How are SOFX 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 SOFX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 100.30%), the computed maximum profit is $141.00 per contract and the computed maximum loss is -$758.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SOFX covered call?

The breakeven for the SOFX covered call priced on this page is roughly $7.59 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 SOFX market-implied 1-standard-deviation expected move is approximately 28.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SOFX implied volatility affect this covered call?

SOFX ATM IV is at 100.30% with IV rank near 18.54%, 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.

SOFX Covered Call Strategy

SOFX (Daily Target 2X Long SOFI ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

SOFX uses swap agreements to make bullish bets on SoFi Technologies, Inc. (SOFI) share price. SOFI is an American personal finance and financial technology company that provides various financial services. The fund seeks to maintain daily leveraged exposure equivalent to 200% of the daily percentage change in SOFI's share price through daily rebalancing. As a leveraged product, it is designed for short-term tactical use, not as a long-term investment vehicle. Returns may deviate from the expected 2x if held longer than a single day due to factors like volatility and compounding effects. This strategy is high-risk and does not incorporate a defensive position.

SOFX (Daily Target 2X Long SOFI ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $18.8M, a beta of 4.23 versus the broader market, a 52-week range of 7.92-55.479, average daily share volume of 944K, a public-listing history dating back to 2025. These structural characteristics shape how SOFX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 4.23 indicates SOFX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. SOFX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on SOFX?

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 SOFX snapshot

As of May 15, 2026, spot at $8.34, ATM IV 100.30%, IV rank 18.54%, expected move 28.76%. The covered call on SOFX 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 34-day expiry.

Why this covered call structure on SOFX specifically: SOFX IV at 100.30% is on the cheap side of its 1-year range, which means a premium-selling SOFX covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 28.76% (roughly $2.40 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SOFX expiries trade a higher absolute premium for lower per-day decay. Position sizing on SOFX should anchor to the underlying notional of $8.34 per share and to the trader's directional view on SOFX etf.

SOFX covered call setup

The SOFX 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 SOFX near $8.34, the first option leg uses a $9.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SOFX chain at a 34-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 SOFX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$8.34	long
Sell 1	Call	$9.00	$0.75

SOFX covered call risk and reward

Net Premium / Debit: -$759.00
Max Profit (per contract): $141.00
Max Loss (per contract): -$758.00
Breakeven(s): $7.59
Risk / Reward Ratio: 0.186

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.

SOFX covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on SOFX. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$758.00
$1.85	-77.8%	-$573.71
$3.70	-55.7%	-$389.42
$5.54	-33.6%	-$205.13
$7.38	-11.5%	-$20.83
$9.22	+10.6%	+$141.00
$11.07	+32.7%	+$141.00
$12.91	+54.8%	+$141.00
$14.75	+76.9%	+$141.00
$16.60	+99.0%	+$141.00

When traders use covered call on SOFX

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

SOFX thesis for this covered call

The market-implied 1-standard-deviation range for SOFX extends from approximately $5.94 on the downside to $10.74 on the upside. A SOFX covered call collects premium on an existing long SOFX position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether SOFX will breach that level within the expiration window. Current SOFX IV rank near 18.54% 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 SOFX at 100.30%. As a Financial Services name, SOFX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SOFX-specific events.

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

Frequently asked questions

What is a covered call on SOFX?: A covered call on SOFX is the covered call strategy applied to SOFX (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 SOFX etf trading near $8.34, the strikes shown on this page are snapped to the nearest listed SOFX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SOFX 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 SOFX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 100.30%), the computed maximum profit is $141.00 per contract and the computed maximum loss is -$758.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SOFX covered call?: The breakeven for the SOFX covered call priced on this page is roughly $7.59 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 SOFX market-implied 1-standard-deviation expected move is approximately 28.76%; 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 SOFX?: Covered calls on SOFX are an income strategy run on existing SOFX 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 SOFX implied volatility affect this covered call?: SOFX ATM IV is at 100.30% with IV rank near 18.54%, 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.