MAGX Long Call Strategy
MAGX (Roundhill Investments - Daily 2X Long Magnificent Seven ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on CBOE.
The Roundhill Daily 2X Long Magnificent Seven ETF (the “Fund”) seeks daily leveraged investment results, before fees and expenses, that correspond to two times (2X) the performance of the Roundhill Magnificent Seven ETF (the “Magnificent Seven ETF”). The Fund does not seek to achieve its stated investment objective for a period of time different than a trading day. As a result, the Fund may be riskier than alternatives that do not use leverage because the Fund’s objective is to magnify the daily performance of the Magnificent Seven ETF. The Fund has a daily leveraged investment objective and the Fund’s performance for periods greater than a trading day will be the result of each day’s returns compounded over the period, which is very likely to differ from two times (2X) the Magnificent Seven ETF’s performance, before fees and expenses.
MAGX (Roundhill Investments - Daily 2X Long Magnificent Seven ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $55.1M, a beta of 2.96 versus the broader market, a 52-week range of 36.23-63.47, average daily share volume of 101K, a public-listing history dating back to 2024. These structural characteristics shape how MAGX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.96 indicates MAGX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. MAGX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long call on MAGX?
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.
Current MAGX snapshot
As of May 15, 2026, spot at $61.47, ATM IV 43.70%, IV rank 14.48%, expected move 12.53%. The long call on MAGX 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 34-day expiry.
Why this long call structure on MAGX specifically: MAGX IV at 43.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a MAGX long call, with a market-implied 1-standard-deviation move of approximately 12.53% (roughly $7.70 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MAGX expiries trade a higher absolute premium for lower per-day decay. Position sizing on MAGX should anchor to the underlying notional of $61.47 per share and to the trader's directional view on MAGX etf.
MAGX long call setup
The MAGX long 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 MAGX near $61.47, the first option leg uses a $61.67 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MAGX chain at a 34-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 MAGX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $61.67 | $2.80 |
MAGX long call risk and reward
- Net Premium / Debit
- -$280.00
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$280.00
- Breakeven(s)
- $64.47
- Risk / Reward Ratio
- Unbounded
Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium.
MAGX long call payoff curve
Modeled P&L at expiration across a range of underlying prices for the long call on MAGX. 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% | -$280.00 |
| $13.60 | -77.9% | -$280.00 |
| $27.19 | -55.8% | -$280.00 |
| $40.78 | -33.7% | -$280.00 |
| $54.37 | -11.5% | -$280.00 |
| $67.96 | +10.6% | +$349.13 |
| $81.55 | +32.7% | +$1,708.15 |
| $95.14 | +54.8% | +$3,067.18 |
| $108.73 | +76.9% | +$4,426.20 |
| $122.32 | +99.0% | +$5,785.23 |
When traders use long call on MAGX
Long calls on MAGX express a bullish thesis with defined risk; traders use them ahead of MAGX catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
MAGX thesis for this long call
The market-implied 1-standard-deviation range for MAGX extends from approximately $53.77 on the downside to $69.17 on the upside. A MAGX 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 MAGX IV rank near 14.48% 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 MAGX at 43.70%. As a Financial Services name, MAGX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MAGX-specific events.
MAGX 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. MAGX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MAGX alongside the broader basket even when MAGX-specific fundamentals are unchanged. Long-premium structures like a long call on MAGX 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 MAGX chain quotes before placing a trade.
Frequently asked questions
- What is a long call on MAGX?
- A long call on MAGX is the long call strategy applied to MAGX (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 MAGX etf trading near $61.47, the strikes shown on this page are snapped to the nearest listed MAGX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MAGX 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 MAGX long call priced from the end-of-day chain at a 30-day expiry (ATM IV 43.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$280.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MAGX long call?
- The breakeven for the MAGX long call priced on this page is roughly $64.47 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 MAGX market-implied 1-standard-deviation expected move is approximately 12.53%; 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 MAGX?
- Long calls on MAGX express a bullish thesis with defined risk; traders use them ahead of MAGX catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
- How does current MAGX implied volatility affect this long call?
- MAGX ATM IV is at 43.70% with IV rank near 14.48%, 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.