EZJ Covered Call Strategy
EZJ (ProShares - Ultra MSCI Japan), in the Financial Services sector, (Asset Management industry), listed on AMEX.
ProShares Ultra MSCI Japan seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the MSCI Japan Index.
EZJ (ProShares - Ultra MSCI Japan) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $10.3M, a beta of 1.25 versus the broader market, a 52-week range of 39.5-70.5, average daily share volume of 12K, a public-listing history dating back to 2009. These structural characteristics shape how EZJ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.25 places EZJ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. EZJ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on EZJ?
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 EZJ snapshot
As of May 15, 2026, spot at $63.20, ATM IV 45.00%, IV rank 10.50%, expected move 12.90%. The covered call on EZJ 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 EZJ specifically: EZJ IV at 45.00% is on the cheap side of its 1-year range, which means a premium-selling EZJ covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 12.90% (roughly $8.15 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 EZJ expiries trade a higher absolute premium for lower per-day decay. Position sizing on EZJ should anchor to the underlying notional of $63.20 per share and to the trader's directional view on EZJ etf.
EZJ covered call setup
The EZJ 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 EZJ near $63.20, the first option leg uses a $66.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EZJ 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 EZJ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $63.20 | long |
| Sell 1 | Call | $66.00 | $3.00 |
EZJ covered call risk and reward
- Net Premium / Debit
- -$6,020.00
- Max Profit (per contract)
- $580.00
- Max Loss (per contract)
- -$6,019.00
- Breakeven(s)
- $60.20
- Risk / Reward Ratio
- 0.096
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.
EZJ covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on EZJ. 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% | -$6,019.00 |
| $13.98 | -77.9% | -$4,621.72 |
| $27.96 | -55.8% | -$3,224.45 |
| $41.93 | -33.7% | -$1,827.17 |
| $55.90 | -11.5% | -$429.89 |
| $69.87 | +10.6% | +$580.00 |
| $83.85 | +32.7% | +$580.00 |
| $97.82 | +54.8% | +$580.00 |
| $111.79 | +76.9% | +$580.00 |
| $125.76 | +99.0% | +$580.00 |
When traders use covered call on EZJ
Covered calls on EZJ are an income strategy run on existing EZJ etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
EZJ thesis for this covered call
The market-implied 1-standard-deviation range for EZJ extends from approximately $55.05 on the downside to $71.35 on the upside. A EZJ covered call collects premium on an existing long EZJ position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether EZJ will breach that level within the expiration window. Current EZJ IV rank near 10.50% 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 EZJ at 45.00%. As a Financial Services name, EZJ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EZJ-specific events.
EZJ 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. EZJ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EZJ alongside the broader basket even when EZJ-specific fundamentals are unchanged. Short-premium structures like a covered call on EZJ carry tail risk when realized volatility exceeds the implied move; review historical EZJ earnings reactions and macro stress periods before sizing. Always rebuild the position from current EZJ chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on EZJ?
- A covered call on EZJ is the covered call strategy applied to EZJ (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 EZJ etf trading near $63.20, the strikes shown on this page are snapped to the nearest listed EZJ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EZJ 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 EZJ covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 45.00%), the computed maximum profit is $580.00 per contract and the computed maximum loss is -$6,019.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EZJ covered call?
- The breakeven for the EZJ covered call priced on this page is roughly $60.20 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 EZJ market-implied 1-standard-deviation expected move is approximately 12.90%; 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 EZJ?
- Covered calls on EZJ are an income strategy run on existing EZJ 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 EZJ implied volatility affect this covered call?
- EZJ ATM IV is at 45.00% with IV rank near 10.50%, 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.