How are GUNR 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 GUNR covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 14.80%), the computed maximum profit is $302.00 per contract and the computed maximum loss is -$4,897.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GUNR covered call?

The breakeven for the GUNR covered call priced on this page is roughly $48.98 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 GUNR market-implied 1-standard-deviation expected move is approximately 4.24%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GUNR implied volatility affect this covered call?

GUNR ATM IV is at 14.80% with IV rank near 0.80%, 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.

GUNR Covered Call Strategy

GUNR (FlexShares Morningstar Global Upstream Natural Resources Index Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.

This fund is tailored for investors looking to capitalize on a wide interpretation of global real assets. The FlexShares Morningstar Global Upstream Natural Resources Index Fund strives to mirror the total return, encompassing both capital appreciation and income, of the Morningstar Global Upstream Natural Resources Index, prior to accounting for any charges or expenses.

GUNR (FlexShares Morningstar Global Upstream Natural Resources Index Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $7.37B, a beta of 0.42 versus the broader market, a 52-week range of 39.86-56.35, average daily share volume of 436K, a public-listing history dating back to 2011. These structural characteristics shape how GUNR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.42 indicates GUNR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. GUNR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on GUNR?

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 GUNR snapshot

As of June 30, 2026, spot at $49.22, ATM IV 14.80%, IV rank 0.80%, expected move 4.24%. The covered call on GUNR 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 GUNR specifically: GUNR IV at 14.80% is on the cheap side of its 1-year range, which means a premium-selling GUNR covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 4.24% (roughly $2.09 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 GUNR expiries trade a higher absolute premium for lower per-day decay. Position sizing on GUNR should anchor to the underlying notional of $49.22 per share and to the trader's directional view on GUNR etf.

GUNR covered call setup

The GUNR 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 GUNR near $49.22, the first option leg uses a $52.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GUNR 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 GUNR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$49.22	long
Sell 1	Call	$52.00	$0.24

GUNR covered call risk and reward

Net Premium / Debit: -$4,898.00
Max Profit (per contract): $302.00
Max Loss (per contract): -$4,897.00
Breakeven(s): $48.98
Risk / Reward Ratio: 0.062

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.

GUNR covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on GUNR. 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%	-$4,897.00
$10.89	-77.9%	-$3,808.83
$21.77	-55.8%	-$2,720.66
$32.66	-33.7%	-$1,632.49
$43.54	-11.5%	-$544.32
$54.42	+10.6%	+$302.00
$65.30	+32.7%	+$302.00
$76.18	+54.8%	+$302.00
$87.06	+76.9%	+$302.00
$97.95	+99.0%	+$302.00

When traders use covered call on GUNR

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

GUNR thesis for this covered call

The market-implied 1-standard-deviation range for GUNR extends from approximately $47.13 on the downside to $51.31 on the upside. A GUNR covered call collects premium on an existing long GUNR position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether GUNR will breach that level within the expiration window. Current GUNR IV rank near 0.80% 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 GUNR at 14.80%. As a Financial Services name, GUNR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GUNR-specific events.

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

Frequently asked questions

What is a covered call on GUNR?: A covered call on GUNR is the covered call strategy applied to GUNR (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 GUNR etf trading near $49.22, the strikes shown on this page are snapped to the nearest listed GUNR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GUNR 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 GUNR covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 14.80%), the computed maximum profit is $302.00 per contract and the computed maximum loss is -$4,897.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GUNR covered call?: The breakeven for the GUNR covered call priced on this page is roughly $48.98 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 GUNR market-implied 1-standard-deviation expected move is approximately 4.24%; 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 GUNR?: Covered calls on GUNR are an income strategy run on existing GUNR 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 GUNR implied volatility affect this covered call?: GUNR ATM IV is at 14.80% with IV rank near 0.80%, 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.