COM Covered Call Strategy
COM (Direxion Auspice Broad Commodity Strategy ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Direxion Auspice Broad Commodity Strategy ETF seeks investment results, before fees and expenses, that track the Auspice Broad Commodity Index. There is no guarantee the fund will achieve its stated investment objective.
COM (Direxion Auspice Broad Commodity Strategy ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $191.7M, a beta of 0.42 versus the broader market, a 52-week range of 27.462-35.62, average daily share volume of 185K, a public-listing history dating back to 2017. These structural characteristics shape how COM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.42 indicates COM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. COM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on COM?
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 COM snapshot
As of May 15, 2026, spot at $34.39, ATM IV 7.90%, IV rank 2.36%, expected move 2.26%. The covered call on COM 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 COM specifically: COM IV at 7.90% is on the cheap side of its 1-year range, which means a premium-selling COM covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 2.26% (roughly $0.78 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 COM expiries trade a higher absolute premium for lower per-day decay. Position sizing on COM should anchor to the underlying notional of $34.39 per share and to the trader's directional view on COM etf.
COM covered call setup
The COM 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 COM near $34.39, the first option leg uses a $36.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed COM 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 COM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $34.39 | long |
| Sell 1 | Call | $36.00 | $0.07 |
COM covered call risk and reward
- Net Premium / Debit
- -$3,432.00
- Max Profit (per contract)
- $168.00
- Max Loss (per contract)
- -$3,431.00
- Breakeven(s)
- $34.32
- Risk / Reward Ratio
- 0.049
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.
COM covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on COM. 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% | -$3,431.00 |
| $7.61 | -77.9% | -$2,670.73 |
| $15.22 | -55.8% | -$1,910.46 |
| $22.82 | -33.6% | -$1,150.19 |
| $30.42 | -11.5% | -$389.91 |
| $38.02 | +10.6% | +$168.00 |
| $45.63 | +32.7% | +$168.00 |
| $53.23 | +54.8% | +$168.00 |
| $60.83 | +76.9% | +$168.00 |
| $68.43 | +99.0% | +$168.00 |
When traders use covered call on COM
Covered calls on COM are an income strategy run on existing COM etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
COM thesis for this covered call
The market-implied 1-standard-deviation range for COM extends from approximately $33.61 on the downside to $35.17 on the upside. A COM covered call collects premium on an existing long COM position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether COM will breach that level within the expiration window. Current COM IV rank near 2.36% 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 COM at 7.90%. As a Financial Services name, COM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to COM-specific events.
COM 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. COM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move COM alongside the broader basket even when COM-specific fundamentals are unchanged. Short-premium structures like a covered call on COM carry tail risk when realized volatility exceeds the implied move; review historical COM earnings reactions and macro stress periods before sizing. Always rebuild the position from current COM chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on COM?
- A covered call on COM is the covered call strategy applied to COM (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 COM etf trading near $34.39, the strikes shown on this page are snapped to the nearest listed COM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are COM 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 COM covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 7.90%), the computed maximum profit is $168.00 per contract and the computed maximum loss is -$3,431.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a COM covered call?
- The breakeven for the COM covered call priced on this page is roughly $34.32 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 COM market-implied 1-standard-deviation expected move is approximately 2.26%; 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 COM?
- Covered calls on COM are an income strategy run on existing COM 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 COM implied volatility affect this covered call?
- COM ATM IV is at 7.90% with IV rank near 2.36%, 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.