ONDL Covered Call Strategy
ONDL (Daily Target 2X Long ONDS ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on CBOE.
This fund aims to generate daily returns, before fees and expenses, that are double (200%) the daily percentage change observed in the share price of Ondas Holdings Inc. (Nasdaq: ONDS). It is critical to understand that this investment objective applies strictly to a single trading day and is not designed to achieve similar results over longer periods.
ONDL (Daily Target 2X Long ONDS ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $497,440, a beta of 4.89 versus the broader market, a 52-week range of 4.7-59.29, average daily share volume of 1.6M, a public-listing history dating back to 2025. These structural characteristics shape how ONDL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 4.89 indicates ONDL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a covered call on ONDL?
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.
ONDL snapshot
As of September 29, 2026, spot at $5.50, ATM IV 189.40%, expected move 54.30%. The covered call on ONDL below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 52-day expiry.
Why this covered call structure on ONDL specifically: IV rank is unavailable in the current snapshot, so regime-based timing for ONDL is inferred from ATM IV at 189.40% alone, with a market-implied 1-standard-deviation move of approximately 54.30% (roughly $2.99 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ONDL expiries trade a higher absolute premium for lower per-day decay. Position sizing on ONDL should anchor to the underlying notional of $5.50 per share and to the trader's directional view on ONDL etf.
ONDL covered call setup
The ONDL covered call below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ONDL at $5.50 on that close, the first option leg uses a $6.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ONDL chain at a 52-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 ONDL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $5.50 | long |
| Sell 1 | Call | $6.00 | $1.23 |
ONDL covered call risk and reward
- Net Premium / Debit
- -$427.50
- Max Profit (per contract)
- $172.50
- Max Loss (per contract)
- -$426.50
- Breakeven(s)
- $4.28
- Risk / Reward Ratio
- 0.404
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.
ONDL covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on ONDL. 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 | -99.8% | -$426.50 |
| $1.22 | -77.7% | -$305.00 |
| $2.44 | -55.6% | -$183.51 |
| $3.65 | -33.5% | -$62.01 |
| $4.87 | -11.5% | +$59.49 |
| $6.08 | +10.6% | +$172.50 |
| $7.30 | +32.7% | +$172.50 |
| $8.51 | +54.8% | +$172.50 |
| $9.73 | +76.9% | +$172.50 |
| $10.94 | +99.0% | +$172.50 |
When traders use covered call on ONDL
Covered calls on ONDL are an income strategy run on existing ONDL etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
ONDL thesis for this covered call
The market-implied 1-standard-deviation range for ONDL extends from approximately $2.51 on the downside to $8.49 on the upside. A ONDL covered call collects premium on an existing long ONDL position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether ONDL will breach that level within the expiration window. As a Financial Services name, ONDL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ONDL-specific events.
ONDL 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. ONDL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ONDL alongside the broader basket even when ONDL-specific fundamentals are unchanged. Short-premium structures like a covered call on ONDL carry tail risk when realized volatility exceeds the implied move; review historical ONDL earnings reactions and macro stress periods before sizing. Always rebuild the position from current ONDL chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on ONDL?
- A covered call on ONDL is the covered call strategy applied to ONDL (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 ONDL etf at $5.50 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed ONDL chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ONDL 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 ONDL covered call priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 189.40%), the computed maximum profit is $172.50 per contract and the computed maximum loss is -$426.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ONDL covered call?
- The breakeven for the ONDL covered call priced on this page is roughly $4.28 at expiration, derived from the September 29, 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 ONDL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 54.30%; 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 ONDL?
- Covered calls on ONDL are an income strategy run on existing ONDL 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 ONDL implied volatility affect this covered call?
- Current ONDL ATM IV is 189.40%; IV rank context is unavailable in the current snapshot.