KOMP Covered Call Strategy
KOMP (State Street SPDR S&P Kensho New Economies Composite ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The State Street SPDR S&P Kensho New Economies Composite ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Kensho New Economies Composite Index (the "Index")Seeks to track an index utilizing artificial intelligence and a quantitative weighting methodology to pursue the potential of a new economy fueled by innovative companies disrupting traditional industries by leveraging advancements in exponential processing power, artificial intelligence, robotics, and automationMay provide an effective way to pursue long-term growth potential by targeting companies within the sectors driving innovation within the new economy
KOMP (State Street SPDR S&P Kensho New Economies Composite ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.66B, a beta of 1.58 versus the broader market, a 52-week range of 49.13-69.53, average daily share volume of 74K, a public-listing history dating back to 2018. These structural characteristics shape how KOMP etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.58 indicates KOMP has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. KOMP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on KOMP?
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 KOMP snapshot
As of May 15, 2026, spot at $68.13, ATM IV 26.70%, IV rank 5.63%, expected move 7.65%. The covered call on KOMP 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 98-day expiry.
Why this covered call structure on KOMP specifically: KOMP IV at 26.70% is on the cheap side of its 1-year range, which means a premium-selling KOMP covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.65% (roughly $5.22 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KOMP expiries trade a higher absolute premium for lower per-day decay. Position sizing on KOMP should anchor to the underlying notional of $68.13 per share and to the trader's directional view on KOMP etf.
KOMP covered call setup
The KOMP 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 KOMP near $68.13, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KOMP chain at a 98-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 KOMP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $68.13 | long |
| Sell 1 | Call | $70.00 | $2.85 |
KOMP covered call risk and reward
- Net Premium / Debit
- -$6,528.00
- Max Profit (per contract)
- $472.00
- Max Loss (per contract)
- -$6,527.00
- Breakeven(s)
- $65.28
- Risk / Reward Ratio
- 0.072
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.
KOMP covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on KOMP. 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% | -$6,527.00 |
| $15.07 | -77.9% | -$5,020.72 |
| $30.14 | -55.8% | -$3,514.44 |
| $45.20 | -33.7% | -$2,008.16 |
| $60.26 | -11.5% | -$501.87 |
| $75.32 | +10.6% | +$472.00 |
| $90.39 | +32.7% | +$472.00 |
| $105.45 | +54.8% | +$472.00 |
| $120.51 | +76.9% | +$472.00 |
| $135.58 | +99.0% | +$472.00 |
When traders use covered call on KOMP
Covered calls on KOMP are an income strategy run on existing KOMP etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
KOMP thesis for this covered call
The market-implied 1-standard-deviation range for KOMP extends from approximately $62.91 on the downside to $73.35 on the upside. A KOMP covered call collects premium on an existing long KOMP position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether KOMP will breach that level within the expiration window. Current KOMP IV rank near 5.63% 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 KOMP at 26.70%. As a Financial Services name, KOMP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KOMP-specific events.
KOMP 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. KOMP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KOMP alongside the broader basket even when KOMP-specific fundamentals are unchanged. Short-premium structures like a covered call on KOMP carry tail risk when realized volatility exceeds the implied move; review historical KOMP earnings reactions and macro stress periods before sizing. Always rebuild the position from current KOMP chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on KOMP?
- A covered call on KOMP is the covered call strategy applied to KOMP (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 KOMP etf trading near $68.13, the strikes shown on this page are snapped to the nearest listed KOMP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KOMP 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 KOMP covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 26.70%), the computed maximum profit is $472.00 per contract and the computed maximum loss is -$6,527.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KOMP covered call?
- The breakeven for the KOMP covered call priced on this page is roughly $65.28 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 KOMP market-implied 1-standard-deviation expected move is approximately 7.65%; 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 KOMP?
- Covered calls on KOMP are an income strategy run on existing KOMP 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 KOMP implied volatility affect this covered call?
- KOMP ATM IV is at 26.70% with IV rank near 5.63%, 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.