BOIL Covered Call Strategy
BOIL (ProShares - Ultra Bloomberg Natural Gas), in the Financial Services sector, (Asset Management industry), listed on AMEX.
ProShares Ultra Bloomberg Natural Gas seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the Bloomberg Natural Gas SubindexSM
BOIL (ProShares - Ultra Bloomberg Natural Gas) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $328.9M, a beta of 4.26 versus the broader market, a 52-week range of 12.07-63.68, average daily share volume of 11.9M, a public-listing history dating back to 2011. These structural characteristics shape how BOIL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 4.26 indicates BOIL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a covered call on BOIL?
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 BOIL snapshot
As of May 15, 2026, spot at $13.68, ATM IV 86.77%, IV rank 12.62%, expected move 24.88%. The covered call on BOIL 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 28-day expiry.
Why this covered call structure on BOIL specifically: BOIL IV at 86.77% is on the cheap side of its 1-year range, which means a premium-selling BOIL covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 24.88% (roughly $3.40 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BOIL expiries trade a higher absolute premium for lower per-day decay. Position sizing on BOIL should anchor to the underlying notional of $13.68 per share and to the trader's directional view on BOIL etf.
BOIL covered call setup
The BOIL 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 BOIL near $13.68, the first option leg uses a $14.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BOIL chain at a 28-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 BOIL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $13.68 | long |
| Sell 1 | Call | $14.50 | $0.86 |
BOIL covered call risk and reward
- Net Premium / Debit
- -$1,282.00
- Max Profit (per contract)
- $168.00
- Max Loss (per contract)
- -$1,281.00
- Breakeven(s)
- $12.82
- Risk / Reward Ratio
- 0.131
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.
BOIL covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on BOIL. 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 | -99.9% | -$1,281.00 |
| $3.03 | -77.8% | -$978.64 |
| $6.06 | -55.7% | -$676.28 |
| $9.08 | -33.6% | -$373.91 |
| $12.10 | -11.5% | -$71.55 |
| $15.13 | +10.6% | +$168.00 |
| $18.15 | +32.7% | +$168.00 |
| $21.18 | +54.8% | +$168.00 |
| $24.20 | +76.9% | +$168.00 |
| $27.22 | +99.0% | +$168.00 |
When traders use covered call on BOIL
Covered calls on BOIL are an income strategy run on existing BOIL etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
BOIL thesis for this covered call
The market-implied 1-standard-deviation range for BOIL extends from approximately $10.28 on the downside to $17.08 on the upside. A BOIL covered call collects premium on an existing long BOIL position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether BOIL will breach that level within the expiration window. Current BOIL IV rank near 12.62% 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 BOIL at 86.77%. As a Financial Services name, BOIL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BOIL-specific events.
BOIL 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. BOIL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BOIL alongside the broader basket even when BOIL-specific fundamentals are unchanged. Short-premium structures like a covered call on BOIL carry tail risk when realized volatility exceeds the implied move; review historical BOIL earnings reactions and macro stress periods before sizing. Always rebuild the position from current BOIL chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on BOIL?
- A covered call on BOIL is the covered call strategy applied to BOIL (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 BOIL etf trading near $13.68, the strikes shown on this page are snapped to the nearest listed BOIL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BOIL 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 BOIL covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 86.77%), the computed maximum profit is $168.00 per contract and the computed maximum loss is -$1,281.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BOIL covered call?
- The breakeven for the BOIL covered call priced on this page is roughly $12.82 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 BOIL market-implied 1-standard-deviation expected move is approximately 24.88%; 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 BOIL?
- Covered calls on BOIL are an income strategy run on existing BOIL 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 BOIL implied volatility affect this covered call?
- BOIL ATM IV is at 86.77% with IV rank near 12.62%, 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.