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 29.10%), the computed maximum profit is $588.00 per contract and the computed maximum loss is -$10,111.00 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 $101.12 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 8.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TDV implied volatility affect this covered call?

TDV ATM IV is at 29.10% with IV rank near 62.90%, 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.

TDV Covered Call Strategy

TDV (ProShares - S&P Technology Dividend Aristocrats ETF), in the Financial Services sector, (Asset Management - Income industry), listed on CBOE.

This ProShares fund is designed to mirror an underlying index, which is meticulously developed and overseen by S&P Dow Jones Indices LLC. The index primarily comprises companies from the U.S. technology sector, with a focused selection of technology-oriented businesses also drawn from the communication services and consumer discretionary sectors. Typically, the fund commits a minimum of 80% of its total capital to the securities that make up this index. Investors should be aware that it operates as a non-diversified fund.

TDV (ProShares - S&P Technology Dividend Aristocrats ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $289.6M, a beta of 1.21 versus the broader market, a 52-week range of 81.52-106.7, average daily share volume of 7K, 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 1.21 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 June 29, 2026, spot at $101.66, ATM IV 29.10%, IV rank 62.90%, expected move 8.34%. 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 18-day expiry.

Why this covered call structure on TDV specifically: TDV IV at 29.10% 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 8.34% (roughly $8.48 on the underlying). The 18-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 $101.66 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 $101.66, the first option leg uses a $107.00 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 18-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	$101.66	long
Sell 1	Call	$107.00	$0.54

TDV covered call risk and reward

Net Premium / Debit: -$10,112.00
Max Profit (per contract): $588.00
Max Loss (per contract): -$10,111.00
Breakeven(s): $101.12
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.

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.

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%	-$10,111.00
$22.49	-77.9%	-$7,863.35
$44.96	-55.8%	-$5,615.70
$67.44	-33.7%	-$3,368.06
$89.92	-11.6%	-$1,120.41
$112.39	+10.6%	+$588.00
$134.87	+32.7%	+$588.00
$157.35	+54.8%	+$588.00
$179.82	+76.9%	+$588.00
$202.30	+99.0%	+$588.00

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 $93.18 on the downside to $110.14 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 62.90% 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 $101.66, 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 29.10%), the computed maximum profit is $588.00 per contract and the computed maximum loss is -$10,111.00 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 $101.12 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 8.34%; 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 29.10% with IV rank near 62.90%, 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.