How are QMOM 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 QMOM covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 27.70%), the computed maximum profit is $567.50 per contract and the computed maximum loss is -$7,531.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a QMOM covered call?

The breakeven for the QMOM covered call priced on this page is roughly $75.32 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 QMOM market-implied 1-standard-deviation expected move is approximately 7.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current QMOM implied volatility affect this covered call?

QMOM ATM IV is at 27.70% with IV rank near 30.24%, 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.

QMOM Covered Call Strategy

QMOM (Alpha Architect U.S. Quantitative Momentum ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

The Adviser employs a multi-step, quantitative, rules-based methodology to identify a portfolio of approximately 50 to 100 equity securities with the highest relative momentum. A “momentum” style of investing emphasizes investing in securities that have had higher recent total return performance compared to other securities. The Adviser then employs proprietary screens to eliminate companies with issues that may negatively impact their momentum. The fund may also invest up to 20% of its assets in cash and cash equivalents, other investment companies, as well as securities and other instruments.

QMOM (Alpha Architect U.S. Quantitative Momentum ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $391.8M, a beta of 1.32 versus the broader market, a 52-week range of 60.24-80.56, average daily share volume of 24K, a public-listing history dating back to 2015. These structural characteristics shape how QMOM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.32 indicates QMOM has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. QMOM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on QMOM?

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 QMOM snapshot

As of May 15, 2026, spot at $77.60, ATM IV 27.70%, IV rank 30.24%, expected move 7.94%. The covered call on QMOM 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 63-day expiry.

Why this covered call structure on QMOM specifically: QMOM IV at 27.70% is mid-range versus its 1-year history, so the credit collected on a QMOM covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 7.94% (roughly $6.16 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated QMOM expiries trade a higher absolute premium for lower per-day decay. Position sizing on QMOM should anchor to the underlying notional of $77.60 per share and to the trader's directional view on QMOM etf.

QMOM covered call setup

The QMOM 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 QMOM near $77.60, the first option leg uses a $81.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed QMOM chain at a 63-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 QMOM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$77.60	long
Sell 1	Call	$81.00	$2.28

QMOM covered call risk and reward

Net Premium / Debit: -$7,532.50
Max Profit (per contract): $567.50
Max Loss (per contract): -$7,531.50
Breakeven(s): $75.32
Risk / Reward Ratio: 0.075

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.

QMOM covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on QMOM. 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%	-$7,531.50
$17.17	-77.9%	-$5,815.83
$34.32	-55.8%	-$4,100.16
$51.48	-33.7%	-$2,384.49
$68.64	-11.6%	-$668.83
$85.79	+10.6%	+$567.50
$102.95	+32.7%	+$567.50
$120.11	+54.8%	+$567.50
$137.26	+76.9%	+$567.50
$154.42	+99.0%	+$567.50

When traders use covered call on QMOM

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

QMOM thesis for this covered call

The market-implied 1-standard-deviation range for QMOM extends from approximately $71.44 on the downside to $83.76 on the upside. A QMOM covered call collects premium on an existing long QMOM position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether QMOM will breach that level within the expiration window. Current QMOM IV rank near 30.24% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on QMOM should anchor more to the directional view and the expected-move geometry. As a Financial Services name, QMOM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to QMOM-specific events.

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

Frequently asked questions

What is a covered call on QMOM?: A covered call on QMOM is the covered call strategy applied to QMOM (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 QMOM etf trading near $77.60, the strikes shown on this page are snapped to the nearest listed QMOM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are QMOM 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 QMOM covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 27.70%), the computed maximum profit is $567.50 per contract and the computed maximum loss is -$7,531.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a QMOM covered call?: The breakeven for the QMOM covered call priced on this page is roughly $75.32 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 QMOM market-implied 1-standard-deviation expected move is approximately 7.94%; 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 QMOM?: Covered calls on QMOM are an income strategy run on existing QMOM 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 QMOM implied volatility affect this covered call?: QMOM ATM IV is at 27.70% with IV rank near 30.24%, 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.