10,535.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AGQ covered call?
- The breakeven for the AGQ covered call priced on this page is roughly $105.36 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 AGQ market-implied 1-standard-deviation expected move is approximately 32.03%; 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 AGQ?
- Covered calls on AGQ are an income strategy run on existing AGQ 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 AGQ implied volatility affect this covered call?
- AGQ ATM IV is at 111.71% with IV rank near 38.24%, 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.