How are AIYY 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 AIYY covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 70.90%), the computed maximum profit is $57.50 per contract and the computed maximum loss is -$741.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AIYY covered call?

The breakeven for the AIYY covered call priced on this page is roughly $7.43 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AIYY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 20.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AIYY implied volatility affect this covered call?

AIYY ATM IV is at 70.90% with IV rank near 14.09%, 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.

AIYY Covered Call Strategy

AIYY (YieldMax AI Option Income Strategy ETF), in the Financial Services sector, (Asset Management - Income industry), listed on AMEX.

The YieldMax AI Option Income Strategy ETF (AIYY) operates as an actively managed exchange-traded fund, focused on generating regular weekly income. It achieves this by employing a strategy of selling call options or call spreads on an underlying asset related to artificial intelligence (AI). This approach is designed to both harvest premiums from the option sales and provide investors with exposure to the potential upward movement in the AI asset's price.

AIYY (YieldMax AI Option Income Strategy ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $33.8M, a beta of 1.54 versus the broader market, a 52-week range of 6.95-29.7, average daily share volume of 81K, a public-listing history dating back to 2023. These structural characteristics shape how AIYY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.54 indicates AIYY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. AIYY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on AIYY?

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.

AIYY snapshot

As of August 14, 2026, spot at $7.55, ATM IV 70.90%, IV rank 14.09%, expected move 20.33%. The covered call on AIYY below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.

Why this covered call structure on AIYY specifically: AIYY IV at 70.90% is on the cheap side of its 1-year range, which means a premium-selling AIYY covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 20.33% (roughly $1.53 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AIYY expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIYY should anchor to the underlying notional of $7.55 per share and to the trader's directional view on AIYY etf.

AIYY covered call setup

The AIYY covered call below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AIYY at $7.55 on that close, the first option leg uses a $8.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIYY chain at a 7-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 AIYY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$7.55	long
Sell 1	Call	$8.00	$0.13

AIYY covered call risk and reward

Net Premium / Debit: -$742.50
Max Profit (per contract): $57.50
Max Loss (per contract): -$741.50
Breakeven(s): $7.43
Risk / Reward Ratio: 0.078

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.

AIYY covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on AIYY. 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	-99.9%	-$741.50
$1.68	-77.8%	-$574.68
$3.35	-55.7%	-$407.85
$5.01	-33.6%	-$241.03
$6.68	-11.5%	-$74.20
$8.35	+10.6%	+$57.50
$10.02	+32.7%	+$57.50
$11.69	+54.8%	+$57.50
$13.36	+76.9%	+$57.50
$15.02	+99.0%	+$57.50

When traders use covered call on AIYY

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

AIYY thesis for this covered call

The market-implied 1-standard-deviation range for AIYY extends from approximately $6.02 on the downside to $9.08 on the upside. A AIYY covered call collects premium on an existing long AIYY position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether AIYY will breach that level within the expiration window. Current AIYY IV rank near 14.09% 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 AIYY at 70.90%. As a Financial Services name, AIYY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIYY-specific events.

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

Frequently asked questions

What is a covered call on AIYY?: A covered call on AIYY is the covered call strategy applied to AIYY (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 AIYY etf at $7.55 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AIYY chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AIYY 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 AIYY covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 70.90%), the computed maximum profit is $57.50 per contract and the computed maximum loss is -$741.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AIYY covered call?: The breakeven for the AIYY covered call priced on this page is roughly $7.43 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AIYY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 20.33%; 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 AIYY?: Covered calls on AIYY are an income strategy run on existing AIYY 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 AIYY implied volatility affect this covered call?: AIYY ATM IV is at 70.90% with IV rank near 14.09%, 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.