TDV Covered Call Strategy
TDV (ProShares - S&P Technology Dividend Aristocrats ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The index, constructed and maintained by S&P Dow Jones Indices LLC, targets companies from the U.S. technology sector and select U.S. technology-related companies from the communication services and consumer discretionary sectors. Under normal circumstances, the fund will invest at least 80% of its total assets in component securities of the index. It is non-diversified.
TDV (ProShares - S&P Technology Dividend Aristocrats ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $266.1M, a beta of 1.17 versus the broader market, a 52-week range of 76.13-99.43, average daily share volume of 8K, a public-listing history dating back to 2019. These structural characteristics shape how TDV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.17 places TDV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TDV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on TDV?
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 TDV snapshot
As of May 15, 2026, spot at $97.55, ATM IV 24.70%, IV rank 30.06%, expected move 7.08%. The covered call on TDV 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 TDV specifically: TDV IV at 24.70% is mid-range versus its 1-year history, so the credit collected on a TDV covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 7.08% (roughly $6.91 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 TDV expiries trade a higher absolute premium for lower per-day decay. Position sizing on TDV should anchor to the underlying notional of $97.55 per share and to the trader's directional view on TDV etf.
TDV covered call setup
The TDV 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 TDV near $97.55, the first option leg uses a $100.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TDV 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 TDV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $97.55 | long |
| Sell 1 | Call | $100.00 | $2.00 |
TDV covered call risk and reward
- Net Premium / Debit
- -$9,555.00
- Max Profit (per contract)
- $445.00
- Max Loss (per contract)
- -$9,554.00
- Breakeven(s)
- $95.55
- Risk / Reward Ratio
- 0.047
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.
TDV covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on TDV. 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 | -100.0% | -$9,554.00 |
| $21.58 | -77.9% | -$7,397.23 |
| $43.15 | -55.8% | -$5,240.45 |
| $64.71 | -33.7% | -$3,083.68 |
| $86.28 | -11.6% | -$926.90 |
| $107.85 | +10.6% | +$445.00 |
| $129.42 | +32.7% | +$445.00 |
| $150.98 | +54.8% | +$445.00 |
| $172.55 | +76.9% | +$445.00 |
| $194.12 | +99.0% | +$445.00 |
When traders use covered call on TDV
Covered calls on TDV are an income strategy run on existing TDV etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
TDV thesis for this covered call
The market-implied 1-standard-deviation range for TDV extends from approximately $90.64 on the downside to $104.46 on the upside. A TDV covered call collects premium on an existing long TDV position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether TDV will breach that level within the expiration window. Current TDV IV rank near 30.06% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on TDV should anchor more to the directional view and the expected-move geometry. As a Financial Services name, TDV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TDV-specific events.
TDV 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. TDV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TDV alongside the broader basket even when TDV-specific fundamentals are unchanged. Short-premium structures like a covered call on TDV carry tail risk when realized volatility exceeds the implied move; review historical TDV earnings reactions and macro stress periods before sizing. Always rebuild the position from current TDV chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on TDV?
- A covered call on TDV is the covered call strategy applied to TDV (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 TDV etf trading near $97.55, the strikes shown on this page are snapped to the nearest listed TDV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TDV 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 TDV covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 24.70%), the computed maximum profit is $445.00 per contract and the computed maximum loss is -$9,554.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TDV covered call?
- The breakeven for the TDV covered call priced on this page is roughly $95.55 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 TDV market-implied 1-standard-deviation expected move is approximately 7.08%; 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 TDV?
- Covered calls on TDV are an income strategy run on existing TDV 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 TDV implied volatility affect this covered call?
- TDV ATM IV is at 24.70% with IV rank near 30.06%, 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.