How are BZQ 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 BZQ covered call priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 61.10%), the computed maximum profit is $247.50 per contract and the computed maximum loss is -$2,051.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BZQ covered call?

The breakeven for the BZQ covered call priced on this page is roughly $20.53 at expiration, derived from the November 13, 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 BZQ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BZQ implied volatility affect this covered call?

BZQ ATM IV is at 61.10% with IV rank near 30.81%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

BZQ Covered Call Strategy

BZQ (ProShares - UltraShort MSCI Brazil Capped), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.

The ProShares UltraShort MSCI Brazil Capped fund is designed to deliver daily investment returns that are twice the opposite of the MSCI Brazil 25/50 Index's single-day performance. This target is calculated before any management fees or operating expenses are subtracted.

BZQ (ProShares - UltraShort MSCI Brazil Capped) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $2.5M, a beta of -0.58 versus the broader market, a 52-week range of 12.95-34.28, average daily share volume of 11K, a public-listing history dating back to 2009, approximately 168 full-time employees. These structural characteristics shape how BZQ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.58 indicates BZQ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. BZQ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on BZQ?

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.

BZQ snapshot

As of November 13, 2026, spot at $21.55, ATM IV 61.10%, IV rank 30.81%, expected move 17.52%. The covered call on BZQ below is built from the November 13, 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 BZQ specifically: BZQ IV at 61.10% is mid-range versus its 1-year history, so the credit collected on a BZQ covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 17.52% (roughly $3.77 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 BZQ expiries trade a higher absolute premium for lower per-day decay. Position sizing on BZQ should anchor to the underlying notional of $21.55 per share and to the trader's directional view on BZQ etf.

BZQ covered call setup

The BZQ covered call below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With BZQ at $21.55 on that close, the first option leg uses a $23.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BZQ 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 BZQ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$21.55	long
Sell 1	Call	$23.00	$1.03

BZQ covered call risk and reward

Net Premium / Debit: -$2,052.50
Max Profit (per contract): $247.50
Max Loss (per contract): -$2,051.50
Breakeven(s): $20.53
Risk / Reward Ratio: 0.121

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.

BZQ covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on BZQ. 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	-100.0%	-$2,051.50
$4.77	-77.8%	-$1,575.13
$9.54	-55.7%	-$1,098.76
$14.30	-33.6%	-$622.38
$19.06	-11.5%	-$146.01
$23.83	+10.6%	+$247.50
$28.59	+32.7%	+$247.50
$33.36	+54.8%	+$247.50
$38.12	+76.9%	+$247.50
$42.88	+99.0%	+$247.50

When traders use covered call on BZQ

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

BZQ thesis for this covered call

The market-implied 1-standard-deviation range for BZQ extends from approximately $17.78 on the downside to $25.32 on the upside. A BZQ covered call collects premium on an existing long BZQ position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether BZQ will breach that level within the expiration window. Current BZQ IV rank near 30.81% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on BZQ should anchor more to the directional view and the expected-move geometry. As a Financial Services name, BZQ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BZQ-specific events.

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

Frequently asked questions

What is a covered call on BZQ?: A covered call on BZQ is the covered call strategy applied to BZQ (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 BZQ etf at $21.55 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed BZQ chain strike and the premiums come straight from that session's bid/ask midpoint.
How are BZQ 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 BZQ covered call priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 61.10%), the computed maximum profit is $247.50 per contract and the computed maximum loss is -$2,051.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BZQ covered call?: The breakeven for the BZQ covered call priced on this page is roughly $20.53 at expiration, derived from the November 13, 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 BZQ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.52%; 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 BZQ?: Covered calls on BZQ are an income strategy run on existing BZQ 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 BZQ implied volatility affect this covered call?: BZQ ATM IV is at 61.10% with IV rank near 30.81%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.