How are NVDS 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 NVDS covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 56.20%), the computed maximum profit is $192.00 per contract and the computed maximum loss is -$2,207.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NVDS covered call?

The breakeven for the NVDS covered call priced on this page is roughly $22.08 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 NVDS market-implied 1-standard-deviation expected move is approximately 16.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NVDS implied volatility affect this covered call?

NVDS ATM IV is at 56.20% with IV rank near 31.49%, 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.

NVDS Covered Call Strategy

NVDS (Tradr 1.5X Short NVDA Daily ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.

This actively managed Exchange Traded Fund (ETF) aims to deliver, on a daily basis and prior to any charges or expenses, a return that is negative 125% of NVIDIA (NVDA) stock's daily performance. Its primary method for achieving this objective is through entering into one or more daily swap contracts linked to NVDA. It is paramount to note that this performance target is strictly for a single trading day and is not intended to apply to any periods exceeding one day. In typical market environments, the fund's manager commits a minimum of 80% of its assets to financial instruments engineered to provide this inverse 1.25x leveraged exposure to NVDA's daily fluctuations. The fund operates with a concentrated, non-diversified investment approach.

NVDS (Tradr 1.5X Short NVDA Daily ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $28.9M, a beta of -2.22 versus the broader market, a 52-week range of 18.291-46.02, average daily share volume of 395K, a public-listing history dating back to 2022. These structural characteristics shape how NVDS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -2.22 indicates NVDS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. NVDS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on NVDS?

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 NVDS snapshot

As of June 30, 2026, spot at $22.93, ATM IV 56.20%, IV rank 31.49%, expected move 16.11%. The covered call on NVDS 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 NVDS specifically: NVDS IV at 56.20% is mid-range versus its 1-year history, so the credit collected on a NVDS covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 16.11% (roughly $3.69 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 NVDS expiries trade a higher absolute premium for lower per-day decay. Position sizing on NVDS should anchor to the underlying notional of $22.93 per share and to the trader's directional view on NVDS etf.

NVDS covered call setup

The NVDS 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 NVDS near $22.93, the first option leg uses a $24.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NVDS 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 NVDS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$22.93	long
Sell 1	Call	$24.00	$0.85

NVDS covered call risk and reward

Net Premium / Debit: -$2,208.00
Max Profit (per contract): $192.00
Max Loss (per contract): -$2,207.00
Breakeven(s): $22.08
Risk / Reward Ratio: 0.087

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.

NVDS covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on NVDS. 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%	-$2,207.00
$5.08	-77.9%	-$1,700.12
$10.15	-55.7%	-$1,193.23
$15.22	-33.6%	-$686.35
$20.29	-11.5%	-$179.46
$25.35	+10.6%	+$192.00
$30.42	+32.7%	+$192.00
$35.49	+54.8%	+$192.00
$40.56	+76.9%	+$192.00
$45.63	+99.0%	+$192.00

When traders use covered call on NVDS

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

NVDS thesis for this covered call

The market-implied 1-standard-deviation range for NVDS extends from approximately $19.24 on the downside to $26.62 on the upside. A NVDS covered call collects premium on an existing long NVDS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether NVDS will breach that level within the expiration window. Current NVDS IV rank near 31.49% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on NVDS should anchor more to the directional view and the expected-move geometry. As a Financial Services name, NVDS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NVDS-specific events.

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

Frequently asked questions

What is a covered call on NVDS?: A covered call on NVDS is the covered call strategy applied to NVDS (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 NVDS etf trading near $22.93, the strikes shown on this page are snapped to the nearest listed NVDS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are NVDS 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 NVDS covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 56.20%), the computed maximum profit is $192.00 per contract and the computed maximum loss is -$2,207.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NVDS covered call?: The breakeven for the NVDS covered call priced on this page is roughly $22.08 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 NVDS market-implied 1-standard-deviation expected move is approximately 16.11%; 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 NVDS?: Covered calls on NVDS are an income strategy run on existing NVDS 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 NVDS implied volatility affect this covered call?: NVDS ATM IV is at 56.20% with IV rank near 31.49%, 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.