How are NVDL 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 NVDL covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 94.74%), the computed maximum profit is $1,655.50 per contract and the computed maximum loss is -$10,843.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NVDL covered call?

The breakeven for the NVDL covered call priced on this page is roughly $108.45 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 NVDL market-implied 1-standard-deviation expected move is approximately 27.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NVDL implied volatility affect this covered call?

NVDL ATM IV is at 94.74% with IV rank near 72.22%, 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.

NVDL Covered Call Strategy

NVDL (GraniteShares 2x Long NVDA Daily ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

The Fund seeks daily investment results, before fees and expenses, of 2 times (200%) the daily percentage change of the common stock of NVIDIA Corp, (NASDAQ: NVDA) There is no guarantee that the Fund will meet its stated objective. The fund should not be expected to provide 2 times the cumulative return of NVDA for periods greater than a day.

NVDL (GraniteShares 2x Long NVDA Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $4.01B, a beta of 3.62 versus the broader market, a 52-week range of 48.08-120.61, average daily share volume of 9.1M, a public-listing history dating back to 2022. These structural characteristics shape how NVDL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.62 indicates NVDL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. NVDL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on NVDL?

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 NVDL snapshot

As of May 15, 2026, spot at $119.27, ATM IV 94.74%, IV rank 72.22%, expected move 27.16%. The covered call on NVDL 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 28-day expiry.

Why this covered call structure on NVDL specifically: NVDL IV at 94.74% is rich versus its 1-year range, which favors premium-selling structures like a NVDL covered call, with a market-implied 1-standard-deviation move of approximately 27.16% (roughly $32.40 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 NVDL expiries trade a higher absolute premium for lower per-day decay. Position sizing on NVDL should anchor to the underlying notional of $119.27 per share and to the trader's directional view on NVDL etf.

NVDL covered call setup

The NVDL 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 NVDL near $119.27, the first option leg uses a $125.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NVDL 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 NVDL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$119.27	long
Sell 1	Call	$125.00	$10.83

NVDL covered call risk and reward

Net Premium / Debit: -$10,844.50
Max Profit (per contract): $1,655.50
Max Loss (per contract): -$10,843.50
Breakeven(s): $108.45
Risk / Reward Ratio: 0.153

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.

NVDL covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on NVDL. 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%	-$10,843.50
$26.38	-77.9%	-$8,206.48
$52.75	-55.8%	-$5,569.47
$79.12	-33.7%	-$2,932.45
$105.49	-11.6%	-$295.44
$131.86	+10.6%	+$1,655.50
$158.23	+32.7%	+$1,655.50
$184.60	+54.8%	+$1,655.50
$210.97	+76.9%	+$1,655.50
$237.34	+99.0%	+$1,655.50

When traders use covered call on NVDL

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

NVDL thesis for this covered call

The market-implied 1-standard-deviation range for NVDL extends from approximately $86.87 on the downside to $151.67 on the upside. A NVDL covered call collects premium on an existing long NVDL position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether NVDL will breach that level within the expiration window. Current NVDL IV rank near 72.22% 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 NVDL at 94.74%. As a Financial Services name, NVDL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NVDL-specific events.

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

Frequently asked questions

What is a covered call on NVDL?: A covered call on NVDL is the covered call strategy applied to NVDL (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 NVDL etf trading near $119.27, the strikes shown on this page are snapped to the nearest listed NVDL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are NVDL 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 NVDL covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 94.74%), the computed maximum profit is $1,655.50 per contract and the computed maximum loss is -$10,843.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NVDL covered call?: The breakeven for the NVDL covered call priced on this page is roughly $108.45 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 NVDL market-implied 1-standard-deviation expected move is approximately 27.16%; 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 NVDL?: Covered calls on NVDL are an income strategy run on existing NVDL 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 NVDL implied volatility affect this covered call?: NVDL ATM IV is at 94.74% with IV rank near 72.22%, 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.