How are BITU 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 BITU covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 60.20%), the computed maximum profit is $85.50 per contract and the computed maximum loss is -$886.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BITU covered call?

The breakeven for the BITU covered call priced on this page is roughly $8.88 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 BITU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.26%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BITU implied volatility affect this covered call?

BITU ATM IV is at 60.20% with IV rank near 10.25%, 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.

BITU Covered Call Strategy

BITU (ProShares - Ultra Bitcoin ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.

This fund endeavors to provide investors with daily returns that are two times (2x) the performance of the Bloomberg Bitcoin Index on a given day. This measurement is taken prior to the deduction of any fees or operational expenses.

BITU (ProShares - Ultra Bitcoin ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $223.1M, a beta of 3.35 versus the broader market, a 52-week range of 7.92-64.53, average daily share volume of 4.4M, a public-listing history dating back to 2024. These structural characteristics shape how BITU etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.35 indicates BITU has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. BITU pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on BITU?

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.

BITU snapshot

As of August 14, 2026, spot at $9.00, ATM IV 60.20%, IV rank 10.25%, expected move 17.26%. The covered call on BITU 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 BITU specifically: BITU IV at 60.20% is on the cheap side of its 1-year range, which means a premium-selling BITU covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 17.26% (roughly $1.55 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 BITU expiries trade a higher absolute premium for lower per-day decay. Position sizing on BITU should anchor to the underlying notional of $9.00 per share and to the trader's directional view on BITU etf.

BITU covered call setup

The BITU 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 BITU at $9.00 on that close, the first option leg uses a $9.73 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BITU 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 BITU shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$9.00	long
Sell 1	Call	$9.73	$0.13

BITU covered call risk and reward

Net Premium / Debit: -$887.50
Max Profit (per contract): $85.50
Max Loss (per contract): -$886.50
Breakeven(s): $8.88
Risk / Reward Ratio: 0.096

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.

BITU covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on BITU. 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%	-$886.50
$2.00	-77.8%	-$687.62
$3.99	-55.7%	-$488.73
$5.98	-33.6%	-$289.85
$7.97	-11.5%	-$90.96
$9.95	+10.6%	+$85.50
$11.94	+32.7%	+$85.50
$13.93	+54.8%	+$85.50
$15.92	+76.9%	+$85.50
$17.91	+99.0%	+$85.50

When traders use covered call on BITU

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

BITU thesis for this covered call

The market-implied 1-standard-deviation range for BITU extends from approximately $7.45 on the downside to $10.55 on the upside. A BITU covered call collects premium on an existing long BITU position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether BITU will breach that level within the expiration window. Current BITU IV rank near 10.25% 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 BITU at 60.20%. As a Financial Services name, BITU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BITU-specific events.

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

Frequently asked questions

What is a covered call on BITU?: A covered call on BITU is the covered call strategy applied to BITU (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 BITU etf at $9.00 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BITU chain strike and the premiums come straight from that session's bid/ask midpoint.
How are BITU 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 BITU covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 60.20%), the computed maximum profit is $85.50 per contract and the computed maximum loss is -$886.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BITU covered call?: The breakeven for the BITU covered call priced on this page is roughly $8.88 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 BITU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.26%; 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 BITU?: Covered calls on BITU are an income strategy run on existing BITU 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 BITU implied volatility affect this covered call?: BITU ATM IV is at 60.20% with IV rank near 10.25%, 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.