CNBS Covered Call Strategy
CNBS (Amplify Seymour Cannabis ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
CNBS is an actively managed ETF that provides diversified U.S. exposure across the cannabis ecosystem including cannabis: plants, support, and ancillary businesses. CNBS seeks to provide capital appreciation.
CNBS (Amplify Seymour Cannabis ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $69.7M, a beta of 0.94 versus the broader market, a 52-week range of 13.96-43.94, average daily share volume of 16K, a public-listing history dating back to 2019. These structural characteristics shape how CNBS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.94 places CNBS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CNBS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on CNBS?
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 CNBS snapshot
As of May 15, 2026, spot at $25.88, ATM IV 90.90%, IV rank 37.54%, expected move 26.06%. The covered call on CNBS 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 34-day expiry.
Why this covered call structure on CNBS specifically: CNBS IV at 90.90% is mid-range versus its 1-year history, so the credit collected on a CNBS covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 26.06% (roughly $6.74 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CNBS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CNBS should anchor to the underlying notional of $25.88 per share and to the trader's directional view on CNBS etf.
CNBS covered call setup
The CNBS 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 CNBS near $25.88, the first option leg uses a $27.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CNBS chain at a 34-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 CNBS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $25.88 | long |
| Sell 1 | Call | $27.00 | $2.45 |
CNBS covered call risk and reward
- Net Premium / Debit
- -$2,343.00
- Max Profit (per contract)
- $357.00
- Max Loss (per contract)
- -$2,342.00
- Breakeven(s)
- $23.43
- Risk / Reward Ratio
- 0.152
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.
CNBS covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CNBS. 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 | -100.0% | -$2,342.00 |
| $5.73 | -77.9% | -$1,769.89 |
| $11.45 | -55.7% | -$1,197.78 |
| $17.17 | -33.6% | -$625.67 |
| $22.89 | -11.5% | -$53.56 |
| $28.62 | +10.6% | +$357.00 |
| $34.34 | +32.7% | +$357.00 |
| $40.06 | +54.8% | +$357.00 |
| $45.78 | +76.9% | +$357.00 |
| $51.50 | +99.0% | +$357.00 |
When traders use covered call on CNBS
Covered calls on CNBS are an income strategy run on existing CNBS etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CNBS thesis for this covered call
The market-implied 1-standard-deviation range for CNBS extends from approximately $19.14 on the downside to $32.62 on the upside. A CNBS covered call collects premium on an existing long CNBS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CNBS will breach that level within the expiration window. Current CNBS IV rank near 37.54% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on CNBS should anchor more to the directional view and the expected-move geometry. As a Financial Services name, CNBS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CNBS-specific events.
CNBS 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. CNBS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CNBS alongside the broader basket even when CNBS-specific fundamentals are unchanged. Short-premium structures like a covered call on CNBS carry tail risk when realized volatility exceeds the implied move; review historical CNBS earnings reactions and macro stress periods before sizing. Always rebuild the position from current CNBS chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CNBS?
- A covered call on CNBS is the covered call strategy applied to CNBS (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 CNBS etf trading near $25.88, the strikes shown on this page are snapped to the nearest listed CNBS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CNBS 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 CNBS covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 90.90%), the computed maximum profit is $357.00 per contract and the computed maximum loss is -$2,342.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CNBS covered call?
- The breakeven for the CNBS covered call priced on this page is roughly $23.43 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 CNBS market-implied 1-standard-deviation expected move is approximately 26.06%; 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 CNBS?
- Covered calls on CNBS are an income strategy run on existing CNBS 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 CNBS implied volatility affect this covered call?
- CNBS ATM IV is at 90.90% with IV rank near 37.54%, 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.