HIMZ Covered Call Strategy
HIMZ (Daily Target 2X Long HIMS ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Defiance Daily Target 2X Short HIMS ETF (the “Fund”) seeks daily investment results, before fees and expenses, of two times the inverse (-200%) of the daily percentage change in the share price of Hims & Hers Health, Inc. (NYSE: HIMS). Because the Fund seeks daily inverse leveraged investment results, it is very different from most other exchange-traded funds and there is no guarantee that the Fund will meet its stated objective. The Fund should not be expected to provide -200% of the cumulative return of HIMS for periods greater than a single trading day.
HIMZ (Daily Target 2X Long HIMS ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $11.5M, a beta of 5.45 versus the broader market, a 52-week range of 12.376-782.18, average daily share volume of 2.3M, a public-listing history dating back to 2025. These structural characteristics shape how HIMZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 5.45 indicates HIMZ has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. HIMZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on HIMZ?
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 HIMZ snapshot
As of May 15, 2026, spot at $28.80, ATM IV 159.00%, IV rank 15.70%, expected move 45.58%. The covered call on HIMZ 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 HIMZ specifically: HIMZ IV at 159.00% is on the cheap side of its 1-year range, which means a premium-selling HIMZ covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 45.58% (roughly $13.13 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 HIMZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on HIMZ should anchor to the underlying notional of $28.80 per share and to the trader's directional view on HIMZ etf.
HIMZ covered call setup
The HIMZ 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 HIMZ near $28.80, the first option leg uses a $30.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HIMZ 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 HIMZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $28.80 | long |
| Sell 1 | Call | $30.00 | $4.55 |
HIMZ covered call risk and reward
- Net Premium / Debit
- -$2,425.00
- Max Profit (per contract)
- $575.00
- Max Loss (per contract)
- -$2,424.00
- Breakeven(s)
- $24.25
- Risk / Reward Ratio
- 0.237
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.
HIMZ covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on HIMZ. 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% | -$2,424.00 |
| $6.38 | -77.9% | -$1,787.33 |
| $12.74 | -55.8% | -$1,150.65 |
| $19.11 | -33.6% | -$513.98 |
| $25.48 | -11.5% | +$122.69 |
| $31.84 | +10.6% | +$575.00 |
| $38.21 | +32.7% | +$575.00 |
| $44.58 | +54.8% | +$575.00 |
| $50.94 | +76.9% | +$575.00 |
| $57.31 | +99.0% | +$575.00 |
When traders use covered call on HIMZ
Covered calls on HIMZ are an income strategy run on existing HIMZ etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
HIMZ thesis for this covered call
The market-implied 1-standard-deviation range for HIMZ extends from approximately $15.67 on the downside to $41.93 on the upside. A HIMZ covered call collects premium on an existing long HIMZ position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether HIMZ will breach that level within the expiration window. Current HIMZ IV rank near 15.70% 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 HIMZ at 159.00%. As a Financial Services name, HIMZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HIMZ-specific events.
HIMZ 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. HIMZ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HIMZ alongside the broader basket even when HIMZ-specific fundamentals are unchanged. Short-premium structures like a covered call on HIMZ carry tail risk when realized volatility exceeds the implied move; review historical HIMZ earnings reactions and macro stress periods before sizing. Always rebuild the position from current HIMZ chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on HIMZ?
- A covered call on HIMZ is the covered call strategy applied to HIMZ (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 HIMZ etf trading near $28.80, the strikes shown on this page are snapped to the nearest listed HIMZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HIMZ 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 HIMZ covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 159.00%), the computed maximum profit is $575.00 per contract and the computed maximum loss is -$2,424.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HIMZ covered call?
- The breakeven for the HIMZ covered call priced on this page is roughly $24.25 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 HIMZ market-implied 1-standard-deviation expected move is approximately 45.58%; 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 HIMZ?
- Covered calls on HIMZ are an income strategy run on existing HIMZ 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 HIMZ implied volatility affect this covered call?
- HIMZ ATM IV is at 159.00% with IV rank near 15.70%, 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.