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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 18.30%), the computed maximum profit is $599.00 per contract and the computed maximum loss is -$9,500.00 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 $95.01 at expiration, derived from the August 14, 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 REGL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.25%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current REGL implied volatility affect this covered call?

REGL ATM IV is at 18.30% with IV rank near 25.61%, 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.

REGL Covered Call Strategy

REGL (ProShares - S&P MidCap 400 Dividend Aristocrats ETF), in the Financial Services sector, (Asset Management - Income industry), listed on CBOE.

Under ordinary market conditions, this fund is structured to commit a significant majority—at least 80% of its overall investments—to the specific stocks that make up its reference index. This underlying index is composed of a minimum of 40 individual companies, each assigned an identical weighting within the portfolio. Furthermore, to promote diversification, no single industry sector is permitted to constitute more than 30% of the index's total value.

REGL (ProShares - S&P MidCap 400 Dividend Aristocrats ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $1.77B, a beta of 0.65 versus the broader market, a 52-week range of 80.52-95.97, average daily share volume of 63K, 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 0.65 indicates REGL has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. 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.

REGL snapshot

As of August 14, 2026, spot at $95.77, ATM IV 18.30%, IV rank 25.61%, expected move 5.25%. The covered call on REGL below is built from the August 14, 2026 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 REGL specifically: REGL IV at 18.30% 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 5.25% (roughly $5.02 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 REGL expiries trade a higher absolute premium for lower per-day decay. Position sizing on REGL should anchor to the underlying notional of $95.77 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 August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With REGL at $95.77 on that close, the first option leg uses a $101.00 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 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 REGL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$95.77	long
Sell 1	Call	$101.00	$0.76

REGL covered call risk and reward

Net Premium / Debit: -$9,501.00
Max Profit (per contract): $599.00
Max Loss (per contract): -$9,500.00
Breakeven(s): $95.01
Risk / Reward Ratio: 0.063

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.

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%	-$9,500.00
$21.18	-77.9%	-$7,382.58
$42.36	-55.8%	-$5,265.17
$63.53	-33.7%	-$3,147.75
$84.71	-11.6%	-$1,030.33
$105.88	+10.6%	+$599.00
$127.06	+32.7%	+$599.00
$148.23	+54.8%	+$599.00
$169.40	+76.9%	+$599.00
$190.58	+99.0%	+$599.00

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 $90.75 on the downside to $100.79 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 25.61% 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 18.30%. 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 at $95.77 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed REGL chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 18.30%), the computed maximum profit is $599.00 per contract and the computed maximum loss is -$9,500.00 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 $95.01 at expiration, derived from the August 14, 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 REGL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.25%; 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 18.30% with IV rank near 25.61%, 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.