How are TSLS 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 TSLS covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 43.30%), the computed maximum profit is $349.50 per contract and the computed maximum loss is -$4,949.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TSLS covered call?

The breakeven for the TSLS covered call priced on this page is roughly $49.50 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 TSLS market-implied 1-standard-deviation expected move is approximately 12.41%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TSLS implied volatility affect this covered call?

TSLS ATM IV is at 43.30% with IV rank near 5.56%, 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.

TSLS Covered Call Strategy

TSLS (Direxion Daily TSLA Bear 1X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.

The Direxion Daily TSLA Bull 2X ETF and Direxion Daily TSLA Bear 1X ETF are designed to achieve particular daily returns based on the performance of Tesla, Inc. (NASDAQ: TSLA) common stock. The Bull 2X ETF targets daily investment outcomes that are double (200%) the stock's performance, before deducting fees and expenses. In contrast, the Bear 1X ETF strives for daily results equal to the inverse (or opposite) movement of Tesla's shares, prior to any associated costs.

TSLS (Direxion Daily TSLA Bear 1X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $83.8M, a beta of -1.46 versus the broader market, a 52-week range of 48.71-853, average daily share volume of 710K, a public-listing history dating back to 2022. These structural characteristics shape how TSLS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -1.46 indicates TSLS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. TSLS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on TSLS?

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 TSLS snapshot

As of June 30, 2026, spot at $50.88, ATM IV 43.30%, IV rank 5.56%, expected move 12.41%. The covered call on TSLS 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 17-day expiry.

Why this covered call structure on TSLS specifically: TSLS IV at 43.30% is on the cheap side of its 1-year range, which means a premium-selling TSLS covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 12.41% (roughly $6.32 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TSLS expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSLS should anchor to the underlying notional of $50.88 per share and to the trader's directional view on TSLS etf.

TSLS covered call setup

The TSLS 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 TSLS near $50.88, the first option leg uses a $53.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TSLS chain at a 17-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 TSLS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$50.88	long
Sell 1	Call	$53.00	$1.38

TSLS covered call risk and reward

Net Premium / Debit: -$4,950.50
Max Profit (per contract): $349.50
Max Loss (per contract): -$4,949.50
Breakeven(s): $49.50
Risk / Reward Ratio: 0.071

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.

TSLS covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on TSLS. 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%	-$4,949.50
$11.26	-77.9%	-$3,824.63
$22.51	-55.8%	-$2,699.75
$33.76	-33.7%	-$1,574.88
$45.00	-11.5%	-$450.00
$56.25	+10.6%	+$349.50
$67.50	+32.7%	+$349.50
$78.75	+54.8%	+$349.50
$90.00	+76.9%	+$349.50
$101.25	+99.0%	+$349.50

When traders use covered call on TSLS

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

TSLS thesis for this covered call

The market-implied 1-standard-deviation range for TSLS extends from approximately $44.56 on the downside to $57.20 on the upside. A TSLS covered call collects premium on an existing long TSLS position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether TSLS will breach that level within the expiration window. Current TSLS IV rank near 5.56% 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 TSLS at 43.30%. As a Financial Services name, TSLS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TSLS-specific events.

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

Frequently asked questions

What is a covered call on TSLS?: A covered call on TSLS is the covered call strategy applied to TSLS (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 TSLS etf trading near $50.88, the strikes shown on this page are snapped to the nearest listed TSLS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TSLS 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 TSLS covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 43.30%), the computed maximum profit is $349.50 per contract and the computed maximum loss is -$4,949.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TSLS covered call?: The breakeven for the TSLS covered call priced on this page is roughly $49.50 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 TSLS market-implied 1-standard-deviation expected move is approximately 12.41%; 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 TSLS?: Covered calls on TSLS are an income strategy run on existing TSLS 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 TSLS implied volatility affect this covered call?: TSLS ATM IV is at 43.30% with IV rank near 5.56%, 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.