DIG Covered Call Strategy
DIG (ProShares - Ultra Energy), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The ProShares Ultra Energy fund is engineered to offer daily returns that are double the daily performance of the S&P Energy Select Sector Index. This objective is pursued prior to the deduction of any fees or expenses.
DIG (ProShares - Ultra Energy) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $81.6M, a beta of -0.03 versus the broader market, a 52-week range of 34.35-83.24, average daily share volume of 48K, a public-listing history dating back to 2007. These structural characteristics shape how DIG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.03 indicates DIG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. DIG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on DIG?
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.
DIG snapshot
As of November 13, 2026, spot at $70.52, ATM IV 50.30%, IV rank 41.08%, expected move 14.42%. The covered call on DIG below is built from the November 13, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this covered call structure on DIG specifically: DIG IV at 50.30% is mid-range versus its 1-year history, so the credit collected on a DIG covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 14.42% (roughly $10.17 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DIG expiries trade a higher absolute premium for lower per-day decay. Position sizing on DIG should anchor to the underlying notional of $70.52 per share and to the trader's directional view on DIG etf.
DIG covered call setup
The DIG covered call below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With DIG at $70.52 on that close, the first option leg uses a $75.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DIG chain at a 35-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 DIG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $70.52 | long |
| Sell 1 | Call | $75.00 | $2.30 |
DIG covered call risk and reward
- Net Premium / Debit
- -$6,822.00
- Max Profit (per contract)
- $678.00
- Max Loss (per contract)
- -$6,821.00
- Breakeven(s)
- $68.22
- Risk / Reward Ratio
- 0.099
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.
DIG covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on DIG. 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% | -$6,821.00 |
| $15.60 | -77.9% | -$5,261.87 |
| $31.19 | -55.8% | -$3,702.75 |
| $46.78 | -33.7% | -$2,143.62 |
| $62.38 | -11.5% | -$584.50 |
| $77.97 | +10.6% | +$678.00 |
| $93.56 | +32.7% | +$678.00 |
| $109.15 | +54.8% | +$678.00 |
| $124.74 | +76.9% | +$678.00 |
| $140.33 | +99.0% | +$678.00 |
When traders use covered call on DIG
Covered calls on DIG are an income strategy run on existing DIG etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
DIG thesis for this covered call
The market-implied 1-standard-deviation range for DIG extends from approximately $60.35 on the downside to $80.69 on the upside. A DIG covered call collects premium on an existing long DIG position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether DIG will breach that level within the expiration window. Current DIG IV rank near 41.08% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on DIG should anchor more to the directional view and the expected-move geometry. As a Financial Services name, DIG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DIG-specific events.
DIG 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. DIG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DIG alongside the broader basket even when DIG-specific fundamentals are unchanged. Short-premium structures like a covered call on DIG carry tail risk when realized volatility exceeds the implied move; review historical DIG earnings reactions and macro stress periods before sizing. Always rebuild the position from current DIG chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on DIG?
- A covered call on DIG is the covered call strategy applied to DIG (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 DIG etf at $70.52 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed DIG chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are DIG 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 DIG covered call priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 50.30%), the computed maximum profit is $678.00 per contract and the computed maximum loss is -$6,821.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DIG covered call?
- The breakeven for the DIG covered call priced on this page is roughly $68.22 at expiration, derived from the November 13, 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 DIG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.42%; 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 DIG?
- Covered calls on DIG are an income strategy run on existing DIG 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 DIG implied volatility affect this covered call?
- DIG ATM IV is at 50.30% with IV rank near 41.08%, 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.