CURE Covered Call Strategy
CURE (Direxion Daily Healthcare Bull 3X ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Direxion Daily Healthcare Bull 3X Shares seeks daily investment results, before fees and expenses, of 300% of the performance of the Health Care Select Sector Index. There is no guarantee the fund will achieve its stated investment objectives.
CURE (Direxion Daily Healthcare Bull 3X ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $140.9M, a beta of 1.45 versus the broader market, a 52-week range of 66-123.8, average daily share volume of 51K, a public-listing history dating back to 2011. These structural characteristics shape how CURE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.45 indicates CURE has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. CURE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on CURE?
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 CURE snapshot
As of May 15, 2026, spot at $87.22, ATM IV 48.90%, IV rank 48.54%, expected move 14.02%. The covered call on CURE 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 CURE specifically: CURE IV at 48.90% is mid-range versus its 1-year history, so the credit collected on a CURE covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 14.02% (roughly $12.23 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 CURE expiries trade a higher absolute premium for lower per-day decay. Position sizing on CURE should anchor to the underlying notional of $87.22 per share and to the trader's directional view on CURE etf.
CURE covered call setup
The CURE 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 CURE near $87.22, the first option leg uses a $92.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CURE 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 CURE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $87.22 | long |
| Sell 1 | Call | $92.00 | $3.15 |
CURE covered call risk and reward
- Net Premium / Debit
- -$8,407.00
- Max Profit (per contract)
- $793.00
- Max Loss (per contract)
- -$8,406.00
- Breakeven(s)
- $84.07
- Risk / Reward Ratio
- 0.094
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.
CURE covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CURE. 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% | -$8,406.00 |
| $19.29 | -77.9% | -$6,477.63 |
| $38.58 | -55.8% | -$4,549.26 |
| $57.86 | -33.7% | -$2,620.88 |
| $77.14 | -11.6% | -$692.51 |
| $96.43 | +10.6% | +$793.00 |
| $115.71 | +32.7% | +$793.00 |
| $135.00 | +54.8% | +$793.00 |
| $154.28 | +76.9% | +$793.00 |
| $173.56 | +99.0% | +$793.00 |
When traders use covered call on CURE
Covered calls on CURE are an income strategy run on existing CURE etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CURE thesis for this covered call
The market-implied 1-standard-deviation range for CURE extends from approximately $74.99 on the downside to $99.45 on the upside. A CURE covered call collects premium on an existing long CURE position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CURE will breach that level within the expiration window. Current CURE IV rank near 48.54% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on CURE should anchor more to the directional view and the expected-move geometry. As a Financial Services name, CURE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CURE-specific events.
CURE 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. CURE positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CURE alongside the broader basket even when CURE-specific fundamentals are unchanged. Short-premium structures like a covered call on CURE carry tail risk when realized volatility exceeds the implied move; review historical CURE earnings reactions and macro stress periods before sizing. Always rebuild the position from current CURE chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CURE?
- A covered call on CURE is the covered call strategy applied to CURE (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 CURE etf trading near $87.22, the strikes shown on this page are snapped to the nearest listed CURE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CURE 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 CURE covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 48.90%), the computed maximum profit is $793.00 per contract and the computed maximum loss is -$8,406.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CURE covered call?
- The breakeven for the CURE covered call priced on this page is roughly $84.07 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 CURE market-implied 1-standard-deviation expected move is approximately 14.02%; 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 CURE?
- Covered calls on CURE are an income strategy run on existing CURE 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 CURE implied volatility affect this covered call?
- CURE ATM IV is at 48.90% with IV rank near 48.54%, 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.