How are AIVL 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 AIVL covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 13.90%), the computed maximum profit is $638.00 per contract and the computed maximum loss is -$12,161.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AIVL covered call?

The breakeven for the AIVL covered call priced on this page is roughly $121.62 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 AIVL market-implied 1-standard-deviation expected move is approximately 3.99%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AIVL implied volatility affect this covered call?

AIVL ATM IV is at 13.90% with IV rank near 20.45%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

AIVL Covered Call Strategy

AIVL (WisdomTree U.S. AI Enhanced Value Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The fund is actively managed and seeks to invest primarily in equity securities selected from a universe of U.S. equities that exhibit value characteristics based on the selection results of a proprietary, quantitative AI model developed by Sub-Adviser. It will normally invest at least 80% of its net assets in securities of companies that are organized in the U.S., maintain a principal place of business in the U.S., or are traded principally on a U.S. exchange. The fund is non-diversified.

AIVL (WisdomTree U.S. AI Enhanced Value Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $396.5M, a beta of 0.82 versus the broader market, a 52-week range of 108.25-124.45, average daily share volume of 2K, a public-listing history dating back to 2006. These structural characteristics shape how AIVL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.82 places AIVL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AIVL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on AIVL?

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 AIVL snapshot

As of May 15, 2026, spot at $122.28, ATM IV 13.90%, IV rank 20.45%, expected move 3.99%. The covered call on AIVL 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 34-day expiry.

Why this covered call structure on AIVL specifically: AIVL IV at 13.90% is on the cheap side of its 1-year range, which means a premium-selling AIVL covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 3.99% (roughly $4.87 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AIVL expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIVL should anchor to the underlying notional of $122.28 per share and to the trader's directional view on AIVL etf.

AIVL covered call setup

The AIVL 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 AIVL near $122.28, the first option leg uses a $128.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIVL chain at a 34-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 AIVL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$122.28	long
Sell 1	Call	$128.00	$0.66

AIVL covered call risk and reward

Net Premium / Debit: -$12,162.00
Max Profit (per contract): $638.00
Max Loss (per contract): -$12,161.00
Breakeven(s): $121.62
Risk / Reward Ratio: 0.052

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.

AIVL covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on AIVL. 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%	-$12,161.00
$27.05	-77.9%	-$9,457.43
$54.08	-55.8%	-$6,753.86
$81.12	-33.7%	-$4,050.30
$108.15	-11.6%	-$1,346.73
$135.19	+10.6%	+$638.00
$162.22	+32.7%	+$638.00
$189.26	+54.8%	+$638.00
$216.30	+76.9%	+$638.00
$243.33	+99.0%	+$638.00

When traders use covered call on AIVL

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

AIVL thesis for this covered call

The market-implied 1-standard-deviation range for AIVL extends from approximately $117.41 on the downside to $127.15 on the upside. A AIVL covered call collects premium on an existing long AIVL position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether AIVL will breach that level within the expiration window. Current AIVL IV rank near 20.45% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on AIVL at 13.90%. As a Financial Services name, AIVL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIVL-specific events.

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

Frequently asked questions

What is a covered call on AIVL?: A covered call on AIVL is the covered call strategy applied to AIVL (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 AIVL etf trading near $122.28, the strikes shown on this page are snapped to the nearest listed AIVL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AIVL 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 AIVL covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 13.90%), the computed maximum profit is $638.00 per contract and the computed maximum loss is -$12,161.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AIVL covered call?: The breakeven for the AIVL covered call priced on this page is roughly $121.62 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 AIVL market-implied 1-standard-deviation expected move is approximately 3.99%; 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 AIVL?: Covered calls on AIVL are an income strategy run on existing AIVL 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 AIVL implied volatility affect this covered call?: AIVL ATM IV is at 13.90% with IV rank near 20.45%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.