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 21.70%), the computed maximum profit is $697.00 per contract and the computed maximum loss is -$8,902.00 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 $89.03 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 6.22%; 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 21.70% with IV rank near 42.97%, 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.

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 $1.68B, a beta of 0.70 versus the broader market, a 52-week range of 80.52-93.738, average daily share volume of 53K, 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 0.70 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 June 29, 2026, spot at $91.63, ATM IV 21.70%, IV rank 42.97%, expected move 6.22%. 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 109-day expiry.

Why this covered call structure on REGL specifically: REGL IV at 21.70% is mid-range versus its 1-year history, so the credit collected on a REGL covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 6.22% (roughly $5.70 on the underlying). The 109-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 $91.63 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 $91.63, the first option leg uses a $96.00 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 109-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	$91.63	long
Sell 1	Call	$96.00	$2.60

REGL covered call risk and reward

Net Premium / Debit: -$8,903.00
Max Profit (per contract): $697.00
Max Loss (per contract): -$8,902.00
Breakeven(s): $89.03
Risk / Reward Ratio: 0.078

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%	-$8,902.00
$20.27	-77.9%	-$6,876.12
$40.53	-55.8%	-$4,850.24
$60.79	-33.7%	-$2,824.36
$81.05	-11.6%	-$798.48
$101.30	+10.6%	+$697.00
$121.56	+32.7%	+$697.00
$141.82	+54.8%	+$697.00
$162.08	+76.9%	+$697.00
$182.34	+99.0%	+$697.00

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 $85.93 on the downside to $97.33 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 42.97% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on REGL should anchor more to the directional view and the expected-move geometry. 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 $91.63, 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 21.70%), the computed maximum profit is $697.00 per contract and the computed maximum loss is -$8,902.00 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 $89.03 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 6.22%; 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 21.70% with IV rank near 42.97%, 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.