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 end-of-day chain at a 30-day expiry (ATM IV 38.90%), the computed maximum profit is $523.50 per contract and the computed maximum loss is -$6,725.50 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 $67.27 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 FBTC market-implied 1-standard-deviation expected move is approximately 11.15%; 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 38.90% with IV rank near 13.42%, 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.

Get easier exposure to the price of bitcoin—without buying bitcoin directly—in most brokerage, trust, and IRA accounts.1. This product is for investors with a high risk tolerance and invests solely in bitcoin, which is highly volatile and could become illiquid. Investors could lose their entire investment. FBTC is not a traditional ETF registered under the Investment Company Act of 1940.

FBTC (Fidelity Wise Origin Bitcoin Fund) trades in the Financial Services sector, specifically Asset Management - Cryptocurrency, with a market capitalization of approximately $18.52B, a beta of 2.17 versus the broader market, a 52-week range of 54.205-110.25, average daily share volume of 4.7M, 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 2.17 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.

Current FBTC snapshot

As of May 15, 2026, spot at $68.84, ATM IV 38.90%, IV rank 13.42%, expected move 11.15%. The covered call on FBTC 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 28-day expiry.

Why this covered call structure on FBTC specifically: FBTC IV at 38.90% 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 11.15% (roughly $7.68 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 $68.84 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 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With FBTC near $68.84, the first option leg uses a $72.50 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	$68.84	long
Sell 1	Call	$72.50	$1.58

FBTC covered call risk and reward

Net Premium / Debit: -$6,726.50
Max Profit (per contract): $523.50
Max Loss (per contract): -$6,725.50
Breakeven(s): $67.27
Risk / Reward Ratio: 0.078

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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$6,725.50
$15.23	-77.9%	-$5,203.52
$30.45	-55.8%	-$3,681.54
$45.67	-33.7%	-$2,159.56
$60.89	-11.5%	-$637.58
$76.11	+10.6%	+$523.50
$91.33	+32.7%	+$523.50
$106.55	+54.8%	+$523.50
$121.77	+76.9%	+$523.50
$136.99	+99.0%	+$523.50

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 $61.16 on the downside to $76.52 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 13.42% 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 38.90%. 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 trading near $68.84, the strikes shown on this page are snapped to the nearest listed FBTC chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 38.90%), the computed maximum profit is $523.50 per contract and the computed maximum loss is -$6,725.50 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 $67.27 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 FBTC market-implied 1-standard-deviation expected move is approximately 11.15%; 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 38.90% with IV rank near 13.42%, 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.