How are GUSH 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 GUSH covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 51.80%), the computed maximum profit is $217.50 per contract and the computed maximum loss is -$2,981.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GUSH covered call?

The breakeven for the GUSH covered call priced on this page is roughly $29.83 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 GUSH market-implied 1-standard-deviation expected move is approximately 14.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GUSH implied volatility affect this covered call?

GUSH ATM IV is at 51.80% with IV rank near 22.01%, 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.

GUSH Covered Call Strategy

GUSH (Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.

The Direxion Daily S&P Oil & Gas Exploration & Production Bull and Bear 2X ETFs aim to generate daily returns that, prior to considering fees and expenses, equate to double (200%) the performance, or double (200%) the inverse performance, of the S&P Oil & Gas Exploration & Production Select Industry Index. It is important to note that there is no guarantee these funds will consistently meet their specific investment goals.

GUSH (Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $277.3M, a beta of 0.11 versus the broader market, a 52-week range of 20.805-48.66, average daily share volume of 1.1M, a public-listing history dating back to 2015. These structural characteristics shape how GUSH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.11 indicates GUSH has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. GUSH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on GUSH?

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 GUSH snapshot

As of June 30, 2026, spot at $30.75, ATM IV 51.80%, IV rank 22.01%, expected move 14.85%. The covered call on GUSH 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 GUSH specifically: GUSH IV at 51.80% is on the cheap side of its 1-year range, which means a premium-selling GUSH covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 14.85% (roughly $4.57 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 GUSH expiries trade a higher absolute premium for lower per-day decay. Position sizing on GUSH should anchor to the underlying notional of $30.75 per share and to the trader's directional view on GUSH etf.

GUSH covered call setup

The GUSH 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 GUSH near $30.75, the first option leg uses a $32.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GUSH 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 GUSH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$30.75	long
Sell 1	Call	$32.00	$0.93

GUSH covered call risk and reward

Net Premium / Debit: -$2,982.50
Max Profit (per contract): $217.50
Max Loss (per contract): -$2,981.50
Breakeven(s): $29.83
Risk / Reward Ratio: 0.073

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.

GUSH covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on GUSH. 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%	-$2,981.50
$6.81	-77.9%	-$2,301.71
$13.61	-55.8%	-$1,621.92
$20.40	-33.6%	-$942.13
$27.20	-11.5%	-$262.34
$34.00	+10.6%	+$217.50
$40.80	+32.7%	+$217.50
$47.60	+54.8%	+$217.50
$54.39	+76.9%	+$217.50
$61.19	+99.0%	+$217.50

When traders use covered call on GUSH

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

GUSH thesis for this covered call

The market-implied 1-standard-deviation range for GUSH extends from approximately $26.18 on the downside to $35.32 on the upside. A GUSH covered call collects premium on an existing long GUSH position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether GUSH will breach that level within the expiration window. Current GUSH IV rank near 22.01% 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 GUSH at 51.80%. As a Financial Services name, GUSH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GUSH-specific events.

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

Frequently asked questions

What is a covered call on GUSH?: A covered call on GUSH is the covered call strategy applied to GUSH (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 GUSH etf trading near $30.75, the strikes shown on this page are snapped to the nearest listed GUSH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GUSH 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 GUSH covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 51.80%), the computed maximum profit is $217.50 per contract and the computed maximum loss is -$2,981.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GUSH covered call?: The breakeven for the GUSH covered call priced on this page is roughly $29.83 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 GUSH market-implied 1-standard-deviation expected move is approximately 14.85%; 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 GUSH?: Covered calls on GUSH are an income strategy run on existing GUSH 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 GUSH implied volatility affect this covered call?: GUSH ATM IV is at 51.80% with IV rank near 22.01%, 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.