URE Covered Call Strategy
URE (ProShares - Ultra Real Estate), in the Financial Services sector, (Asset Management industry), listed on AMEX.
ProShares Ultra Real Estate seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the S&P Real Estate Select SectorSM Index.
URE (ProShares - Ultra Real Estate) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $56.4M, a beta of 1.92 versus the broader market, a 52-week range of 57.38-71.45, average daily share volume of 4K, a public-listing history dating back to 2007. These structural characteristics shape how URE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.92 indicates URE has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. URE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on URE?
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 URE snapshot
As of May 15, 2026, spot at $66.25, ATM IV 36.80%, IV rank 42.98%, expected move 10.55%. The covered call on URE 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 URE specifically: URE IV at 36.80% is mid-range versus its 1-year history, so the credit collected on a URE covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 10.55% (roughly $6.99 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 URE expiries trade a higher absolute premium for lower per-day decay. Position sizing on URE should anchor to the underlying notional of $66.25 per share and to the trader's directional view on URE etf.
URE covered call setup
The URE 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 URE near $66.25, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed URE 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 URE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $66.25 | long |
| Sell 1 | Call | $70.00 | $1.73 |
URE covered call risk and reward
- Net Premium / Debit
- -$6,452.50
- Max Profit (per contract)
- $547.50
- Max Loss (per contract)
- -$6,451.50
- Breakeven(s)
- $64.53
- Risk / Reward Ratio
- 0.085
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.
URE covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on URE. 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% | -$6,451.50 |
| $14.66 | -77.9% | -$4,986.79 |
| $29.30 | -55.8% | -$3,522.07 |
| $43.95 | -33.7% | -$2,057.36 |
| $58.60 | -11.5% | -$592.65 |
| $73.25 | +10.6% | +$547.50 |
| $87.89 | +32.7% | +$547.50 |
| $102.54 | +54.8% | +$547.50 |
| $117.19 | +76.9% | +$547.50 |
| $131.83 | +99.0% | +$547.50 |
When traders use covered call on URE
Covered calls on URE are an income strategy run on existing URE etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
URE thesis for this covered call
The market-implied 1-standard-deviation range for URE extends from approximately $59.26 on the downside to $73.24 on the upside. A URE covered call collects premium on an existing long URE position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether URE will breach that level within the expiration window. Current URE IV rank near 42.98% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on URE should anchor more to the directional view and the expected-move geometry. As a Financial Services name, URE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to URE-specific events.
URE 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. URE positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move URE alongside the broader basket even when URE-specific fundamentals are unchanged. Short-premium structures like a covered call on URE carry tail risk when realized volatility exceeds the implied move; review historical URE earnings reactions and macro stress periods before sizing. Always rebuild the position from current URE chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on URE?
- A covered call on URE is the covered call strategy applied to URE (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 URE etf trading near $66.25, the strikes shown on this page are snapped to the nearest listed URE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are URE 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 URE covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 36.80%), the computed maximum profit is $547.50 per contract and the computed maximum loss is -$6,451.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a URE covered call?
- The breakeven for the URE covered call priced on this page is roughly $64.53 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 URE market-implied 1-standard-deviation expected move is approximately 10.55%; 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 URE?
- Covered calls on URE are an income strategy run on existing URE 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 URE implied volatility affect this covered call?
- URE ATM IV is at 36.80% with IV rank near 42.98%, 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.