How are CATH 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 CATH covered call priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 112.90%), the computed maximum profit is $518.00 per contract and the computed maximum loss is -$8,981.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CATH covered call?

The breakeven for the CATH covered call priced on this page is roughly $89.82 at expiration, derived from the September 29, 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 CATH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 32.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CATH implied volatility affect this covered call?

CATH ATM IV is at 112.90% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

CATH Covered Call Strategy

CATH (Global X - S&P 500 Catholic Values ETF), in the Financial Services sector, (Asset Management - Global industry), listed on NASDAQ.

The Global X S&P 500 Catholic Values ETF (CATH) is designed to largely replicate the financial returns, encompassing both capital growth and income, of the S&P 500 Catholic Values Index. This mirroring of performance is considered prior to the impact of fund fees and expenses.

CATH (Global X - S&P 500 Catholic Values ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $1.30B, a beta of 1.03 versus the broader market, a 52-week range of 75.61-93.05, average daily share volume of 44K, a public-listing history dating back to 2016. These structural characteristics shape how CATH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.03 places CATH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CATH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on CATH?

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.

CATH snapshot

As of September 29, 2026, spot at $90.72, ATM IV 112.90%, IV rank 100.00%, expected move 32.37%. The covered call on CATH below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 80-day expiry.

Why this covered call structure on CATH specifically: CATH IV at 112.90% is rich versus its 1-year range, which favors premium-selling structures like a CATH covered call, with a market-implied 1-standard-deviation move of approximately 32.37% (roughly $29.36 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CATH expiries trade a higher absolute premium for lower per-day decay. Position sizing on CATH should anchor to the underlying notional of $90.72 per share and to the trader's directional view on CATH etf.

CATH covered call setup

The CATH covered call below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CATH at $90.72 on that close, the first option leg uses a $95.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CATH chain at a 80-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 CATH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$90.72	long
Sell 1	Call	$95.00	$0.90

CATH covered call risk and reward

Net Premium / Debit: -$8,982.00
Max Profit (per contract): $518.00
Max Loss (per contract): -$8,981.00
Breakeven(s): $89.82
Risk / Reward Ratio: 0.058

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.

CATH covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on CATH. 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%	-$8,981.00
$20.07	-77.9%	-$6,975.24
$40.13	-55.8%	-$4,969.48
$60.18	-33.7%	-$2,963.72
$80.24	-11.6%	-$957.96
$100.30	+10.6%	+$518.00
$120.36	+32.7%	+$518.00
$140.41	+54.8%	+$518.00
$160.47	+76.9%	+$518.00
$180.53	+99.0%	+$518.00

When traders use covered call on CATH

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

CATH thesis for this covered call

The market-implied 1-standard-deviation range for CATH extends from approximately $61.36 on the downside to $120.08 on the upside. A CATH covered call collects premium on an existing long CATH position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CATH will breach that level within the expiration window. Current CATH IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on CATH at 112.90%. As a Financial Services name, CATH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CATH-specific events.

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

Frequently asked questions

What is a covered call on CATH?: A covered call on CATH is the covered call strategy applied to CATH (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 CATH etf at $90.72 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed CATH chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CATH 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 CATH covered call priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 112.90%), the computed maximum profit is $518.00 per contract and the computed maximum loss is -$8,981.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CATH covered call?: The breakeven for the CATH covered call priced on this page is roughly $89.82 at expiration, derived from the September 29, 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 CATH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 32.37%; 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 CATH?: Covered calls on CATH are an income strategy run on existing CATH 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 CATH implied volatility affect this covered call?: CATH ATM IV is at 112.90% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.