REGL Covered Call Strategy
REGL (ProShares - S&P MidCap 400 Dividend Aristocrats ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
Under normal circumstances, the fund will invest at least 80% of its total assets in component securities of the index. The index contains a minimum of 40 stocks which are equally weighted. No single sector is allowed to comprise more than 30% of the index weight.
REGL (ProShares - S&P MidCap 400 Dividend Aristocrats ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.73B, a beta of 0.76 versus the broader market, a 52-week range of 79.56-93.738, average daily share volume of 51K, a public-listing history dating back to 2015. These structural characteristics shape how REGL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.76 places REGL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. REGL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on REGL?
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 REGL snapshot
As of May 15, 2026, spot at $87.15, ATM IV 17.40%, IV rank 29.06%, expected move 4.99%. The covered call on REGL 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 154-day expiry.
Why this covered call structure on REGL specifically: REGL IV at 17.40% is on the cheap side of its 1-year range, which means a premium-selling REGL covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 4.99% (roughly $4.35 on the underlying). The 154-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated REGL expiries trade a higher absolute premium for lower per-day decay. Position sizing on REGL should anchor to the underlying notional of $87.15 per share and to the trader's directional view on REGL etf.
REGL covered call setup
The REGL 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 REGL near $87.15, the first option leg uses a $92.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed REGL chain at a 154-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 REGL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $87.15 | long |
| Sell 1 | Call | $92.00 | $2.15 |
REGL covered call risk and reward
- Net Premium / Debit
- -$8,500.00
- Max Profit (per contract)
- $700.00
- Max Loss (per contract)
- -$8,499.00
- Breakeven(s)
- $85.00
- Risk / Reward Ratio
- 0.082
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.
REGL covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on REGL. 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% | -$8,499.00 |
| $19.28 | -77.9% | -$6,572.18 |
| $38.55 | -55.8% | -$4,645.35 |
| $57.81 | -33.7% | -$2,718.53 |
| $77.08 | -11.6% | -$791.70 |
| $96.35 | +10.6% | +$700.00 |
| $115.62 | +32.7% | +$700.00 |
| $134.89 | +54.8% | +$700.00 |
| $154.16 | +76.9% | +$700.00 |
| $173.42 | +99.0% | +$700.00 |
When traders use covered call on REGL
Covered calls on REGL are an income strategy run on existing REGL etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
REGL thesis for this covered call
The market-implied 1-standard-deviation range for REGL extends from approximately $82.80 on the downside to $91.50 on the upside. A REGL covered call collects premium on an existing long REGL position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether REGL will breach that level within the expiration window. Current REGL IV rank near 29.06% 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 REGL at 17.40%. As a Financial Services name, REGL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to REGL-specific events.
REGL 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. REGL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move REGL alongside the broader basket even when REGL-specific fundamentals are unchanged. Short-premium structures like a covered call on REGL carry tail risk when realized volatility exceeds the implied move; review historical REGL earnings reactions and macro stress periods before sizing. Always rebuild the position from current REGL chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on REGL?
- A covered call on REGL is the covered call strategy applied to REGL (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 REGL etf trading near $87.15, the strikes shown on this page are snapped to the nearest listed REGL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are REGL 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 REGL covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 17.40%), the computed maximum profit is $700.00 per contract and the computed maximum loss is -$8,499.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a REGL covered call?
- The breakeven for the REGL covered call priced on this page is roughly $85.00 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 REGL market-implied 1-standard-deviation expected move is approximately 4.99%; 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 REGL?
- Covered calls on REGL are an income strategy run on existing REGL 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 REGL implied volatility affect this covered call?
- REGL ATM IV is at 17.40% with IV rank near 29.06%, 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.