How are BIS 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 BIS covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 47.20%), the computed maximum profit is $91.50 per contract and the computed maximum loss is -$1,207.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BIS covered call?

The breakeven for the BIS covered call priced on this page is roughly $12.09 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 BIS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BIS implied volatility affect this covered call?

BIS ATM IV is at 47.20% with IV rank near 9.75%, 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.

BIS Covered Call Strategy

BIS (ProShares - UltraShort Nasdaq Biotechnology), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.

The ProShares UltraShort Nasdaq Biotechnology fund is engineered to achieve daily returns that are precisely two times the inverse (-2x) of the Nasdaq Biotechnology Index's daily performance. This objective is measured before accounting for any associated fees and operational expenses.

BIS (ProShares - UltraShort Nasdaq Biotechnology) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $2.0M, a beta of -1.18 versus the broader market, a 52-week range of 12.3-29.74, average daily share volume of 8K, a public-listing history dating back to 2010, approximately 98 full-time employees. These structural characteristics shape how BIS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -1.18 indicates BIS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. BIS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on BIS?

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.

BIS snapshot

As of August 14, 2026, spot at $12.66, ATM IV 47.20%, IV rank 9.75%, expected move 13.53%. The covered call on BIS 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 35-day expiry.

Why this covered call structure on BIS specifically: BIS IV at 47.20% is on the cheap side of its 1-year range, which means a premium-selling BIS covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 13.53% (roughly $1.71 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BIS expiries trade a higher absolute premium for lower per-day decay. Position sizing on BIS should anchor to the underlying notional of $12.66 per share and to the trader's directional view on BIS etf.

BIS covered call setup

The BIS 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 BIS at $12.66 on that close, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BIS chain at a 35-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 BIS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$12.66	long
Sell 1	Call	$13.00	$0.58

BIS covered call risk and reward

Net Premium / Debit: -$1,208.50
Max Profit (per contract): $91.50
Max Loss (per contract): -$1,207.50
Breakeven(s): $12.09
Risk / Reward Ratio: 0.076

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.

BIS covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on BIS. 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%	-$1,207.50
$2.81	-77.8%	-$927.69
$5.61	-55.7%	-$647.88
$8.40	-33.6%	-$368.07
$11.20	-11.5%	-$88.26
$14.00	+10.6%	+$91.50
$16.80	+32.7%	+$91.50
$19.60	+54.8%	+$91.50
$22.39	+76.9%	+$91.50
$25.19	+99.0%	+$91.50

When traders use covered call on BIS

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

BIS thesis for this covered call

The market-implied 1-standard-deviation range for BIS extends from approximately $10.95 on the downside to $14.37 on the upside. A BIS covered call collects premium on an existing long BIS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether BIS will breach that level within the expiration window. Current BIS IV rank near 9.75% 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 BIS at 47.20%. As a Financial Services name, BIS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BIS-specific events.

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

Frequently asked questions

What is a covered call on BIS?: A covered call on BIS is the covered call strategy applied to BIS (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 BIS etf at $12.66 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BIS chain strike and the premiums come straight from that session's bid/ask midpoint.
How are BIS 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 BIS covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 47.20%), the computed maximum profit is $91.50 per contract and the computed maximum loss is -$1,207.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BIS covered call?: The breakeven for the BIS covered call priced on this page is roughly $12.09 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 BIS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.53%; 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 BIS?: Covered calls on BIS are an income strategy run on existing BIS 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 BIS implied volatility affect this covered call?: BIS ATM IV is at 47.20% with IV rank near 9.75%, 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.