How are IJS 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 IJS covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 18.40%), the computed maximum profit is $962.00 per contract and the computed maximum loss is -$14,037.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IJS covered call?

The breakeven for the IJS covered call priced on this page is roughly $140.38 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The IJS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.28%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IJS implied volatility affect this covered call?

IJS ATM IV is at 18.40% with IV rank near 0.71%, 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.

IJS Covered Call Strategy

IJS (iShares S&P Small-Cap 600 Value ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The iShares S&P Small-Cap 600 Value ETF (IJS) is structured to replicate the investment returns of a specific underlying index. This index is composed of American companies with smaller market capitalizations that are distinguished by their inherent value characteristics.

IJS (iShares S&P Small-Cap 600 Value ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $8.35B, a beta of 1.01 versus the broader market, a 52-week range of 104.53-140.39, average daily share volume of 427K, a public-listing history dating back to 2000. These structural characteristics shape how IJS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.01 places IJS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. IJS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on IJS?

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.

IJS snapshot

As of August 14, 2026, spot at $140.66, ATM IV 18.40%, IV rank 0.71%, expected move 5.28%. The covered call on IJS below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this covered call structure on IJS specifically: IJS IV at 18.40% is on the cheap side of its 1-year range, which means a premium-selling IJS covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 5.28% (roughly $7.42 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated IJS expiries trade a higher absolute premium for lower per-day decay. Position sizing on IJS should anchor to the underlying notional of $140.66 per share and to the trader's directional view on IJS etf.

IJS covered call setup

The IJS covered call below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With IJS at $140.66 on that close, the first option leg uses a $150.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IJS chain at a 35-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 IJS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$140.66	long
Sell 1	Call	$150.00	$0.28

IJS covered call risk and reward

Net Premium / Debit: -$14,038.00
Max Profit (per contract): $962.00
Max Loss (per contract): -$14,037.00
Breakeven(s): $140.38
Risk / Reward Ratio: 0.069

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.

IJS covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on IJS. 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%	-$14,037.00
$31.11	-77.9%	-$10,927.04
$62.21	-55.8%	-$7,817.08
$93.31	-33.7%	-$4,707.12
$124.41	-11.6%	-$1,597.16
$155.51	+10.6%	+$962.00
$186.61	+32.7%	+$962.00
$217.71	+54.8%	+$962.00
$248.81	+76.9%	+$962.00
$279.91	+99.0%	+$962.00

When traders use covered call on IJS

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

IJS thesis for this covered call

The market-implied 1-standard-deviation range for IJS extends from approximately $133.24 on the downside to $148.08 on the upside. A IJS covered call collects premium on an existing long IJS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether IJS will breach that level within the expiration window. Current IJS IV rank near 0.71% 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 IJS at 18.40%. As a Financial Services name, IJS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IJS-specific events.

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

Frequently asked questions

What is a covered call on IJS?: A covered call on IJS is the covered call strategy applied to IJS (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 IJS etf at $140.66 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed IJS chain strike and the premiums come straight from that session's bid/ask midpoint.
How are IJS 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 IJS covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 18.40%), the computed maximum profit is $962.00 per contract and the computed maximum loss is -$14,037.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IJS covered call?: The breakeven for the IJS covered call priced on this page is roughly $140.38 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The IJS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.28%; 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 IJS?: Covered calls on IJS are an income strategy run on existing IJS 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 IJS implied volatility affect this covered call?: IJS ATM IV is at 18.40% with IV rank near 0.71%, 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.