KOID Covered Call Strategy
KOID (KraneShares Global Humanoid Robotics and Embodied Intelligence Index ETF), in the Financial Services sector, (Asset Management - Global industry), listed on NASDAQ.
Under normal market conditions, this fund dedicates a minimum of 80% of its total assets to investments directly included in its benchmark index or to those with similar economic characteristics. The underlying index is designed to monitor the equity performance of companies primarily exposed to Asian markets, specifically those classified by FactSet within sub-industries related to robotics and/or artificial intelligence (AI). Please note that this fund operates as a non-diversified investment vehicle.
KOID (KraneShares Global Humanoid Robotics and Embodied Intelligence Index ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $316.9M, a beta of 2.08 versus the broader market, a 52-week range of 27.74-43.32, average daily share volume of 157K, a public-listing history dating back to 2025. These structural characteristics shape how KOID etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.08 indicates KOID has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. KOID pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on KOID?
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.
KOID snapshot
As of August 14, 2026, spot at $39.32, ATM IV 30.20%, expected move 8.66%. The covered call on KOID 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 KOID specifically: IV rank is unavailable in the current snapshot, so regime-based timing for KOID is inferred from ATM IV at 30.20% alone, with a market-implied 1-standard-deviation move of approximately 8.66% (roughly $3.40 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 KOID expiries trade a higher absolute premium for lower per-day decay. Position sizing on KOID should anchor to the underlying notional of $39.32 per share and to the trader's directional view on KOID etf.
KOID covered call setup
The KOID 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 KOID at $39.32 on that close, 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 KOID 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 KOID shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $39.32 | long |
| Sell 1 | Call | $41.00 | $1.03 |
KOID covered call risk and reward
- Net Premium / Debit
- -$3,829.00
- Max Profit (per contract)
- $271.00
- Max Loss (per contract)
- -$3,828.00
- Breakeven(s)
- $38.29
- Risk / Reward Ratio
- 0.071
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.
KOID covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on KOID. 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% | -$3,828.00 |
| $8.70 | -77.9% | -$2,958.72 |
| $17.40 | -55.8% | -$2,089.45 |
| $26.09 | -33.7% | -$1,220.17 |
| $34.78 | -11.5% | -$350.89 |
| $43.47 | +10.6% | +$271.00 |
| $52.17 | +32.7% | +$271.00 |
| $60.86 | +54.8% | +$271.00 |
| $69.55 | +76.9% | +$271.00 |
| $78.24 | +99.0% | +$271.00 |
When traders use covered call on KOID
Covered calls on KOID are an income strategy run on existing KOID etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
KOID thesis for this covered call
The market-implied 1-standard-deviation range for KOID extends from approximately $35.92 on the downside to $42.72 on the upside. A KOID covered call collects premium on an existing long KOID position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether KOID will breach that level within the expiration window. As a Financial Services name, KOID options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KOID-specific events.
KOID 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. KOID positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KOID alongside the broader basket even when KOID-specific fundamentals are unchanged. Short-premium structures like a covered call on KOID carry tail risk when realized volatility exceeds the implied move; review historical KOID earnings reactions and macro stress periods before sizing. Always rebuild the position from current KOID chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on KOID?
- A covered call on KOID is the covered call strategy applied to KOID (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 KOID etf at $39.32 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed KOID chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are KOID 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 KOID covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 30.20%), the computed maximum profit is $271.00 per contract and the computed maximum loss is -$3,828.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KOID covered call?
- The breakeven for the KOID covered call priced on this page is roughly $38.29 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 KOID market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.66%; 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 KOID?
- Covered calls on KOID are an income strategy run on existing KOID 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 KOID implied volatility affect this covered call?
- Current KOID ATM IV is 30.20%; IV rank context is unavailable in the current snapshot.