EET Covered Call Strategy
EET (ProShares - Ultra MSCI Emerging Markets), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
This fund aims to provide daily returns equivalent to twice (2x) the daily performance of the MSCI Emerging Markets Index, excluding any fees and expenses.
EET (ProShares - Ultra MSCI Emerging Markets) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $37.0M, a beta of 1.67 versus the broader market, a 52-week range of 66.41-129.02, average daily share volume of 12K, a public-listing history dating back to 2009. These structural characteristics shape how EET etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.67 indicates EET has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. EET pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on EET?
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.
EET snapshot
As of August 14, 2026, spot at $109.19, ATM IV 51.10%, IV rank 37.40%, expected move 14.65%. The covered call on EET below is built from the August 14, 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 EET specifically: EET IV at 51.10% is mid-range versus its 1-year history, so the credit collected on a EET covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 14.65% (roughly $16.00 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 EET expiries trade a higher absolute premium for lower per-day decay. Position sizing on EET should anchor to the underlying notional of $109.19 per share and to the trader's directional view on EET etf.
EET covered call setup
The EET covered call below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With EET at $109.19 on that close, the first option leg uses a $115.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EET 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 EET shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $109.19 | long |
| Sell 1 | Call | $115.00 | $4.90 |
EET covered call risk and reward
- Net Premium / Debit
- -$10,429.00
- Max Profit (per contract)
- $1,071.00
- Max Loss (per contract)
- -$10,428.00
- Breakeven(s)
- $104.29
- Risk / Reward Ratio
- 0.103
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.
EET covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on EET. 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% | -$10,428.00 |
| $24.15 | -77.9% | -$8,013.86 |
| $48.29 | -55.8% | -$5,599.72 |
| $72.43 | -33.7% | -$3,185.58 |
| $96.58 | -11.6% | -$771.44 |
| $120.72 | +10.6% | +$1,071.00 |
| $144.86 | +32.7% | +$1,071.00 |
| $169.00 | +54.8% | +$1,071.00 |
| $193.14 | +76.9% | +$1,071.00 |
| $217.28 | +99.0% | +$1,071.00 |
When traders use covered call on EET
Covered calls on EET are an income strategy run on existing EET etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
EET thesis for this covered call
The market-implied 1-standard-deviation range for EET extends from approximately $93.19 on the downside to $125.19 on the upside. A EET covered call collects premium on an existing long EET position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether EET will breach that level within the expiration window. Current EET IV rank near 37.40% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on EET should anchor more to the directional view and the expected-move geometry. As a Financial Services name, EET options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EET-specific events.
EET 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. EET positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EET alongside the broader basket even when EET-specific fundamentals are unchanged. Short-premium structures like a covered call on EET carry tail risk when realized volatility exceeds the implied move; review historical EET earnings reactions and macro stress periods before sizing. Always rebuild the position from current EET chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on EET?
- A covered call on EET is the covered call strategy applied to EET (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 EET etf at $109.19 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed EET chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are EET 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 EET covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 51.10%), the computed maximum profit is $1,071.00 per contract and the computed maximum loss is -$10,428.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EET covered call?
- The breakeven for the EET covered call priced on this page is roughly $104.29 at expiration, derived from the August 14, 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 EET market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.65%; 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 EET?
- Covered calls on EET are an income strategy run on existing EET 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 EET implied volatility affect this covered call?
- EET ATM IV is at 51.10% with IV rank near 37.40%, 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.