COZX Covered Call Strategy
COZX (Investment Managers Series Trust II - Tradr 2X Long CORZ Daily ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
COZX is a short-term tactical tool that aims to deliver twice (200%) the daily performance of Core Scientific, Inc. stock (CORZ), before fees and expenses. The fund primarily enters into total return swap agreements with major global financial institutions that mirror CORZs daily returns. In case swaps are unavailable or less efficient, the fund may use FLEX call options or directly hold CORZ stock. Purchasers holding shares for longer than a day will need to monitor and rebalance their position frequently to attempt to achieve the 2x multiple. Purchasers should conduct their own individual stock research prior to initiating a position and trade with conviction. Due to the complexities of the product, shares tend to perform as anticipated only when the underlying shares are trending, and holders are on the positive corresponding side of that trade.
COZX (Investment Managers Series Trust II - Tradr 2X Long CORZ Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.6M, a beta of 7.93 versus the broader market, a 52-week range of 6.9-32.57, average daily share volume of 60K, a public-listing history dating back to 2025. These structural characteristics shape how COZX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 7.93 indicates COZX 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 COZX?
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.
COZX snapshot
As of September 29, 2026, spot at $7.24, ATM IV 150.50%, IV rank 7.30%, expected move 43.15%. The covered call on COZX 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 COZX specifically: COZX IV at 150.50% is on the cheap side of its 1-year range, which means a premium-selling COZX covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 43.15% (roughly $3.12 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 COZX expiries trade a higher absolute premium for lower per-day decay. Position sizing on COZX should anchor to the underlying notional of $7.24 per share and to the trader's directional view on COZX etf.
COZX covered call setup
The COZX 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 COZX at $7.24 on that close, the first option leg uses a $7.60 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed COZX 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 COZX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $7.24 | long |
| Sell 1 | Call | $7.60 | N/A |
COZX covered call risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
COZX covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on COZX. 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.
When traders use covered call on COZX
Covered calls on COZX are an income strategy run on existing COZX etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
COZX thesis for this covered call
The market-implied 1-standard-deviation range for COZX extends from approximately $4.12 on the downside to $10.36 on the upside. A COZX covered call collects premium on an existing long COZX position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether COZX will breach that level within the expiration window. Current COZX IV rank near 7.30% 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 COZX at 150.50%. As a Financial Services name, COZX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to COZX-specific events.
COZX 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. COZX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move COZX alongside the broader basket even when COZX-specific fundamentals are unchanged. Short-premium structures like a covered call on COZX carry tail risk when realized volatility exceeds the implied move; review historical COZX earnings reactions and macro stress periods before sizing. Always rebuild the position from current COZX chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on COZX?
- A covered call on COZX is the covered call strategy applied to COZX (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 COZX etf at $7.24 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed COZX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are COZX 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 COZX covered call priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 150.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a COZX covered call?
- The breakeven for the COZX covered call priced on this page is no defined breakeven on the modeled curve 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 COZX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 43.15%; 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 COZX?
- Covered calls on COZX are an income strategy run on existing COZX 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 COZX implied volatility affect this covered call?
- COZX ATM IV is at 150.50% with IV rank near 7.30%, 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.