CPXR Covered Call Strategy
CPXR (USCF Daily Target 2X Copper Index ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by investing principally in cash settled copper futures contracts (“Copper Futures Contracts”), and in cash, cash-like instruments or high-quality securities that serve as collateral to the Copper Futures Contracts (“Collateral Investments”). The fund is non-diversified.
CPXR (USCF Daily Target 2X Copper Index ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $767,343, a beta of 0.47 versus the broader market, a 52-week range of 16.9-34.91, average daily share volume of 39K, a public-listing history dating back to 2025. These structural characteristics shape how CPXR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.47 indicates CPXR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. CPXR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on CPXR?
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 CPXR snapshot
As of May 15, 2026, spot at $30.20, ATM IV 62.40%, IV rank 3.31%, expected move 17.89%. The covered call on CPXR 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 63-day expiry.
Why this covered call structure on CPXR specifically: CPXR IV at 62.40% is on the cheap side of its 1-year range, which means a premium-selling CPXR covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 17.89% (roughly $5.40 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CPXR expiries trade a higher absolute premium for lower per-day decay. Position sizing on CPXR should anchor to the underlying notional of $30.20 per share and to the trader's directional view on CPXR etf.
CPXR covered call setup
The CPXR 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 CPXR near $30.20, the first option leg uses a $32.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CPXR chain at a 63-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 CPXR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $30.20 | long |
| Sell 1 | Call | $32.00 | $2.28 |
CPXR covered call risk and reward
- Net Premium / Debit
- -$2,792.50
- Max Profit (per contract)
- $407.50
- Max Loss (per contract)
- -$2,791.50
- Breakeven(s)
- $27.92
- Risk / Reward Ratio
- 0.146
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.
CPXR covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CPXR. 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% | -$2,791.50 |
| $6.69 | -77.9% | -$2,123.87 |
| $13.36 | -55.8% | -$1,456.24 |
| $20.04 | -33.6% | -$788.62 |
| $26.72 | -11.5% | -$120.99 |
| $33.39 | +10.6% | +$407.50 |
| $40.07 | +32.7% | +$407.50 |
| $46.74 | +54.8% | +$407.50 |
| $53.42 | +76.9% | +$407.50 |
| $60.10 | +99.0% | +$407.50 |
When traders use covered call on CPXR
Covered calls on CPXR are an income strategy run on existing CPXR etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CPXR thesis for this covered call
The market-implied 1-standard-deviation range for CPXR extends from approximately $24.80 on the downside to $35.60 on the upside. A CPXR covered call collects premium on an existing long CPXR position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CPXR will breach that level within the expiration window. Current CPXR IV rank near 3.31% 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 CPXR at 62.40%. As a Financial Services name, CPXR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CPXR-specific events.
CPXR 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. CPXR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CPXR alongside the broader basket even when CPXR-specific fundamentals are unchanged. Short-premium structures like a covered call on CPXR carry tail risk when realized volatility exceeds the implied move; review historical CPXR earnings reactions and macro stress periods before sizing. Always rebuild the position from current CPXR chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CPXR?
- A covered call on CPXR is the covered call strategy applied to CPXR (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 CPXR etf trading near $30.20, the strikes shown on this page are snapped to the nearest listed CPXR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CPXR 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 CPXR covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 62.40%), the computed maximum profit is $407.50 per contract and the computed maximum loss is -$2,791.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CPXR covered call?
- The breakeven for the CPXR covered call priced on this page is roughly $27.92 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 CPXR market-implied 1-standard-deviation expected move is approximately 17.89%; 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 CPXR?
- Covered calls on CPXR are an income strategy run on existing CPXR 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 CPXR implied volatility affect this covered call?
- CPXR ATM IV is at 62.40% with IV rank near 3.31%, 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.