How are RAML 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 RAML covered call priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 113.00%), the computed maximum profit is $152.00 per contract and the computed maximum loss is -$1,347.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RAML covered call?

The breakeven for the RAML covered call priced on this page is roughly $13.48 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 RAML market-implied 1-standard-deviation expected move in the same options snapshot is approximately 32.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RAML implied volatility affect this covered call?

Current RAML ATM IV is 113.00%; IV rank context is unavailable in the current snapshot.

RAML Covered Call Strategy

RAML (Themes ETF Trust - Leverage Shares 2X Long Memory Daily ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

RAML is designed to make bullish bets on the stock price of Roundhill Memory ETF (CBOE: DRAM) through swap agreements. The objective is to obtain daily leveraged exposure equivalent to 200% of the fund's net assets. To maintain this exposure, daily rebalancing is performed to make adjustments in response to DRAM's daily price movements. Depending on market conditions and operational constraints, the fund may also utilize a synthetic forward options strategy. As a geared product, the fund is intended as a short-term tactical tool rather than a long-term investment vehicle. As a result, returns may deviate from the expected 2x multiplier if held for longer than a single day due to compounding.

RAML (Themes ETF Trust - Leverage Shares 2X Long Memory Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $745,713, a beta of 0.00 versus the broader market, a 52-week range of 8.84-16, average daily share volume of 13K, a public-listing history dating back to 2026. These structural characteristics shape how RAML etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.00 indicates RAML has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a covered call on RAML?

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.

RAML snapshot

As of September 29, 2026, spot at $14.73, ATM IV 113.00%, expected move 32.40%. The covered call on RAML 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 17-day expiry.

Why this covered call structure on RAML specifically: IV rank is unavailable in the current snapshot, so regime-based timing for RAML is inferred from ATM IV at 113.00% alone, with a market-implied 1-standard-deviation move of approximately 32.40% (roughly $4.77 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 RAML expiries trade a higher absolute premium for lower per-day decay. Position sizing on RAML should anchor to the underlying notional of $14.73 per share and to the trader's directional view on RAML etf.

RAML covered call setup

The RAML 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 RAML at $14.73 on that close, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RAML 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 RAML shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$14.73	long
Sell 1	Call	$15.00	$1.25

RAML covered call risk and reward

Net Premium / Debit: -$1,348.00
Max Profit (per contract): $152.00
Max Loss (per contract): -$1,347.00
Breakeven(s): $13.48
Risk / Reward Ratio: 0.113

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.

RAML covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on RAML. 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	-99.9%	-$1,347.00
$3.27	-77.8%	-$1,021.42
$6.52	-55.7%	-$695.84
$9.78	-33.6%	-$370.27
$13.03	-11.5%	-$44.69
$16.29	+10.6%	+$152.00
$19.54	+32.7%	+$152.00
$22.80	+54.8%	+$152.00
$26.06	+76.9%	+$152.00
$29.31	+99.0%	+$152.00

When traders use covered call on RAML

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

RAML thesis for this covered call

The market-implied 1-standard-deviation range for RAML extends from approximately $9.96 on the downside to $19.50 on the upside. A RAML covered call collects premium on an existing long RAML position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether RAML will breach that level within the expiration window. As a Financial Services name, RAML options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RAML-specific events.

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

Frequently asked questions

What is a covered call on RAML?: A covered call on RAML is the covered call strategy applied to RAML (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 RAML etf at $14.73 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed RAML chain strike and the premiums come straight from that session's bid/ask midpoint.
How are RAML 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 RAML covered call priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 113.00%), the computed maximum profit is $152.00 per contract and the computed maximum loss is -$1,347.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RAML covered call?: The breakeven for the RAML covered call priced on this page is roughly $13.48 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 RAML market-implied 1-standard-deviation expected move in the same options snapshot is approximately 32.40%; 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 RAML?: Covered calls on RAML are an income strategy run on existing RAML 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 RAML implied volatility affect this covered call?: Current RAML ATM IV is 113.00%; IV rank context is unavailable in the current snapshot.