How are IUSV 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 IUSV covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 11.80%), the computed maximum profit is $493.00 per contract and the computed maximum loss is -$11,506.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IUSV covered call?

The breakeven for the IUSV covered call priced on this page is roughly $115.07 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 IUSV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 3.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IUSV implied volatility affect this covered call?

IUSV ATM IV is at 11.80% with IV rank near 9.94%, 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.

IUSV Covered Call Strategy

IUSV (iShares Core S&P U.S. Value ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

The iShares Core S&P U.S. Value ETF (IUSV) aims to mirror the investment outcomes of a benchmark comprised of American companies. This index specifically targets U.S. stocks, encompassing both large and medium-sized businesses, which are identified by their inherent value attributes.

IUSV (iShares Core S&P U.S. Value ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $27.96B, a beta of 0.84 versus the broader market, a 52-week range of 97.14-115.52, average daily share volume of 650K, a public-listing history dating back to 2000. These structural characteristics shape how IUSV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.84 places IUSV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. IUSV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on IUSV?

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.

IUSV snapshot

As of August 14, 2026, spot at $115.38, ATM IV 11.80%, IV rank 9.94%, expected move 3.38%. The covered call on IUSV 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 IUSV specifically: IUSV IV at 11.80% is on the cheap side of its 1-year range, which means a premium-selling IUSV covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 3.38% (roughly $3.90 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 IUSV expiries trade a higher absolute premium for lower per-day decay. Position sizing on IUSV should anchor to the underlying notional of $115.38 per share and to the trader's directional view on IUSV etf.

IUSV covered call setup

The IUSV 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 IUSV at $115.38 on that close, the first option leg uses a $120.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IUSV 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 IUSV shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$115.38	long
Sell 1	Call	$120.00	$0.31

IUSV covered call risk and reward

Net Premium / Debit: -$11,507.00
Max Profit (per contract): $493.00
Max Loss (per contract): -$11,506.00
Breakeven(s): $115.07
Risk / Reward Ratio: 0.043

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.

IUSV covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on IUSV. 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%	-$11,506.00
$25.52	-77.9%	-$8,954.99
$51.03	-55.8%	-$6,403.99
$76.54	-33.7%	-$3,852.98
$102.05	-11.6%	-$1,301.98
$127.56	+10.6%	+$493.00
$153.07	+32.7%	+$493.00
$178.58	+54.8%	+$493.00
$204.09	+76.9%	+$493.00
$229.60	+99.0%	+$493.00

When traders use covered call on IUSV

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

IUSV thesis for this covered call

The market-implied 1-standard-deviation range for IUSV extends from approximately $111.48 on the downside to $119.28 on the upside. A IUSV covered call collects premium on an existing long IUSV position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether IUSV will breach that level within the expiration window. Current IUSV IV rank near 9.94% 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 IUSV at 11.80%. As a Financial Services name, IUSV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IUSV-specific events.

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

Frequently asked questions

What is a covered call on IUSV?: A covered call on IUSV is the covered call strategy applied to IUSV (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 IUSV etf at $115.38 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed IUSV chain strike and the premiums come straight from that session's bid/ask midpoint.
How are IUSV 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 IUSV covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 11.80%), the computed maximum profit is $493.00 per contract and the computed maximum loss is -$11,506.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IUSV covered call?: The breakeven for the IUSV covered call priced on this page is roughly $115.07 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 IUSV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 3.38%; 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 IUSV?: Covered calls on IUSV are an income strategy run on existing IUSV 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 IUSV implied volatility affect this covered call?: IUSV ATM IV is at 11.80% with IV rank near 9.94%, 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.