How are FBTC 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 FBTC covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.53%), the computed maximum profit is $375.50 per contract and the computed maximum loss is -$5,373.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FBTC covered call?

The breakeven for the FBTC covered call priced on this page is roughly $53.75 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 FBTC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FBTC implied volatility affect this covered call?

FBTC ATM IV is at 33.53% with IV rank near 1.10%, 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.

FBTC Covered Call Strategy

FBTC (Fidelity Wise Origin Bitcoin Fund), in the Financial Services sector, (Asset Management - Cryptocurrency industry), listed on CBOE.

The index is constructed using bitcoin price feeds from eligible bitcoin spot markets and a volume-weighted median price (“VWMP”) methodology, calculated every 15 seconds based on VWMP spot market data over rolling sixty-minute increments. In seeking to achieve its investment objective, the trust will hold bitcoin and will value its shares daily as of 4:00 p.m. EST using the same methodology used to calculate the index. All of the trust’s bitcoin will be held by the custodian.

FBTC (Fidelity Wise Origin Bitcoin Fund) trades in the Financial Services sector, specifically Asset Management - Cryptocurrency, with a market capitalization of approximately $10.28B, a beta of 2.11 versus the broader market, a 52-week range of 50.48-110.25, average daily share volume of 4.1M, a public-listing history dating back to 2024. These structural characteristics shape how FBTC etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.11 indicates FBTC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a covered call on FBTC?

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.

FBTC snapshot

As of August 14, 2026, spot at $54.72, ATM IV 33.53%, IV rank 1.10%, expected move 9.61%. The covered call on FBTC 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 28-day expiry.

Why this covered call structure on FBTC specifically: FBTC IV at 33.53% is on the cheap side of its 1-year range, which means a premium-selling FBTC covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.61% (roughly $5.26 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FBTC expiries trade a higher absolute premium for lower per-day decay. Position sizing on FBTC should anchor to the underlying notional of $54.72 per share and to the trader's directional view on FBTC etf.

FBTC covered call setup

The FBTC 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 FBTC at $54.72 on that close, the first option leg uses a $57.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FBTC chain at a 28-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 FBTC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$54.72	long
Sell 1	Call	$57.50	$0.98

FBTC covered call risk and reward

Net Premium / Debit: -$5,374.50
Max Profit (per contract): $375.50
Max Loss (per contract): -$5,373.50
Breakeven(s): $53.75
Risk / Reward Ratio: 0.070

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.

FBTC covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on FBTC. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$5,373.50
$12.11	-77.9%	-$4,163.72
$24.21	-55.8%	-$2,953.94
$36.30	-33.7%	-$1,744.16
$48.40	-11.5%	-$534.38
$60.50	+10.6%	+$375.50
$72.60	+32.7%	+$375.50
$84.69	+54.8%	+$375.50
$96.79	+76.9%	+$375.50
$108.89	+99.0%	+$375.50

When traders use covered call on FBTC

Covered calls on FBTC are an income strategy run on existing FBTC etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.

FBTC thesis for this covered call

The market-implied 1-standard-deviation range for FBTC extends from approximately $49.46 on the downside to $59.98 on the upside. A FBTC covered call collects premium on an existing long FBTC position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether FBTC will breach that level within the expiration window. Current FBTC IV rank near 1.10% 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 FBTC at 33.53%. As a Financial Services name, FBTC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FBTC-specific events.

FBTC 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. FBTC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FBTC alongside the broader basket even when FBTC-specific fundamentals are unchanged. Short-premium structures like a covered call on FBTC carry tail risk when realized volatility exceeds the implied move; review historical FBTC earnings reactions and macro stress periods before sizing. Always rebuild the position from current FBTC chain quotes before placing a trade.

Frequently asked questions

What is a covered call on FBTC?: A covered call on FBTC is the covered call strategy applied to FBTC (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 FBTC etf at $54.72 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed FBTC chain strike and the premiums come straight from that session's bid/ask midpoint.
How are FBTC 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 FBTC covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.53%), the computed maximum profit is $375.50 per contract and the computed maximum loss is -$5,373.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FBTC covered call?: The breakeven for the FBTC covered call priced on this page is roughly $53.75 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 FBTC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.61%; 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 FBTC?: Covered calls on FBTC are an income strategy run on existing FBTC 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 FBTC implied volatility affect this covered call?: FBTC ATM IV is at 33.53% with IV rank near 1.10%, 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.