How are SOYB 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 SOYB covered call priced from the September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 19.80%), the computed maximum profit is $155.00 per contract and the computed maximum loss is -$2,744.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SOYB covered call?

The breakeven for the SOYB covered call priced on this page is roughly $27.45 at expiration, derived from the September 30, 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 SOYB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SOYB implied volatility affect this covered call?

SOYB ATM IV is at 19.80% with IV rank near 3.88%, 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.

SOYB Covered Call Strategy

SOYB (Teucrium Soybean Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The Teucrium Soybean Fund, identified by the ticker SOYB, provides a direct and accessible method for investors to gain exposure to the market prices of soybean futures contracts through their existing brokerage accounts. Given that soybean price fluctuations have historically demonstrated a low correlation with the performance of U.S. stock markets, SOYB presents a potentially appealing tool for strengthening portfolio diversification.

SOYB (Teucrium Soybean Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $52.7M, a beta of 0.44 versus the broader market, a 52-week range of 21.06-28.19, average daily share volume of 89K, a public-listing history dating back to 2011. These structural characteristics shape how SOYB etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.44 indicates SOYB has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a covered call on SOYB?

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.

SOYB snapshot

As of September 30, 2026, spot at $27.52, ATM IV 19.80%, IV rank 3.88%, expected move 5.68%. The covered call on SOYB below is built from the September 30, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 16-day expiry.

Why this covered call structure on SOYB specifically: SOYB IV at 19.80% is on the cheap side of its 1-year range, which means a premium-selling SOYB covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 5.68% (roughly $1.56 on the underlying). The 16-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SOYB expiries trade a higher absolute premium for lower per-day decay. Position sizing on SOYB should anchor to the underlying notional of $27.52 per share and to the trader's directional view on SOYB etf.

SOYB covered call setup

The SOYB covered call below is built from the September 30, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With SOYB at $27.52 on that close, the first option leg uses a $29.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SOYB chain at a 16-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 SOYB shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$27.52	long
Sell 1	Call	$29.00	$0.07

SOYB covered call risk and reward

Net Premium / Debit: -$2,745.00
Max Profit (per contract): $155.00
Max Loss (per contract): -$2,744.00
Breakeven(s): $27.45
Risk / Reward Ratio: 0.056

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.

SOYB covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on SOYB. 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%	-$2,744.00
$6.09	-77.9%	-$2,135.63
$12.18	-55.8%	-$1,527.26
$18.26	-33.6%	-$918.88
$24.34	-11.5%	-$310.51
$30.43	+10.6%	+$155.00
$36.51	+32.7%	+$155.00
$42.60	+54.8%	+$155.00
$48.68	+76.9%	+$155.00
$54.76	+99.0%	+$155.00

When traders use covered call on SOYB

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

SOYB thesis for this covered call

The market-implied 1-standard-deviation range for SOYB extends from approximately $25.96 on the downside to $29.08 on the upside. A SOYB covered call collects premium on an existing long SOYB position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether SOYB will breach that level within the expiration window. Current SOYB IV rank near 3.88% 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 SOYB at 19.80%. As a Financial Services name, SOYB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SOYB-specific events.

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

Frequently asked questions

What is a covered call on SOYB?: A covered call on SOYB is the covered call strategy applied to SOYB (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 SOYB etf at $27.52 on the September 30, 2026 close, the strikes shown on this page are snapped to the nearest listed SOYB chain strike and the premiums come straight from that session's bid/ask midpoint.
How are SOYB 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 SOYB covered call priced from the September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 19.80%), the computed maximum profit is $155.00 per contract and the computed maximum loss is -$2,744.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SOYB covered call?: The breakeven for the SOYB covered call priced on this page is roughly $27.45 at expiration, derived from the September 30, 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 SOYB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.68%; 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 SOYB?: Covered calls on SOYB are an income strategy run on existing SOYB 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 SOYB implied volatility affect this covered call?: SOYB ATM IV is at 19.80% with IV rank near 3.88%, 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.