NEMG Covered Call Strategy
NEMG (Leverage Shares 2x Long NEM Daily ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The fund is an actively managed ETF. The fund invests at least 80% of its net assets (plus borrowings for investment purposes) in financial instruments with economic characteristics that, in combination, provide 200% daily leveraged exposure to the price of NEM, consistent with the fund’s investment objective. The fund is non-diversified.
NEMG (Leverage Shares 2x Long NEM Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $394,969, a beta of 1.29 versus the broader market, a 52-week range of 12.245-33.47, average daily share volume of 13K, a public-listing history dating back to 2025. These structural characteristics shape how NEMG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.29 places NEMG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a covered call on NEMG?
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.
NEMG snapshot
As of August 14, 2026, spot at $20.59, ATM IV 81.60%, IV rank 46.60%, expected move 23.39%. The covered call on NEMG 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 NEMG specifically: NEMG IV at 81.60% is mid-range versus its 1-year history, so the credit collected on a NEMG covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 23.39% (roughly $4.82 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 NEMG expiries trade a higher absolute premium for lower per-day decay. Position sizing on NEMG should anchor to the underlying notional of $20.59 per share and to the trader's directional view on NEMG etf.
NEMG covered call setup
The NEMG 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 NEMG at $20.59 on that close, the first option leg uses a $22.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NEMG 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 NEMG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $20.59 | long |
| Sell 1 | Call | $22.00 | $1.63 |
NEMG covered call risk and reward
- Net Premium / Debit
- -$1,896.50
- Max Profit (per contract)
- $303.50
- Max Loss (per contract)
- -$1,895.50
- Breakeven(s)
- $18.97
- Risk / Reward Ratio
- 0.160
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.
NEMG covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on NEMG. 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% | -$1,895.50 |
| $4.56 | -77.8% | -$1,440.35 |
| $9.11 | -55.7% | -$985.21 |
| $13.66 | -33.6% | -$530.06 |
| $18.22 | -11.5% | -$74.92 |
| $22.77 | +10.6% | +$303.50 |
| $27.32 | +32.7% | +$303.50 |
| $31.87 | +54.8% | +$303.50 |
| $36.42 | +76.9% | +$303.50 |
| $40.97 | +99.0% | +$303.50 |
When traders use covered call on NEMG
Covered calls on NEMG are an income strategy run on existing NEMG etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
NEMG thesis for this covered call
The market-implied 1-standard-deviation range for NEMG extends from approximately $15.77 on the downside to $25.41 on the upside. A NEMG covered call collects premium on an existing long NEMG position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether NEMG will breach that level within the expiration window. Current NEMG IV rank near 46.60% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on NEMG should anchor more to the directional view and the expected-move geometry. As a Financial Services name, NEMG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NEMG-specific events.
NEMG 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. NEMG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NEMG alongside the broader basket even when NEMG-specific fundamentals are unchanged. Short-premium structures like a covered call on NEMG carry tail risk when realized volatility exceeds the implied move; review historical NEMG earnings reactions and macro stress periods before sizing. Always rebuild the position from current NEMG chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on NEMG?
- A covered call on NEMG is the covered call strategy applied to NEMG (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 NEMG etf at $20.59 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed NEMG chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are NEMG 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 NEMG covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 81.60%), the computed maximum profit is $303.50 per contract and the computed maximum loss is -$1,895.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NEMG covered call?
- The breakeven for the NEMG covered call priced on this page is roughly $18.97 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 NEMG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 23.39%; 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 NEMG?
- Covered calls on NEMG are an income strategy run on existing NEMG 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 NEMG implied volatility affect this covered call?
- NEMG ATM IV is at 81.60% with IV rank near 46.60%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.