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 August 17, 2026 end-of-day chain at a 30-day expiry (ATM IV 30.70%), the computed maximum profit is $549.00 per contract and the computed maximum loss is -$6,950.00 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 $69.51 at expiration, derived from the August 17, 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 URE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current URE implied volatility affect this covered call?

URE ATM IV is at 30.70% with IV rank near 1.97%, 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.

URE Covered Call Strategy

URE (ProShares Ultra Real Estate), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The fund invests in financial instruments that the advisors believe, in combination, should produce daily returns consistent with the Daily Target. The index is designed to measure the performance of real estate companies included in the S&P 500 Index. Under normal circumstances, the fund will obtain leveraged exposure to at least 80% of its total assets in components of the index or in instruments with similar economic characteristics. The fund is non-diversified.

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 1.91 versus the broader market, a 52-week range of 57.38-75.65, 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 1.91 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.

URE snapshot

As of August 17, 2026, spot at $70.56, ATM IV 30.70%, IV rank 1.97%, expected move 8.80%. The covered call on URE below is built from the August 17, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 32-day expiry.

Why this covered call structure on URE specifically: URE IV at 30.70% is on the cheap side of its 1-year range, which means a premium-selling URE covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.80% (roughly $6.21 on the underlying). The 32-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 $70.56 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 August 17, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With URE at $70.56 on that close, the first option leg uses a $75.00 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 32-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	$70.56	long
Sell 1	Call	$75.00	$1.05

URE covered call risk and reward

Net Premium / Debit: -$6,951.00
Max Profit (per contract): $549.00
Max Loss (per contract): -$6,950.00
Breakeven(s): $69.51
Risk / Reward Ratio: 0.079

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.

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%	-$6,950.00
$15.61	-77.9%	-$5,389.99
$31.21	-55.8%	-$3,829.98
$46.81	-33.7%	-$2,269.97
$62.41	-11.5%	-$709.96
$78.01	+10.6%	+$549.00
$93.61	+32.7%	+$549.00
$109.21	+54.8%	+$549.00
$124.81	+76.9%	+$549.00
$140.41	+99.0%	+$549.00

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 $64.35 on the downside to $76.77 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 1.97% 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 URE at 30.70%. 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 at $70.56 on the August 17, 2026 close, the strikes shown on this page are snapped to the nearest listed URE chain strike and the premiums come straight from that session's 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 August 17, 2026 end-of-day chain at a 30-day expiry (ATM IV 30.70%), the computed maximum profit is $549.00 per contract and the computed maximum loss is -$6,950.00 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 $69.51 at expiration, derived from the August 17, 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 URE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.80%; 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 30.70% with IV rank near 1.97%, 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.