How are IAUI 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 IAUI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 19.60%), the computed maximum profit is $267.00 per contract and the computed maximum loss is -$4,832.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IAUI covered call?

The breakeven for the IAUI covered call priced on this page is roughly $48.33 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 IAUI market-implied 1-standard-deviation expected move is approximately 5.62%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IAUI implied volatility affect this covered call?

IAUI ATM IV is at 19.60% with IV rank near 2.32%, 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.

IAUI Covered Call Strategy

IAUI (NEOS Gold High Income ETF), in the Financial Services sector, (Asset Management - Income industry), listed on CBOE.

The NEOS Gold High Income ETF, referred to as "the Fund," is designed with a dual objective: to provide investors with substantial monthly income while also offering the potential for capital appreciation. It achieves these goals by strategically allocating its assets to various exchange-traded products (ETPs) that maintain direct holdings in gold.

IAUI (NEOS Gold High Income ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $106.0M, a beta of 0.24 versus the broader market, a 52-week range of 47.86-64.57, average daily share volume of 204K, a public-listing history dating back to 2025. These structural characteristics shape how IAUI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.24 indicates IAUI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. IAUI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on IAUI?

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 IAUI snapshot

As of June 29, 2026, spot at $48.48, ATM IV 19.60%, IV rank 2.32%, expected move 5.62%. The covered call on IAUI 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 18-day expiry.

Why this covered call structure on IAUI specifically: IAUI IV at 19.60% is on the cheap side of its 1-year range, which means a premium-selling IAUI covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 5.62% (roughly $2.72 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated IAUI expiries trade a higher absolute premium for lower per-day decay. Position sizing on IAUI should anchor to the underlying notional of $48.48 per share and to the trader's directional view on IAUI etf.

IAUI covered call setup

The IAUI 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 IAUI near $48.48, the first option leg uses a $51.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IAUI chain at a 18-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 IAUI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$48.48	long
Sell 1	Call	$51.00	$0.15

IAUI covered call risk and reward

Net Premium / Debit: -$4,833.00
Max Profit (per contract): $267.00
Max Loss (per contract): -$4,832.00
Breakeven(s): $48.33
Risk / Reward Ratio: 0.055

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.

IAUI covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on IAUI. 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%	-$4,832.00
$10.73	-77.9%	-$3,760.19
$21.45	-55.8%	-$2,688.38
$32.16	-33.7%	-$1,616.57
$42.88	-11.5%	-$544.76
$53.60	+10.6%	+$267.00
$64.32	+32.7%	+$267.00
$75.04	+54.8%	+$267.00
$85.75	+76.9%	+$267.00
$96.47	+99.0%	+$267.00

When traders use covered call on IAUI

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

IAUI thesis for this covered call

The market-implied 1-standard-deviation range for IAUI extends from approximately $45.76 on the downside to $51.20 on the upside. A IAUI covered call collects premium on an existing long IAUI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether IAUI will breach that level within the expiration window. Current IAUI IV rank near 2.32% 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 IAUI at 19.60%. As a Financial Services name, IAUI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IAUI-specific events.

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

Frequently asked questions

What is a covered call on IAUI?: A covered call on IAUI is the covered call strategy applied to IAUI (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 IAUI etf trading near $48.48, the strikes shown on this page are snapped to the nearest listed IAUI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are IAUI 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 IAUI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 19.60%), the computed maximum profit is $267.00 per contract and the computed maximum loss is -$4,832.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IAUI covered call?: The breakeven for the IAUI covered call priced on this page is roughly $48.33 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 IAUI market-implied 1-standard-deviation expected move is approximately 5.62%; 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 IAUI?: Covered calls on IAUI are an income strategy run on existing IAUI 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 IAUI implied volatility affect this covered call?: IAUI ATM IV is at 19.60% with IV rank near 2.32%, 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.