How are SRTY 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 SRTY covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 51.10%), the computed maximum profit is $230.50 per contract and the computed maximum loss is -$1,968.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SRTY covered call?

The breakeven for the SRTY covered call priced on this page is roughly $19.70 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 SRTY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.65%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SRTY implied volatility affect this covered call?

SRTY ATM IV is at 51.10% with IV rank near 8.03%, 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.

SRTY Covered Call Strategy

SRTY (ProShares - UltraPro Short Russell2000), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.

The ProShares UltraPro Short Russell2000 is engineered to deliver daily investment returns, prior to any deductions for fees and expenses, that precisely replicate three times the inverse (-3x) daily performance of the Russell 2000 Index.

SRTY (ProShares - UltraPro Short Russell2000) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $63.0M, a beta of -3.59 versus the broader market, a 52-week range of 20.475-61, average daily share volume of 2.5M, a public-listing history dating back to 2010. These structural characteristics shape how SRTY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -3.59 indicates SRTY has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SRTY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on SRTY?

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.

SRTY snapshot

As of August 14, 2026, spot at $20.52, ATM IV 51.10%, IV rank 8.03%, expected move 14.65%. The covered call on SRTY 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 SRTY specifically: SRTY IV at 51.10% is on the cheap side of its 1-year range, which means a premium-selling SRTY covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 14.65% (roughly $3.01 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 SRTY expiries trade a higher absolute premium for lower per-day decay. Position sizing on SRTY should anchor to the underlying notional of $20.52 per share and to the trader's directional view on SRTY etf.

SRTY covered call setup

The SRTY 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 SRTY at $20.52 on that close, the first option leg uses a $22.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SRTY 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 SRTY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$20.52	long
Sell 1	Call	$22.00	$0.83

SRTY covered call risk and reward

Net Premium / Debit: -$1,969.50
Max Profit (per contract): $230.50
Max Loss (per contract): -$1,968.50
Breakeven(s): $19.70
Risk / Reward Ratio: 0.117

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.

SRTY covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on SRTY. 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%	-$1,968.50
$4.55	-77.8%	-$1,514.90
$9.08	-55.7%	-$1,061.30
$13.62	-33.6%	-$607.71
$18.15	-11.5%	-$154.11
$22.69	+10.6%	+$230.50
$27.23	+32.7%	+$230.50
$31.76	+54.8%	+$230.50
$36.30	+76.9%	+$230.50
$40.83	+99.0%	+$230.50

When traders use covered call on SRTY

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

SRTY thesis for this covered call

The market-implied 1-standard-deviation range for SRTY extends from approximately $17.51 on the downside to $23.53 on the upside. A SRTY covered call collects premium on an existing long SRTY position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether SRTY will breach that level within the expiration window. Current SRTY IV rank near 8.03% 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 SRTY at 51.10%. As a Financial Services name, SRTY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SRTY-specific events.

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

Frequently asked questions

What is a covered call on SRTY?: A covered call on SRTY is the covered call strategy applied to SRTY (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 SRTY etf at $20.52 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SRTY chain strike and the premiums come straight from that session's bid/ask midpoint.
How are SRTY 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 SRTY covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 51.10%), the computed maximum profit is $230.50 per contract and the computed maximum loss is -$1,968.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SRTY covered call?: The breakeven for the SRTY covered call priced on this page is roughly $19.70 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 SRTY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.65%; 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 SRTY?: Covered calls on SRTY are an income strategy run on existing SRTY 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 SRTY implied volatility affect this covered call?: SRTY ATM IV is at 51.10% with IV rank near 8.03%, 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.