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 September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 6.60%), the computed maximum profit is $452.00 per contract and the computed maximum loss is -$8,747.00 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 $87.48 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 REGL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 1.89%; 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 6.60% with IV rank near 0.00%, 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 $1.61B, a beta of 0.62 versus the broader market, a 52-week range of 80.52-95.97, average daily share volume of 57K, 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 0.62 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 September 29, 2026, spot at $87.53, ATM IV 6.60%, IV rank 0.00%, expected move 1.89%. The covered call on REGL 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 REGL specifically: REGL IV at 6.60% 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 1.89% (roughly $1.66 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 REGL expiries trade a higher absolute premium for lower per-day decay. Position sizing on REGL should anchor to the underlying notional of $87.53 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 September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With REGL at $87.53 on that close, 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 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 REGL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$87.53	long
Sell 1	Call	$92.00	$0.05

REGL covered call risk and reward

Net Premium / Debit: -$8,748.00
Max Profit (per contract): $452.00
Max Loss (per contract): -$8,747.00
Breakeven(s): $87.48
Risk / Reward Ratio: 0.052

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%	-$8,747.00
$19.36	-77.9%	-$6,811.77
$38.71	-55.8%	-$4,876.55
$58.07	-33.7%	-$2,941.32
$77.42	-11.6%	-$1,006.10
$96.77	+10.6%	+$452.00
$116.12	+32.7%	+$452.00
$135.48	+54.8%	+$452.00
$154.83	+76.9%	+$452.00
$174.18	+99.0%	+$452.00

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 $85.87 on the downside to $89.19 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 0.00% 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 6.60%. 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 $87.53 on the September 29, 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 September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 6.60%), the computed maximum profit is $452.00 per contract and the computed maximum loss is -$8,747.00 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 $87.48 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 REGL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 1.89%; 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 6.60% with IV rank near 0.00%, 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.