How are SJB 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 SJB covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 7.00%), the computed maximum profit is $87.00 per contract and the computed maximum loss is -$1,512.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SJB covered call?

The breakeven for the SJB covered call priced on this page is roughly $15.13 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 SJB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 2.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SJB implied volatility affect this covered call?

SJB ATM IV is at 7.00% with IV rank near 1.33%, 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.

SJB Covered Call Strategy

SJB (ProShares - Short High Yield), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.

The ProShares Short High Yield fund (SJB) is designed to deliver daily investment returns that are the exact opposite of the Markit iBoxx $ Liquid High Yield Index's daily performance, before any deductions for management fees and other operational expenses.

SJB (ProShares - Short High Yield) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $47.8M, a beta of -0.68 versus the broader market, a 52-week range of 15.05-15.71, average daily share volume of 197K, a public-listing history dating back to 2011. These structural characteristics shape how SJB etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.68 indicates SJB has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SJB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on SJB?

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.

SJB snapshot

As of August 14, 2026, spot at $15.14, ATM IV 7.00%, IV rank 1.33%, expected move 2.01%. The covered call on SJB 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 35-day expiry.

Why this covered call structure on SJB specifically: SJB IV at 7.00% is on the cheap side of its 1-year range, which means a premium-selling SJB covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 2.01% (roughly $0.30 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SJB expiries trade a higher absolute premium for lower per-day decay. Position sizing on SJB should anchor to the underlying notional of $15.14 per share and to the trader's directional view on SJB etf.

SJB covered call setup

The SJB 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 SJB at $15.14 on that close, the first option leg uses a $16.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SJB chain at a 35-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 SJB shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$15.14	long
Sell 1	Call	$16.00	$0.01

SJB covered call risk and reward

Net Premium / Debit: -$1,513.00
Max Profit (per contract): $87.00
Max Loss (per contract): -$1,512.00
Breakeven(s): $15.13
Risk / Reward Ratio: 0.058

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.

SJB covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on SJB. 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	-99.9%	-$1,512.00
$3.36	-77.8%	-$1,177.36
$6.70	-55.7%	-$842.71
$10.05	-33.6%	-$508.07
$13.40	-11.5%	-$173.43
$16.74	+10.6%	+$87.00
$20.09	+32.7%	+$87.00
$23.44	+54.8%	+$87.00
$26.78	+76.9%	+$87.00
$30.13	+99.0%	+$87.00

When traders use covered call on SJB

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

SJB thesis for this covered call

The market-implied 1-standard-deviation range for SJB extends from approximately $14.84 on the downside to $15.44 on the upside. A SJB covered call collects premium on an existing long SJB position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether SJB will breach that level within the expiration window. Current SJB IV rank near 1.33% 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 SJB at 7.00%. As a Financial Services name, SJB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SJB-specific events.

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

Frequently asked questions

What is a covered call on SJB?: A covered call on SJB is the covered call strategy applied to SJB (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 SJB etf at $15.14 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SJB chain strike and the premiums come straight from that session's bid/ask midpoint.
How are SJB 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 SJB covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 7.00%), the computed maximum profit is $87.00 per contract and the computed maximum loss is -$1,512.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SJB covered call?: The breakeven for the SJB covered call priced on this page is roughly $15.13 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 SJB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 2.01%; 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 SJB?: Covered calls on SJB are an income strategy run on existing SJB 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 SJB implied volatility affect this covered call?: SJB ATM IV is at 7.00% with IV rank near 1.33%, 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.