UBRL Covered Call Strategy
UBRL (GraniteShares 2x Long Uber Daily ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Fund seeks daily investment results, before fees and expenses, of 2 times (200%) the daily percentage change of the common stock of Uber Technologies Inc, (NASDAQ: UBER) There is no guarantee that the Fund will meet its stated objective. The fund should not be expected to provide 2 times the cumulative return of UBER for periods greater than a day.
UBRL (GraniteShares 2x Long Uber Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $17.6M, a beta of 1.59 versus the broader market, a 52-week range of 14.28-38.35, average daily share volume of 102K, a public-listing history dating back to 2022. These structural characteristics shape how UBRL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.59 indicates UBRL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. UBRL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on UBRL?
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 UBRL snapshot
As of May 15, 2026, spot at $16.83, ATM IV 74.40%, IV rank 8.32%, expected move 21.33%. The covered call on UBRL 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 UBRL specifically: UBRL IV at 74.40% is on the cheap side of its 1-year range, which means a premium-selling UBRL covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 21.33% (roughly $3.59 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 UBRL expiries trade a higher absolute premium for lower per-day decay. Position sizing on UBRL should anchor to the underlying notional of $16.83 per share and to the trader's directional view on UBRL etf.
UBRL covered call setup
The UBRL 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 UBRL near $16.83, the first option leg uses a $18.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UBRL 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 UBRL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $16.83 | long |
| Sell 1 | Call | $18.00 | $0.80 |
UBRL covered call risk and reward
- Net Premium / Debit
- -$1,603.00
- Max Profit (per contract)
- $197.00
- Max Loss (per contract)
- -$1,602.00
- Breakeven(s)
- $16.03
- Risk / Reward Ratio
- 0.123
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.
UBRL covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on UBRL. 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 | -99.9% | -$1,602.00 |
| $3.73 | -77.8% | -$1,229.99 |
| $7.45 | -55.7% | -$857.98 |
| $11.17 | -33.6% | -$485.97 |
| $14.89 | -11.5% | -$113.96 |
| $18.61 | +10.6% | +$197.00 |
| $22.33 | +32.7% | +$197.00 |
| $26.05 | +54.8% | +$197.00 |
| $29.77 | +76.9% | +$197.00 |
| $33.49 | +99.0% | +$197.00 |
When traders use covered call on UBRL
Covered calls on UBRL are an income strategy run on existing UBRL etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
UBRL thesis for this covered call
The market-implied 1-standard-deviation range for UBRL extends from approximately $13.24 on the downside to $20.42 on the upside. A UBRL covered call collects premium on an existing long UBRL position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether UBRL will breach that level within the expiration window. Current UBRL IV rank near 8.32% 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 UBRL at 74.40%. As a Financial Services name, UBRL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UBRL-specific events.
UBRL 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. UBRL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UBRL alongside the broader basket even when UBRL-specific fundamentals are unchanged. Short-premium structures like a covered call on UBRL carry tail risk when realized volatility exceeds the implied move; review historical UBRL earnings reactions and macro stress periods before sizing. Always rebuild the position from current UBRL chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on UBRL?
- A covered call on UBRL is the covered call strategy applied to UBRL (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 UBRL etf trading near $16.83, the strikes shown on this page are snapped to the nearest listed UBRL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UBRL 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 UBRL covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 74.40%), the computed maximum profit is $197.00 per contract and the computed maximum loss is -$1,602.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UBRL covered call?
- The breakeven for the UBRL covered call priced on this page is roughly $16.03 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 UBRL market-implied 1-standard-deviation expected move is approximately 21.33%; 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 UBRL?
- Covered calls on UBRL are an income strategy run on existing UBRL 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 UBRL implied volatility affect this covered call?
- UBRL ATM IV is at 74.40% with IV rank near 8.32%, 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.