How are GBUG 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 GBUG covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 48.00%), the computed maximum profit is $426.00 per contract and the computed maximum loss is -$4,573.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GBUG covered call?

The breakeven for the GBUG covered call priced on this page is roughly $45.74 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 GBUG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GBUG implied volatility affect this covered call?

GBUG ATM IV is at 48.00% with IV rank near 4.96%, 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.

GBUG Covered Call Strategy

GBUG (Sprott Active Gold & Silver Miners ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

The fund seeks to achieve its investment objective by investing 80% of its net assets in shares of gold and silver, focused companies that are engaged in exploring, developing and mining; or royalty and streaming companies engaged in the financing of gold and silver assets. The investment strategy of the fund is value oriented and contrarian. The fund is non-diversified.

GBUG (Sprott Active Gold & Silver Miners ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $70.1M, a beta of 0.14 versus the broader market, a 52-week range of 27.06-59.02, average daily share volume of 42K, a public-listing history dating back to 2025. These structural characteristics shape how GBUG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.14 indicates GBUG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. GBUG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on GBUG?

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.

GBUG snapshot

As of August 14, 2026, spot at $47.69, ATM IV 48.00%, IV rank 4.96%, expected move 13.76%. The covered call on GBUG 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 GBUG specifically: GBUG IV at 48.00% is on the cheap side of its 1-year range, which means a premium-selling GBUG covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 13.76% (roughly $6.56 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 GBUG expiries trade a higher absolute premium for lower per-day decay. Position sizing on GBUG should anchor to the underlying notional of $47.69 per share and to the trader's directional view on GBUG etf.

GBUG covered call setup

The GBUG 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 GBUG at $47.69 on that close, the first option leg uses a $50.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GBUG 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 GBUG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$47.69	long
Sell 1	Call	$50.00	$1.95

GBUG covered call risk and reward

Net Premium / Debit: -$4,574.00
Max Profit (per contract): $426.00
Max Loss (per contract): -$4,573.00
Breakeven(s): $45.74
Risk / Reward Ratio: 0.093

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.

GBUG covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on GBUG. 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%	-$4,573.00
$10.55	-77.9%	-$3,518.66
$21.10	-55.8%	-$2,464.32
$31.64	-33.7%	-$1,409.97
$42.18	-11.5%	-$355.63
$52.73	+10.6%	+$426.00
$63.27	+32.7%	+$426.00
$73.81	+54.8%	+$426.00
$84.36	+76.9%	+$426.00
$94.90	+99.0%	+$426.00

When traders use covered call on GBUG

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

GBUG thesis for this covered call

The market-implied 1-standard-deviation range for GBUG extends from approximately $41.13 on the downside to $54.25 on the upside. A GBUG covered call collects premium on an existing long GBUG position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether GBUG will breach that level within the expiration window. Current GBUG IV rank near 4.96% 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 GBUG at 48.00%. As a Financial Services name, GBUG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GBUG-specific events.

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

Frequently asked questions

What is a covered call on GBUG?: A covered call on GBUG is the covered call strategy applied to GBUG (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 GBUG etf at $47.69 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed GBUG chain strike and the premiums come straight from that session's bid/ask midpoint.
How are GBUG 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 GBUG covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 48.00%), the computed maximum profit is $426.00 per contract and the computed maximum loss is -$4,573.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GBUG covered call?: The breakeven for the GBUG covered call priced on this page is roughly $45.74 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 GBUG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.76%; 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 GBUG?: Covered calls on GBUG are an income strategy run on existing GBUG 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 GBUG implied volatility affect this covered call?: GBUG ATM IV is at 48.00% with IV rank near 4.96%, 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.