How are OBOR 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 OBOR covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 395.70%), the computed maximum profit is $184.00 per contract and the computed maximum loss is -$2,715.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a OBOR covered call?

The breakeven for the OBOR covered call priced on this page is roughly $27.16 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 OBOR market-implied 1-standard-deviation expected move is approximately 7.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current OBOR implied volatility affect this covered call?

OBOR ATM IV is at 395.70% with IV rank near 100.00%, 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.

OBOR Covered Call Strategy

OBOR (KraneShares MSCI One Belt One Road Index ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The fund will invest at least 80% of its net assets (plus borrowings for investment purposes) in instruments in its underlying index or in instruments that have economic characteristics similar to those in the underlying index. The underlying index is designed to measure the equity market performance of listed companies with high revenue exposure to the Chinese government's "One Belt, One Road" initiative, as determined by the provider of the underlying index.

OBOR (KraneShares MSCI One Belt One Road Index ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $4.2M, a beta of 0.75 versus the broader market, a 52-week range of 22.307-30.07, average daily share volume of 5K, a public-listing history dating back to 2017. These structural characteristics shape how OBOR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.75 places OBOR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. OBOR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on OBOR?

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 OBOR snapshot

As of May 15, 2026, spot at $27.75, ATM IV 395.70%, IV rank 100.00%, expected move 7.72%. The covered call on OBOR 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 34-day expiry.

Why this covered call structure on OBOR specifically: OBOR IV at 395.70% is rich versus its 1-year range, which favors premium-selling structures like a OBOR covered call, with a market-implied 1-standard-deviation move of approximately 7.72% (roughly $2.14 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OBOR expiries trade a higher absolute premium for lower per-day decay. Position sizing on OBOR should anchor to the underlying notional of $27.75 per share and to the trader's directional view on OBOR etf.

OBOR covered call setup

The OBOR 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 OBOR near $27.75, the first option leg uses a $29.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OBOR chain at a 34-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 OBOR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$27.75	long
Sell 1	Call	$29.00	$0.59

OBOR covered call risk and reward

Net Premium / Debit: -$2,716.00
Max Profit (per contract): $184.00
Max Loss (per contract): -$2,715.00
Breakeven(s): $27.16
Risk / Reward Ratio: 0.068

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.

OBOR covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on OBOR. 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%	-$2,715.00
$6.14	-77.9%	-$2,101.54
$12.28	-55.8%	-$1,488.09
$18.41	-33.6%	-$874.63
$24.55	-11.5%	-$261.17
$30.68	+10.6%	+$184.00
$36.82	+32.7%	+$184.00
$42.95	+54.8%	+$184.00
$49.09	+76.9%	+$184.00
$55.22	+99.0%	+$184.00

When traders use covered call on OBOR

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

OBOR thesis for this covered call

The market-implied 1-standard-deviation range for OBOR extends from approximately $25.61 on the downside to $29.89 on the upside. A OBOR covered call collects premium on an existing long OBOR position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether OBOR will breach that level within the expiration window. Current OBOR IV rank near 100.00% 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 OBOR at 395.70%. As a Financial Services name, OBOR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OBOR-specific events.

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

Frequently asked questions

What is a covered call on OBOR?: A covered call on OBOR is the covered call strategy applied to OBOR (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 OBOR etf trading near $27.75, the strikes shown on this page are snapped to the nearest listed OBOR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are OBOR 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 OBOR covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 395.70%), the computed maximum profit is $184.00 per contract and the computed maximum loss is -$2,715.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a OBOR covered call?: The breakeven for the OBOR covered call priced on this page is roughly $27.16 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 OBOR market-implied 1-standard-deviation expected move is approximately 7.72%; 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 OBOR?: Covered calls on OBOR are an income strategy run on existing OBOR 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 OBOR implied volatility affect this covered call?: OBOR ATM IV is at 395.70% with IV rank near 100.00%, 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.