How are URNM 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 URNM covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 47.30%), the computed maximum profit is $352.00 per contract and the computed maximum loss is -$5,147.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a URNM covered call?

The breakeven for the URNM covered call priced on this page is roughly $51.48 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 URNM market-implied 1-standard-deviation expected move is approximately 13.56%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current URNM implied volatility affect this covered call?

URNM ATM IV is at 47.30% with IV rank near 38.41%, 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.

URNM Covered Call Strategy

URNM (Sprott Uranium Miners ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The Sprott Uranium Miners ETF (URNM) primarily invests a minimum of 80% of its total assets in companies included in its benchmark index. This index is specifically designed to track businesses that dedicate a substantial portion—at least 50%—of their assets to either: (1) the direct activities of uranium mining, exploration, development, and production, or (2) related non-mining ventures such as holding physical uranium, owning uranium royalties, or providing other support services to the uranium industry. It's important to note that this fund is not diversified, concentrating its investments within this specific sector.

URNM (Sprott Uranium Miners ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.23B, a beta of 0.87 versus the broader market, a 52-week range of 43.1-84.95, average daily share volume of 713K, a public-listing history dating back to 2019. These structural characteristics shape how URNM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.87 places URNM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. URNM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on URNM?

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 URNM snapshot

As of June 30, 2026, spot at $52.58, ATM IV 47.30%, IV rank 38.41%, expected move 13.56%. The covered call on URNM 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 URNM specifically: URNM IV at 47.30% is mid-range versus its 1-year history, so the credit collected on a URNM covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 13.56% (roughly $7.13 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 URNM expiries trade a higher absolute premium for lower per-day decay. Position sizing on URNM should anchor to the underlying notional of $52.58 per share and to the trader's directional view on URNM etf.

URNM covered call setup

The URNM 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 URNM near $52.58, the first option leg uses a $55.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed URNM 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 URNM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$52.58	long
Sell 1	Call	$55.00	$1.10

URNM covered call risk and reward

Net Premium / Debit: -$5,148.00
Max Profit (per contract): $352.00
Max Loss (per contract): -$5,147.00
Breakeven(s): $51.48
Risk / Reward Ratio: 0.068

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.

URNM covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on URNM. 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%	-$5,147.00
$11.63	-77.9%	-$3,984.54
$23.26	-55.8%	-$2,822.08
$34.88	-33.7%	-$1,659.61
$46.51	-11.5%	-$497.15
$58.13	+10.6%	+$352.00
$69.76	+32.7%	+$352.00
$81.38	+54.8%	+$352.00
$93.01	+76.9%	+$352.00
$104.63	+99.0%	+$352.00

When traders use covered call on URNM

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

URNM thesis for this covered call

The market-implied 1-standard-deviation range for URNM extends from approximately $45.45 on the downside to $59.71 on the upside. A URNM covered call collects premium on an existing long URNM position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether URNM will breach that level within the expiration window. Current URNM IV rank near 38.41% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on URNM should anchor more to the directional view and the expected-move geometry. As a Financial Services name, URNM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to URNM-specific events.

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

Frequently asked questions

What is a covered call on URNM?: A covered call on URNM is the covered call strategy applied to URNM (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 URNM etf trading near $52.58, the strikes shown on this page are snapped to the nearest listed URNM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are URNM 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 URNM covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 47.30%), the computed maximum profit is $352.00 per contract and the computed maximum loss is -$5,147.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a URNM covered call?: The breakeven for the URNM covered call priced on this page is roughly $51.48 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 URNM market-implied 1-standard-deviation expected move is approximately 13.56%; 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 URNM?: Covered calls on URNM are an income strategy run on existing URNM 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 URNM implied volatility affect this covered call?: URNM ATM IV is at 47.30% with IV rank near 38.41%, 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.