AMOM Covered Call Strategy
AMOM (QRAFT AI-Enhanced U.S. Large Cap Momentum ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund is an actively-managed ETF that seeks to achieve its investment objective by utilizing an investment strategy enhanced by the use of artificial intelligence. The fund invests at least 80% of its net assets, plus the amounts of any borrowings for investment purposes, in securities of U.S.-listed large capitalization companies. The Adviser consults a database generated by Qraft's AI Quantitative Investment System, which automatically evaluates and filters data according to parameters supporting a particular investment thesis. The fund is non-diversified.
AMOM (QRAFT AI-Enhanced U.S. Large Cap Momentum ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $30.7M, a beta of 1.43 versus the broader market, a 52-week range of 41.3-59.05, average daily share volume of 4K, a public-listing history dating back to 2019. These structural characteristics shape how AMOM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.43 indicates AMOM has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. AMOM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on AMOM?
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 AMOM snapshot
As of May 15, 2026, spot at $57.55, ATM IV 29.70%, IV rank 3.40%, expected move 8.51%. The covered call on AMOM 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 63-day expiry.
Why this covered call structure on AMOM specifically: AMOM IV at 29.70% is on the cheap side of its 1-year range, which means a premium-selling AMOM covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.51% (roughly $4.90 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AMOM expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMOM should anchor to the underlying notional of $57.55 per share and to the trader's directional view on AMOM etf.
AMOM covered call setup
The AMOM 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 AMOM near $57.55, the first option leg uses a $60.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMOM chain at a 63-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 AMOM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $57.55 | long |
| Sell 1 | Call | $60.00 | $1.28 |
AMOM covered call risk and reward
- Net Premium / Debit
- -$5,627.50
- Max Profit (per contract)
- $372.50
- Max Loss (per contract)
- -$5,626.50
- Breakeven(s)
- $56.28
- Risk / Reward Ratio
- 0.066
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.
AMOM covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on AMOM. 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% | -$5,626.50 |
| $12.73 | -77.9% | -$4,354.15 |
| $25.46 | -55.8% | -$3,081.80 |
| $38.18 | -33.7% | -$1,809.44 |
| $50.90 | -11.5% | -$537.09 |
| $63.63 | +10.6% | +$372.50 |
| $76.35 | +32.7% | +$372.50 |
| $89.07 | +54.8% | +$372.50 |
| $101.80 | +76.9% | +$372.50 |
| $114.52 | +99.0% | +$372.50 |
When traders use covered call on AMOM
Covered calls on AMOM are an income strategy run on existing AMOM etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
AMOM thesis for this covered call
The market-implied 1-standard-deviation range for AMOM extends from approximately $52.65 on the downside to $62.45 on the upside. A AMOM covered call collects premium on an existing long AMOM position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether AMOM will breach that level within the expiration window. Current AMOM IV rank near 3.40% 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 AMOM at 29.70%. As a Financial Services name, AMOM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMOM-specific events.
AMOM 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. AMOM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AMOM alongside the broader basket even when AMOM-specific fundamentals are unchanged. Short-premium structures like a covered call on AMOM carry tail risk when realized volatility exceeds the implied move; review historical AMOM earnings reactions and macro stress periods before sizing. Always rebuild the position from current AMOM chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on AMOM?
- A covered call on AMOM is the covered call strategy applied to AMOM (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 AMOM etf trading near $57.55, the strikes shown on this page are snapped to the nearest listed AMOM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AMOM 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 AMOM covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 29.70%), the computed maximum profit is $372.50 per contract and the computed maximum loss is -$5,626.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AMOM covered call?
- The breakeven for the AMOM covered call priced on this page is roughly $56.28 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 AMOM market-implied 1-standard-deviation expected move is approximately 8.51%; 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 AMOM?
- Covered calls on AMOM are an income strategy run on existing AMOM 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 AMOM implied volatility affect this covered call?
- AMOM ATM IV is at 29.70% with IV rank near 3.40%, 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.