How are GII 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 GII covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 18.10%), the computed maximum profit is $431.00 per contract and the computed maximum loss is -$7,568.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GII covered call?

The breakeven for the GII covered call priced on this page is roughly $75.69 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 GII market-implied 1-standard-deviation expected move is approximately 5.19%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GII implied volatility affect this covered call?

GII ATM IV is at 18.10% with IV rank near 3.08%, 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.

GII Covered Call Strategy

GII (State Street SPDR S&P Global Infrastructure ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

This State Street SPDR exchange-traded fund aims to deliver investment returns that closely mirror the overall performance of the S&P Global Infrastructure Index, prior to factoring in any management fees or expenses. The fund primarily invests in the 75 largest infrastructure-related companies, which are selected based on their float-adjusted market capitalization and trading liquidity. The foundational index itself offers broad exposure across vital infrastructure sectors, specifically transportation, public utilities, and energy.

GII (State Street SPDR S&P Global Infrastructure ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $980.0M, a beta of 0.60 versus the broader market, a 52-week range of 65.99-78.95, average daily share volume of 78K, a public-listing history dating back to 2007. These structural characteristics shape how GII etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.60 indicates GII has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. GII pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on GII?

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 GII snapshot

As of June 30, 2026, spot at $75.82, ATM IV 18.10%, IV rank 3.08%, expected move 5.19%. The covered call on GII 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 17-day expiry.

Why this covered call structure on GII specifically: GII IV at 18.10% is on the cheap side of its 1-year range, which means a premium-selling GII covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 5.19% (roughly $3.93 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GII expiries trade a higher absolute premium for lower per-day decay. Position sizing on GII should anchor to the underlying notional of $75.82 per share and to the trader's directional view on GII etf.

GII covered call setup

The GII 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 GII near $75.82, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GII chain at a 17-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 GII shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$75.82	long
Sell 1	Call	$80.00	$0.13

GII covered call risk and reward

Net Premium / Debit: -$7,569.00
Max Profit (per contract): $431.00
Max Loss (per contract): -$7,568.00
Breakeven(s): $75.69
Risk / Reward Ratio: 0.057

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.

GII covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on GII. 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%	-$7,568.00
$16.77	-77.9%	-$5,891.69
$33.54	-55.8%	-$4,215.38
$50.30	-33.7%	-$2,539.07
$67.06	-11.6%	-$862.75
$83.83	+10.6%	+$431.00
$100.59	+32.7%	+$431.00
$117.35	+54.8%	+$431.00
$134.11	+76.9%	+$431.00
$150.88	+99.0%	+$431.00

When traders use covered call on GII

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

GII thesis for this covered call

The market-implied 1-standard-deviation range for GII extends from approximately $71.89 on the downside to $79.75 on the upside. A GII covered call collects premium on an existing long GII position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether GII will breach that level within the expiration window. Current GII IV rank near 3.08% 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 GII at 18.10%. As a Financial Services name, GII options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GII-specific events.

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

Frequently asked questions

What is a covered call on GII?: A covered call on GII is the covered call strategy applied to GII (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 GII etf trading near $75.82, the strikes shown on this page are snapped to the nearest listed GII chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GII 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 GII covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 18.10%), the computed maximum profit is $431.00 per contract and the computed maximum loss is -$7,568.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GII covered call?: The breakeven for the GII covered call priced on this page is roughly $75.69 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 GII market-implied 1-standard-deviation expected move is approximately 5.19%; 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 GII?: Covered calls on GII are an income strategy run on existing GII 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 GII implied volatility affect this covered call?: GII ATM IV is at 18.10% with IV rank near 3.08%, 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.