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 Exp. & Prod. Bull and Bear 2X ETFs seek daily investment results, before fees and expenses, of 200%, or 200% of the inverse (or opposite), of the performance of the S&P Oil & Gas Exploration & Production Select Industry Index. There is no guarantee the funds will achieve their stated investment objectives.
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 $331.9M, a beta of 0.29 versus the broader market, a 52-week range of 20.175-48.66, average daily share volume of 1.7M, 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 0.29 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 May 15, 2026, spot at $39.45, ATM IV 64.50%, IV rank 43.43%, expected move 18.49%. 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 34-day expiry.
Why this covered call structure on GUSH specifically: GUSH IV at 64.50% is mid-range versus its 1-year history, so the credit collected on a GUSH covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 18.49% (roughly $7.29 on the underlying). The 34-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 $39.45 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 $39.45, the first option leg uses a $41.00 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 34-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 | $39.45 | long |
| Sell 1 | Call | $41.00 | $2.40 |
GUSH covered call risk and reward
- Net Premium / Debit
- -$3,705.00
- Max Profit (per contract)
- $395.00
- Max Loss (per contract)
- -$3,704.00
- Breakeven(s)
- $37.05
- Risk / Reward Ratio
- 0.107
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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$3,704.00 |
| $8.73 | -77.9% | -$2,831.85 |
| $17.45 | -55.8% | -$1,959.70 |
| $26.17 | -33.7% | -$1,087.55 |
| $34.90 | -11.5% | -$215.40 |
| $43.62 | +10.6% | +$395.00 |
| $52.34 | +32.7% | +$395.00 |
| $61.06 | +54.8% | +$395.00 |
| $69.78 | +76.9% | +$395.00 |
| $78.50 | +99.0% | +$395.00 |
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 $32.16 on the downside to $46.74 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 43.43% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on GUSH should anchor more to the directional view and the expected-move geometry. 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 $39.45, 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 64.50%), the computed maximum profit is $395.00 per contract and the computed maximum loss is -$3,704.00 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 $37.05 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 18.49%; 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 64.50% with IV rank near 43.43%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.