How are SGDM 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 SGDM covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 46.30%), the computed maximum profit is $451.50 per contract and the computed maximum loss is -$6,047.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SGDM covered call?

The breakeven for the SGDM covered call priced on this page is roughly $60.49 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 SGDM market-implied 1-standard-deviation expected move is approximately 13.27%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SGDM implied volatility affect this covered call?

SGDM ATM IV is at 46.30% with IV rank near 41.16%, 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.

SGDM Covered Call Strategy

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

The Sprott Gold Miners ETF (SGDM) endeavors to replicate the investment performance of its underlying benchmark index. This index specifically targets gold-producing companies situated in the United States and Canada, provided their common stock or American Depositary Receipts (ADRs) are traded on the Toronto Stock Exchange, the New York Stock Exchange, or NASDAQ. Typically, the fund commits a substantial portion—at least 90% of its net assets—to the very securities that compose this index. It is important to note that this fund maintains a non-diversified status.

SGDM (Sprott Gold Miners ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $673.7M, a beta of 0.54 versus the broader market, a 52-week range of 43.511-96.5, average daily share volume of 63K, a public-listing history dating back to 2014. These structural characteristics shape how SGDM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.54 indicates SGDM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SGDM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on SGDM?

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 SGDM snapshot

As of June 29, 2026, spot at $62.16, ATM IV 46.30%, IV rank 41.16%, expected move 13.27%. The covered call on SGDM 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 18-day expiry.

Why this covered call structure on SGDM specifically: SGDM IV at 46.30% is mid-range versus its 1-year history, so the credit collected on a SGDM covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 13.27% (roughly $8.25 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SGDM expiries trade a higher absolute premium for lower per-day decay. Position sizing on SGDM should anchor to the underlying notional of $62.16 per share and to the trader's directional view on SGDM etf.

SGDM covered call setup

The SGDM 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 SGDM near $62.16, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SGDM chain at a 18-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 SGDM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$62.16	long
Sell 1	Call	$65.00	$1.68

SGDM covered call risk and reward

Net Premium / Debit: -$6,048.50
Max Profit (per contract): $451.50
Max Loss (per contract): -$6,047.50
Breakeven(s): $60.49
Risk / Reward Ratio: 0.075

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.

SGDM covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on SGDM. 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%	-$6,047.50
$13.75	-77.9%	-$4,673.22
$27.50	-55.8%	-$3,298.94
$41.24	-33.7%	-$1,924.66
$54.98	-11.5%	-$550.37
$68.72	+10.6%	+$451.50
$82.47	+32.7%	+$451.50
$96.21	+54.8%	+$451.50
$109.95	+76.9%	+$451.50
$123.70	+99.0%	+$451.50

When traders use covered call on SGDM

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

SGDM thesis for this covered call

The market-implied 1-standard-deviation range for SGDM extends from approximately $53.91 on the downside to $70.41 on the upside. A SGDM covered call collects premium on an existing long SGDM position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether SGDM will breach that level within the expiration window. Current SGDM IV rank near 41.16% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on SGDM should anchor more to the directional view and the expected-move geometry. As a Financial Services name, SGDM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SGDM-specific events.

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

Frequently asked questions

What is a covered call on SGDM?: A covered call on SGDM is the covered call strategy applied to SGDM (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 SGDM etf trading near $62.16, the strikes shown on this page are snapped to the nearest listed SGDM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SGDM 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 SGDM covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 46.30%), the computed maximum profit is $451.50 per contract and the computed maximum loss is -$6,047.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SGDM covered call?: The breakeven for the SGDM covered call priced on this page is roughly $60.49 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 SGDM market-implied 1-standard-deviation expected move is approximately 13.27%; 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 SGDM?: Covered calls on SGDM are an income strategy run on existing SGDM 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 SGDM implied volatility affect this covered call?: SGDM ATM IV is at 46.30% with IV rank near 41.16%, 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.