How are NVDX 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 NVDX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 95.48%), the computed maximum profit is $314.00 per contract and the computed maximum loss is -$2,085.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NVDX covered call?

The breakeven for the NVDX covered call priced on this page is roughly $20.86 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 NVDX market-implied 1-standard-deviation expected move is approximately 27.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NVDX implied volatility affect this covered call?

NVDX ATM IV is at 95.48% with IV rank near 73.12%, 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.

NVDX Covered Call Strategy

NVDX (T-REX 2X Long NVIDIA Daily Target ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on CBOE.

The fund, under normal circumstances, invests in swap agreements that provide 200% daily exposure to NVDA equal to at least 80% of its net assets. The fund will enter into one or more swap agreements with major global financial institutions whereby the fund and the global financial institution will agree to exchange the return earned on an investment by the fund in NVDA that is equal, on a daily basis, to 200% of the value of the fund’s net assets. The fund is non-diversified.

NVDX (T-REX 2X Long NVIDIA Daily Target ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $503.0M, a beta of 4.20 versus the broader market, a 52-week range of 9.98-24.1, average daily share volume of 15.0M, a public-listing history dating back to 2023. These structural characteristics shape how NVDX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 4.20 indicates NVDX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. NVDX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on NVDX?

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 NVDX snapshot

As of May 15, 2026, spot at $22.71, ATM IV 95.48%, IV rank 73.12%, expected move 27.37%. The covered call on NVDX 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 NVDX specifically: NVDX IV at 95.48% is rich versus its 1-year range, which favors premium-selling structures like a NVDX covered call, with a market-implied 1-standard-deviation move of approximately 27.37% (roughly $6.22 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 NVDX expiries trade a higher absolute premium for lower per-day decay. Position sizing on NVDX should anchor to the underlying notional of $22.71 per share and to the trader's directional view on NVDX etf.

NVDX covered call setup

The NVDX 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 NVDX near $22.71, 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 NVDX 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 NVDX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$22.71	long
Sell 1	Call	$24.00	$1.85

NVDX covered call risk and reward

Net Premium / Debit: -$2,086.00
Max Profit (per contract): $314.00
Max Loss (per contract): -$2,085.00
Breakeven(s): $20.86
Risk / Reward Ratio: 0.151

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.

NVDX covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on NVDX. 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%	-$2,085.00
$5.03	-77.9%	-$1,582.98
$10.05	-55.7%	-$1,080.96
$15.07	-33.6%	-$578.94
$20.09	-11.5%	-$76.92
$25.11	+10.6%	+$314.00
$30.13	+32.7%	+$314.00
$35.15	+54.8%	+$314.00
$40.17	+76.9%	+$314.00
$45.19	+99.0%	+$314.00

When traders use covered call on NVDX

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

NVDX thesis for this covered call

The market-implied 1-standard-deviation range for NVDX extends from approximately $16.49 on the downside to $28.93 on the upside. A NVDX covered call collects premium on an existing long NVDX position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether NVDX will breach that level within the expiration window. Current NVDX IV rank near 73.12% 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 NVDX at 95.48%. As a Financial Services name, NVDX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NVDX-specific events.

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

Frequently asked questions

What is a covered call on NVDX?: A covered call on NVDX is the covered call strategy applied to NVDX (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 NVDX etf trading near $22.71, the strikes shown on this page are snapped to the nearest listed NVDX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are NVDX 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 NVDX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 95.48%), the computed maximum profit is $314.00 per contract and the computed maximum loss is -$2,085.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NVDX covered call?: The breakeven for the NVDX covered call priced on this page is roughly $20.86 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 NVDX market-implied 1-standard-deviation expected move is approximately 27.37%; 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 NVDX?: Covered calls on NVDX are an income strategy run on existing NVDX 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 NVDX implied volatility affect this covered call?: NVDX ATM IV is at 95.48% with IV rank near 73.12%, 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.