MAGS Long Call Strategy
MAGS (Roundhill Magnificent Seven ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
Listed Funds Trust - Roundhill Magnificent Seven ETF is an exchange traded fund launched by Listed Funds Trust. The fund is co-managed by Exchange Traded Concepts, LLC, Roundhill Financial Inc. It invests in public equity markets. The fund invests directly and through derivatives in stocks of companies operating across Information technology, semiconductors and semiconductor equipment, semiconductors, software and services, software, technology hardware and equipment, automotive, e-commerce discretionary and internet media & services sectors. The fund uses derivatives such as swaps, forwards to create its portfolio. The fund invests in growth and value stocks of large-cap companies.
MAGS (Roundhill Magnificent Seven ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $3.70B, a beta of 1.38 versus the broader market, a 52-week range of 55.085-71.16, average daily share volume of 4.3M, a public-listing history dating back to 2023, approximately 394 full-time employees. These structural characteristics shape how MAGS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.38 indicates MAGS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. MAGS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long call on MAGS?
A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration.
MAGS snapshot
As of August 14, 2026, spot at $68.31, ATM IV 20.80%, IV rank 20.13%, expected move 5.96%. The long call on MAGS 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 28-day expiry.
Why this long call structure on MAGS specifically: MAGS IV at 20.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a MAGS long call, with a market-implied 1-standard-deviation move of approximately 5.96% (roughly $4.07 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MAGS expiries trade a higher absolute premium for lower per-day decay. Position sizing on MAGS should anchor to the underlying notional of $68.31 per share and to the trader's directional view on MAGS etf.
MAGS long call setup
The MAGS long 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 MAGS at $68.31 on that close, the first option leg uses a $68.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MAGS chain at a 28-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 MAGS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $68.50 | $1.58 |
MAGS long call risk and reward
- Net Premium / Debit
- -$157.50
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$157.50
- Breakeven(s)
- $70.08
- Risk / Reward Ratio
- Unbounded
Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium.
MAGS long call payoff curve
Modeled P&L at expiration across a range of underlying prices for the long call on MAGS. 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% | -$157.50 |
| $15.11 | -77.9% | -$157.50 |
| $30.22 | -55.8% | -$157.50 |
| $45.32 | -33.7% | -$157.50 |
| $60.42 | -11.5% | -$157.50 |
| $75.52 | +10.6% | +$544.81 |
| $90.63 | +32.7% | +$2,055.07 |
| $105.73 | +54.8% | +$3,565.33 |
| $120.83 | +76.9% | +$5,075.59 |
| $135.93 | +99.0% | +$6,585.85 |
When traders use long call on MAGS
Long calls on MAGS express a bullish thesis with defined risk; traders use them ahead of MAGS catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
MAGS thesis for this long call
The market-implied 1-standard-deviation range for MAGS extends from approximately $64.24 on the downside to $72.38 on the upside. A MAGS long call expresses a directional view that the underlying closes above the strike plus premium at expiration, ideally with implied volatility holding or expanding to preserve extrinsic value through the hold period. Current MAGS IV rank near 20.13% 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 MAGS at 20.80%. As a Financial Services name, MAGS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MAGS-specific events.
MAGS long call positions are structurally 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. MAGS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MAGS alongside the broader basket even when MAGS-specific fundamentals are unchanged. Long-premium structures like a long call on MAGS are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current MAGS chain quotes before placing a trade.
Frequently asked questions
- What is a long call on MAGS?
- A long call on MAGS is the long call strategy applied to MAGS (etf). The strategy is structurally bullish: A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration. With MAGS etf at $68.31 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed MAGS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are MAGS long call max profit and max loss calculated?
- Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium. For the MAGS long call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 20.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$157.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MAGS long call?
- The breakeven for the MAGS long call priced on this page is roughly $70.08 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 MAGS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a long call on MAGS?
- Long calls on MAGS express a bullish thesis with defined risk; traders use them ahead of MAGS catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
- How does current MAGS implied volatility affect this long call?
- MAGS ATM IV is at 20.80% with IV rank near 20.13%, 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.