How are MULL 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 MULL covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 187.80%), the computed maximum profit is $657.00 per contract and the computed maximum loss is -$3,282.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MULL covered call?

The breakeven for the MULL covered call priced on this page is roughly $32.83 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 MULL market-implied 1-standard-deviation expected move is approximately 53.84%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MULL implied volatility affect this covered call?

MULL ATM IV is at 187.80% with IV rank near 71.98%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

MULL Covered Call Strategy

MULL (GraniteShares 2x Long MU Daily ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.

The GraniteShares 2x Long MU Daily ETF (MULL) is designed to achieve investment returns, before accounting for its fees and expenses, that are double (200%) the daily percentage change of Micron Technology Inc.'s common stock (NASDAQ: MU). It's important to note that there's no assurance the fund will consistently meet this daily target. Investors should also be aware that, due to the impact of compounding, this fund should not be anticipated to deliver two times the cumulative return of MU over timeframes longer than a single trading day.

MULL (GraniteShares 2x Long MU Daily ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $212.6M, a beta of 9.68 versus the broader market, a 52-week range of 0.5872-43.5264, average daily share volume of 450K, a public-listing history dating back to 2024. These structural characteristics shape how MULL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 9.68 indicates MULL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. MULL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on MULL?

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 MULL snapshot

As of June 30, 2026, spot at $37.48, ATM IV 187.80%, IV rank 71.98%, expected move 53.84%. The covered call on MULL 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 17-day expiry.

Why this covered call structure on MULL specifically: MULL IV at 187.80% is rich versus its 1-year range, which favors premium-selling structures like a MULL covered call, with a market-implied 1-standard-deviation move of approximately 53.84% (roughly $20.18 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MULL expiries trade a higher absolute premium for lower per-day decay. Position sizing on MULL should anchor to the underlying notional of $37.48 per share and to the trader's directional view on MULL etf.

MULL covered call setup

The MULL 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 MULL near $37.48, the first option leg uses a $39.40 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MULL chain at a 17-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 MULL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$37.48	long
Sell 1	Call	$39.40	$4.65

MULL covered call risk and reward

Net Premium / Debit: -$3,283.00
Max Profit (per contract): $657.00
Max Loss (per contract): -$3,282.00
Breakeven(s): $32.83
Risk / Reward Ratio: 0.200

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.

MULL covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on MULL. 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%	-$3,282.00
$8.30	-77.9%	-$2,453.41
$16.58	-55.8%	-$1,624.81
$24.87	-33.7%	-$796.22
$33.15	-11.5%	+$32.37
$41.44	+10.6%	+$657.00
$49.73	+32.7%	+$657.00
$58.01	+54.8%	+$657.00
$66.30	+76.9%	+$657.00
$74.58	+99.0%	+$657.00

When traders use covered call on MULL

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

MULL thesis for this covered call

The market-implied 1-standard-deviation range for MULL extends from approximately $17.30 on the downside to $57.66 on the upside. A MULL covered call collects premium on an existing long MULL position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether MULL will breach that level within the expiration window. Current MULL IV rank near 71.98% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on MULL at 187.80%. As a Financial Services name, MULL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MULL-specific events.

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

Frequently asked questions

What is a covered call on MULL?: A covered call on MULL is the covered call strategy applied to MULL (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 MULL etf trading near $37.48, the strikes shown on this page are snapped to the nearest listed MULL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MULL 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 MULL covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 187.80%), the computed maximum profit is $657.00 per contract and the computed maximum loss is -$3,282.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MULL covered call?: The breakeven for the MULL covered call priced on this page is roughly $32.83 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 MULL market-implied 1-standard-deviation expected move is approximately 53.84%; 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 MULL?: Covered calls on MULL are an income strategy run on existing MULL 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 MULL implied volatility affect this covered call?: MULL ATM IV is at 187.80% with IV rank near 71.98%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.