How are SGDJ 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 SGDJ covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 47.60%), the computed maximum profit is $551.00 per contract and the computed maximum loss is -$7,448.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SGDJ covered call?

The breakeven for the SGDJ covered call priced on this page is roughly $74.49 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 SGDJ market-implied 1-standard-deviation expected move is approximately 13.65%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SGDJ implied volatility affect this covered call?

SGDJ ATM IV is at 47.60% with IV rank near 46.60%, 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.

SGDJ Covered Call Strategy

SGDJ (Sprott Junior Gold Miners ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

Sprott Funds Trust - Sprott Junior Gold Miners ETF is an exchange traded fund launched and managed by Sprott Asset Management USA Inc. The fund is co-managed by ALPS Advisors, Inc. The fund invests in public equity markets of global developed region. It invests in stocks of companies operating across materials, metals and mining, gold sectors. It invests in growth and value stocks of companies across diversified market capitalization. It seeks to benchmark performance of its portfolio against the Solactive Junior Gold Miners Custom Factors Total Return Index,MSCI All Country World Index and the S&P 500 Total Return Index.

SGDJ (Sprott Junior Gold Miners ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $326.7M, a beta of 0.92 versus the broader market, a 52-week range of 47.39-115.775, average daily share volume of 71K, a public-listing history dating back to 2015. These structural characteristics shape how SGDJ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.92 places SGDJ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SGDJ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on SGDJ?

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 SGDJ snapshot

As of June 30, 2026, spot at $75.94, ATM IV 47.60%, IV rank 46.60%, expected move 13.65%. The covered call on SGDJ 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 17-day expiry.

Why this covered call structure on SGDJ specifically: SGDJ IV at 47.60% is mid-range versus its 1-year history, so the credit collected on a SGDJ covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 13.65% (roughly $10.36 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 SGDJ expiries trade a higher absolute premium for lower per-day decay. Position sizing on SGDJ should anchor to the underlying notional of $75.94 per share and to the trader's directional view on SGDJ etf.

SGDJ covered call setup

The SGDJ 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 SGDJ near $75.94, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SGDJ 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 SGDJ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$75.94	long
Sell 1	Call	$80.00	$1.45

SGDJ covered call risk and reward

Net Premium / Debit: -$7,449.00
Max Profit (per contract): $551.00
Max Loss (per contract): -$7,448.00
Breakeven(s): $74.49
Risk / Reward Ratio: 0.074

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.

SGDJ covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on SGDJ. 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%	-$7,448.00
$16.80	-77.9%	-$5,769.04
$33.59	-55.8%	-$4,090.07
$50.38	-33.7%	-$2,411.11
$67.17	-11.6%	-$732.14
$83.96	+10.6%	+$551.00
$100.75	+32.7%	+$551.00
$117.54	+54.8%	+$551.00
$134.33	+76.9%	+$551.00
$151.12	+99.0%	+$551.00

When traders use covered call on SGDJ

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

SGDJ thesis for this covered call

The market-implied 1-standard-deviation range for SGDJ extends from approximately $65.58 on the downside to $86.30 on the upside. A SGDJ covered call collects premium on an existing long SGDJ position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether SGDJ will breach that level within the expiration window. Current SGDJ IV rank near 46.60% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on SGDJ should anchor more to the directional view and the expected-move geometry. As a Financial Services name, SGDJ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SGDJ-specific events.

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

Frequently asked questions

What is a covered call on SGDJ?: A covered call on SGDJ is the covered call strategy applied to SGDJ (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 SGDJ etf trading near $75.94, the strikes shown on this page are snapped to the nearest listed SGDJ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SGDJ 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 SGDJ covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 47.60%), the computed maximum profit is $551.00 per contract and the computed maximum loss is -$7,448.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SGDJ covered call?: The breakeven for the SGDJ covered call priced on this page is roughly $74.49 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 SGDJ market-implied 1-standard-deviation expected move is approximately 13.65%; 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 SGDJ?: Covered calls on SGDJ are an income strategy run on existing SGDJ 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 SGDJ implied volatility affect this covered call?: SGDJ ATM IV is at 47.60% with IV rank near 46.60%, 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.