How are THNQ 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 THNQ covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 25.60%), the computed maximum profit is $481.50 per contract and the computed maximum loss is -$9,217.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a THNQ covered call?

The breakeven for the THNQ covered call priced on this page is roughly $92.19 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 THNQ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current THNQ implied volatility affect this covered call?

THNQ ATM IV is at 25.60% with IV rank near 2.39%, 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.

THNQ Covered Call Strategy

THNQ (ROBO Global Artificial Intelligence ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

This fund aims to mirror the performance of its benchmark index by typically allocating a minimum of 80% of its total capital to the index's constituent securities or their corresponding depositary receipts. The underlying index itself focuses on publicly traded companies that generate a significant portion of their earnings from activities within the artificial intelligence sector. It's important to note that this fund operates with a concentrated investment strategy rather than a diversified one.

THNQ (ROBO Global Artificial Intelligence ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $324.9M, a beta of 1.86 versus the broader market, a 52-week range of 54.839-93.59, average daily share volume of 27K, a public-listing history dating back to 2020. These structural characteristics shape how THNQ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.86 indicates THNQ has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. THNQ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on THNQ?

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.

THNQ snapshot

As of August 14, 2026, spot at $93.86, ATM IV 25.60%, IV rank 2.39%, expected move 7.34%. The covered call on THNQ 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 THNQ specifically: THNQ IV at 25.60% is on the cheap side of its 1-year range, which means a premium-selling THNQ covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.34% (roughly $6.89 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 THNQ expiries trade a higher absolute premium for lower per-day decay. Position sizing on THNQ should anchor to the underlying notional of $93.86 per share and to the trader's directional view on THNQ etf.

THNQ covered call setup

The THNQ 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 THNQ at $93.86 on that close, the first option leg uses a $97.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed THNQ 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 THNQ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$93.86	long
Sell 1	Call	$97.00	$1.68

THNQ covered call risk and reward

Net Premium / Debit: -$9,218.50
Max Profit (per contract): $481.50
Max Loss (per contract): -$9,217.50
Breakeven(s): $92.19
Risk / Reward Ratio: 0.052

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.

THNQ covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on THNQ. 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%	-$9,217.50
$20.76	-77.9%	-$7,142.31
$41.51	-55.8%	-$5,067.13
$62.27	-33.7%	-$2,991.94
$83.02	-11.6%	-$916.76
$103.77	+10.6%	+$481.50
$124.52	+32.7%	+$481.50
$145.27	+54.8%	+$481.50
$166.02	+76.9%	+$481.50
$186.78	+99.0%	+$481.50

When traders use covered call on THNQ

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

THNQ thesis for this covered call

The market-implied 1-standard-deviation range for THNQ extends from approximately $86.97 on the downside to $100.75 on the upside. A THNQ covered call collects premium on an existing long THNQ position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether THNQ will breach that level within the expiration window. Current THNQ IV rank near 2.39% 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 THNQ at 25.60%. As a Financial Services name, THNQ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to THNQ-specific events.

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

Frequently asked questions

What is a covered call on THNQ?: A covered call on THNQ is the covered call strategy applied to THNQ (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 THNQ etf at $93.86 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed THNQ chain strike and the premiums come straight from that session's bid/ask midpoint.
How are THNQ 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 THNQ covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 25.60%), the computed maximum profit is $481.50 per contract and the computed maximum loss is -$9,217.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a THNQ covered call?: The breakeven for the THNQ covered call priced on this page is roughly $92.19 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 THNQ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.34%; 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 THNQ?: Covered calls on THNQ are an income strategy run on existing THNQ 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 THNQ implied volatility affect this covered call?: THNQ ATM IV is at 25.60% with IV rank near 2.39%, 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.