How are OZEM 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 OZEM covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 22.40%), the computed maximum profit is $196.00 per contract and the computed maximum loss is -$3,303.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a OZEM covered call?

The breakeven for the OZEM covered call priced on this page is roughly $33.04 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 OZEM market-implied 1-standard-deviation expected move is approximately 6.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current OZEM implied volatility affect this covered call?

OZEM ATM IV is at 22.40% with IV rank near 1.14%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

OZEM Covered Call Strategy

OZEM (Roundhill Investments - GLP-1 & Weight Loss ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

Roundhill considers weight loss medications, particularly GLP-1 agonists, to be among the most groundbreaking innovations currently reshaping the global pharmaceutical landscape. This conviction underpins the Roundhill GLP-1 & Weight Loss ETF (OZEM), which is distinguished as the world's inaugural ETF exclusively focused on the GLP-1 and broader weight management sector. Notably, OZEM employs an active management approach.

OZEM (Roundhill Investments - GLP-1 & Weight Loss ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $40.9M, a beta of 0.43 versus the broader market, a 52-week range of 23.22-37.15, average daily share volume of 19K, a public-listing history dating back to 2024. These structural characteristics shape how OZEM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.43 indicates OZEM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. OZEM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on OZEM?

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 OZEM snapshot

As of June 30, 2026, spot at $33.11, ATM IV 22.40%, IV rank 1.14%, expected move 6.42%. The covered call on OZEM 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 OZEM specifically: OZEM IV at 22.40% is on the cheap side of its 1-year range, which means a premium-selling OZEM covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 6.42% (roughly $2.13 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 OZEM expiries trade a higher absolute premium for lower per-day decay. Position sizing on OZEM should anchor to the underlying notional of $33.11 per share and to the trader's directional view on OZEM etf.

OZEM covered call setup

The OZEM 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 OZEM near $33.11, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OZEM 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 OZEM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$33.11	long
Sell 1	Call	$35.00	$0.07

OZEM covered call risk and reward

Net Premium / Debit: -$3,304.00
Max Profit (per contract): $196.00
Max Loss (per contract): -$3,303.00
Breakeven(s): $33.04
Risk / Reward Ratio: 0.059

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.

OZEM covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on OZEM. 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%	-$3,303.00
$7.33	-77.9%	-$2,571.03
$14.65	-55.8%	-$1,839.06
$21.97	-33.6%	-$1,107.09
$29.29	-11.5%	-$375.12
$36.61	+10.6%	+$196.00
$43.93	+32.7%	+$196.00
$51.25	+54.8%	+$196.00
$58.57	+76.9%	+$196.00
$65.89	+99.0%	+$196.00

When traders use covered call on OZEM

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

OZEM thesis for this covered call

The market-implied 1-standard-deviation range for OZEM extends from approximately $30.98 on the downside to $35.24 on the upside. A OZEM covered call collects premium on an existing long OZEM position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether OZEM will breach that level within the expiration window. Current OZEM IV rank near 1.14% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on OZEM at 22.40%. As a Financial Services name, OZEM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OZEM-specific events.

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

Frequently asked questions

What is a covered call on OZEM?: A covered call on OZEM is the covered call strategy applied to OZEM (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 OZEM etf trading near $33.11, the strikes shown on this page are snapped to the nearest listed OZEM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are OZEM 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 OZEM covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 22.40%), the computed maximum profit is $196.00 per contract and the computed maximum loss is -$3,303.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a OZEM covered call?: The breakeven for the OZEM covered call priced on this page is roughly $33.04 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 OZEM market-implied 1-standard-deviation expected move is approximately 6.42%; 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 OZEM?: Covered calls on OZEM are an income strategy run on existing OZEM 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 OZEM implied volatility affect this covered call?: OZEM ATM IV is at 22.40% with IV rank near 1.14%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.