How are UTHY 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 UTHY covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 37.50%), the computed maximum profit is $248.00 per contract and the computed maximum loss is -$3,851.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a UTHY covered call?

The breakeven for the UTHY covered call priced on this page is roughly $38.52 at expiration, derived from the August 14, 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 UTHY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current UTHY implied volatility affect this covered call?

UTHY ATM IV is at 37.50% with IV rank near 6.46%, 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.

UTHY Covered Call Strategy

UTHY (US Treasury 30 Year Bond ETF), in the Financial Services sector, (Asset Management - Bonds industry), listed on NASDAQ.

The fund's manager primarily aims to fulfill its investment targets by committing at least 80% of the fund's total capital (which includes any funds borrowed for investment) to the securities comprising its benchmark index, during typical market environments. This benchmark is the ICE BofA Current 30-Year US Treasury Index, an index composed entirely of the most recently issued 30-year U.S. Treasury bond.

UTHY (US Treasury 30 Year Bond ETF) trades in the Financial Services sector, specifically Asset Management - Bonds, with a market capitalization of approximately $19.6M, a beta of 2.36 versus the broader market, a 52-week range of 38.58-43.44, average daily share volume of 108K, a public-listing history dating back to 2023. These structural characteristics shape how UTHY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.36 indicates UTHY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. UTHY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on UTHY?

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.

UTHY snapshot

As of August 14, 2026, spot at $38.77, ATM IV 37.50%, IV rank 6.46%, expected move 10.75%. The covered call on UTHY below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this covered call structure on UTHY specifically: UTHY IV at 37.50% is on the cheap side of its 1-year range, which means a premium-selling UTHY covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 10.75% (roughly $4.17 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UTHY expiries trade a higher absolute premium for lower per-day decay. Position sizing on UTHY should anchor to the underlying notional of $38.77 per share and to the trader's directional view on UTHY etf.

UTHY covered call setup

The UTHY covered call below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With UTHY at $38.77 on that close, the first option leg uses a $41.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UTHY chain at a 35-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 UTHY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$38.77	long
Sell 1	Call	$41.00	$0.25

UTHY covered call risk and reward

Net Premium / Debit: -$3,852.00
Max Profit (per contract): $248.00
Max Loss (per contract): -$3,851.00
Breakeven(s): $38.52
Risk / Reward Ratio: 0.064

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.

UTHY covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on UTHY. 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%	-$3,851.00
$8.58	-77.9%	-$2,993.88
$17.15	-55.8%	-$2,136.77
$25.72	-33.7%	-$1,279.65
$34.29	-11.5%	-$422.54
$42.87	+10.6%	+$248.00
$51.44	+32.7%	+$248.00
$60.01	+54.8%	+$248.00
$68.58	+76.9%	+$248.00
$77.15	+99.0%	+$248.00

When traders use covered call on UTHY

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

UTHY thesis for this covered call

The market-implied 1-standard-deviation range for UTHY extends from approximately $34.60 on the downside to $42.94 on the upside. A UTHY covered call collects premium on an existing long UTHY position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether UTHY will breach that level within the expiration window. Current UTHY IV rank near 6.46% 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 UTHY at 37.50%. As a Financial Services name, UTHY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UTHY-specific events.

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

Frequently asked questions

What is a covered call on UTHY?: A covered call on UTHY is the covered call strategy applied to UTHY (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 UTHY etf at $38.77 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed UTHY chain strike and the premiums come straight from that session's bid/ask midpoint.
How are UTHY 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 UTHY covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 37.50%), the computed maximum profit is $248.00 per contract and the computed maximum loss is -$3,851.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a UTHY covered call?: The breakeven for the UTHY covered call priced on this page is roughly $38.52 at expiration, derived from the August 14, 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 UTHY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.75%; 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 UTHY?: Covered calls on UTHY are an income strategy run on existing UTHY 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 UTHY implied volatility affect this covered call?: UTHY ATM IV is at 37.50% with IV rank near 6.46%, 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.