QRFT Covered Call Strategy
QRFT (QRAFT AI-Enhanced U.S. Large Cap ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund is an actively-managed ETF that seeks to achieve its investment objective by utilizing an investment strategy enhanced by the use of artificial intelligence. The fund invests at least 80% of its net assets, plus the amounts of any borrowings for investment purposes, in securities of U.S.-listed large capitalization companies. In pursuing its investment objective, the Adviser consults a database generated by Qraft's AI Quantitative Investment System, which automatically evaluates and filters data according to parameters supporting a particular investment thesis. The fund is non-diversified.
QRFT (QRAFT AI-Enhanced U.S. Large Cap ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $15.0M, a beta of 1.07 versus the broader market, a 52-week range of 52.5-69.255, average daily share volume of 2K, a public-listing history dating back to 2019. These structural characteristics shape how QRFT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.07 places QRFT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. QRFT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on QRFT?
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 QRFT snapshot
As of May 15, 2026, spot at $68.63, ATM IV 14.80%, IV rank 0.58%, expected move 4.24%. The covered call on QRFT 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 QRFT specifically: QRFT IV at 14.80% is on the cheap side of its 1-year range, which means a premium-selling QRFT covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 4.24% (roughly $2.91 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 QRFT expiries trade a higher absolute premium for lower per-day decay. Position sizing on QRFT should anchor to the underlying notional of $68.63 per share and to the trader's directional view on QRFT etf.
QRFT covered call setup
The QRFT 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 QRFT near $68.63, the first option leg uses a $72.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed QRFT 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 QRFT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $68.63 | long |
| Sell 1 | Call | $72.00 | $0.59 |
QRFT covered call risk and reward
- Net Premium / Debit
- -$6,804.00
- Max Profit (per contract)
- $396.00
- Max Loss (per contract)
- -$6,803.00
- Breakeven(s)
- $68.04
- Risk / Reward Ratio
- 0.058
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.
QRFT covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on QRFT. 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% | -$6,803.00 |
| $15.18 | -77.9% | -$5,285.66 |
| $30.36 | -55.8% | -$3,768.33 |
| $45.53 | -33.7% | -$2,250.99 |
| $60.70 | -11.5% | -$733.65 |
| $75.88 | +10.6% | +$396.00 |
| $91.05 | +32.7% | +$396.00 |
| $106.22 | +54.8% | +$396.00 |
| $121.40 | +76.9% | +$396.00 |
| $136.57 | +99.0% | +$396.00 |
When traders use covered call on QRFT
Covered calls on QRFT are an income strategy run on existing QRFT etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
QRFT thesis for this covered call
The market-implied 1-standard-deviation range for QRFT extends from approximately $65.72 on the downside to $71.54 on the upside. A QRFT covered call collects premium on an existing long QRFT position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether QRFT will breach that level within the expiration window. Current QRFT IV rank near 0.58% 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 QRFT at 14.80%. As a Financial Services name, QRFT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to QRFT-specific events.
QRFT 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. QRFT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move QRFT alongside the broader basket even when QRFT-specific fundamentals are unchanged. Short-premium structures like a covered call on QRFT carry tail risk when realized volatility exceeds the implied move; review historical QRFT earnings reactions and macro stress periods before sizing. Always rebuild the position from current QRFT chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on QRFT?
- A covered call on QRFT is the covered call strategy applied to QRFT (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 QRFT etf trading near $68.63, the strikes shown on this page are snapped to the nearest listed QRFT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are QRFT 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 QRFT covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 14.80%), the computed maximum profit is $396.00 per contract and the computed maximum loss is -$6,803.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a QRFT covered call?
- The breakeven for the QRFT covered call priced on this page is roughly $68.04 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 QRFT market-implied 1-standard-deviation expected move is approximately 4.24%; 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 QRFT?
- Covered calls on QRFT are an income strategy run on existing QRFT 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 QRFT implied volatility affect this covered call?
- QRFT ATM IV is at 14.80% with IV rank near 0.58%, 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.