UBR Covered Call Strategy
UBR (ProShares - Ultra MSCI Brazil Capped), in the Financial Services sector, (Asset Management industry), listed on AMEX.
ProShares Ultra MSCI Brazil Capped seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the MSCI Brazil 25/50 Index.
UBR (ProShares - Ultra MSCI Brazil Capped) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $4.3M, a beta of 1.18 versus the broader market, a 52-week range of 18.09-43.88, average daily share volume of 7K, a public-listing history dating back to 2010. These structural characteristics shape how UBR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.18 places UBR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. UBR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on UBR?
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 UBR snapshot
As of May 15, 2026, spot at $32.27, ATM IV 61.40%, IV rank 39.16%, expected move 17.60%. The covered call on UBR 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 UBR specifically: UBR IV at 61.40% is mid-range versus its 1-year history, so the credit collected on a UBR covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 17.60% (roughly $5.68 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 UBR expiries trade a higher absolute premium for lower per-day decay. Position sizing on UBR should anchor to the underlying notional of $32.27 per share and to the trader's directional view on UBR etf.
UBR covered call setup
The UBR 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 UBR near $32.27, the first option leg uses a $34.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UBR 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 UBR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $32.27 | long |
| Sell 1 | Call | $34.00 | $1.86 |
UBR covered call risk and reward
- Net Premium / Debit
- -$3,041.00
- Max Profit (per contract)
- $359.00
- Max Loss (per contract)
- -$3,040.00
- Breakeven(s)
- $30.41
- Risk / Reward Ratio
- 0.118
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.
UBR covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on UBR. 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% | -$3,040.00 |
| $7.14 | -77.9% | -$2,326.60 |
| $14.28 | -55.8% | -$1,613.21 |
| $21.41 | -33.6% | -$899.81 |
| $28.55 | -11.5% | -$186.41 |
| $35.68 | +10.6% | +$359.00 |
| $42.81 | +32.7% | +$359.00 |
| $49.95 | +54.8% | +$359.00 |
| $57.08 | +76.9% | +$359.00 |
| $64.22 | +99.0% | +$359.00 |
When traders use covered call on UBR
Covered calls on UBR are an income strategy run on existing UBR etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
UBR thesis for this covered call
The market-implied 1-standard-deviation range for UBR extends from approximately $26.59 on the downside to $37.95 on the upside. A UBR covered call collects premium on an existing long UBR position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether UBR will breach that level within the expiration window. Current UBR IV rank near 39.16% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on UBR should anchor more to the directional view and the expected-move geometry. As a Financial Services name, UBR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UBR-specific events.
UBR 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. UBR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UBR alongside the broader basket even when UBR-specific fundamentals are unchanged. Short-premium structures like a covered call on UBR carry tail risk when realized volatility exceeds the implied move; review historical UBR earnings reactions and macro stress periods before sizing. Always rebuild the position from current UBR chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on UBR?
- A covered call on UBR is the covered call strategy applied to UBR (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 UBR etf trading near $32.27, the strikes shown on this page are snapped to the nearest listed UBR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UBR 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 UBR covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 61.40%), the computed maximum profit is $359.00 per contract and the computed maximum loss is -$3,040.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UBR covered call?
- The breakeven for the UBR covered call priced on this page is roughly $30.41 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 UBR market-implied 1-standard-deviation expected move is approximately 17.60%; 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 UBR?
- Covered calls on UBR are an income strategy run on existing UBR 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 UBR implied volatility affect this covered call?
- UBR ATM IV is at 61.40% with IV rank near 39.16%, 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.