How are UVIX 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 UVIX covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 91.21%), the computed maximum profit is $600.50 per contract and the computed maximum loss is -$4,198.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a UVIX covered call?

The breakeven for the UVIX covered call priced on this page is roughly $42.00 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 UVIX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current UVIX implied volatility affect this covered call?

UVIX ATM IV is at 91.21% with IV rank near 23.91%, 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.

UVIX Covered Call Strategy

UVIX (2x Long VIX Futures ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on CBOE.

This index is designed to track the daily performance of a hypothetical investment basket consisting of long positions in VIX futures contracts, specifically those with the closest two expiration dates. To maintain a consistent average time until maturity for these futures, the portfolio is adjusted through a daily rebalancing mechanism. The index's value is finalized each day at 4:00 p.m. Eastern Time, calculated from the average trading price of its component futures during the period between 3:45 p.m. and 4:00 p.m. Eastern Time.

UVIX (2x Long VIX Futures ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $75.7M, a beta of -4.27 versus the broader market, a 52-week range of 46.02-299.9, average daily share volume of 2.1M, a public-listing history dating back to 2022. These structural characteristics shape how UVIX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -4.27 indicates UVIX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a covered call on UVIX?

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.

UVIX snapshot

As of August 14, 2026, spot at $45.72, ATM IV 91.21%, IV rank 23.91%, expected move 26.15%. The covered call on UVIX 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 28-day expiry.

Why this covered call structure on UVIX specifically: UVIX IV at 91.21% is on the cheap side of its 1-year range, which means a premium-selling UVIX covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 26.15% (roughly $11.96 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UVIX expiries trade a higher absolute premium for lower per-day decay. Position sizing on UVIX should anchor to the underlying notional of $45.72 per share and to the trader's directional view on UVIX etf.

UVIX covered call setup

The UVIX 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 UVIX at $45.72 on that close, the first option leg uses a $48.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UVIX chain at a 28-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 UVIX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$45.72	long
Sell 1	Call	$48.00	$3.73

UVIX covered call risk and reward

Net Premium / Debit: -$4,199.50
Max Profit (per contract): $600.50
Max Loss (per contract): -$4,198.50
Breakeven(s): $42.00
Risk / Reward Ratio: 0.143

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.

UVIX covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on UVIX. 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%	-$4,198.50
$10.12	-77.9%	-$3,187.72
$20.23	-55.8%	-$2,176.93
$30.33	-33.7%	-$1,166.15
$40.44	-11.5%	-$155.36
$50.55	+10.6%	+$600.50
$60.66	+32.7%	+$600.50
$70.76	+54.8%	+$600.50
$80.87	+76.9%	+$600.50
$90.98	+99.0%	+$600.50

When traders use covered call on UVIX

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

UVIX thesis for this covered call

The market-implied 1-standard-deviation range for UVIX extends from approximately $33.76 on the downside to $57.68 on the upside. A UVIX covered call collects premium on an existing long UVIX position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether UVIX will breach that level within the expiration window. Current UVIX IV rank near 23.91% 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 UVIX at 91.21%. As a Financial Services name, UVIX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UVIX-specific events.

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

Frequently asked questions

What is a covered call on UVIX?: A covered call on UVIX is the covered call strategy applied to UVIX (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 UVIX etf at $45.72 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed UVIX chain strike and the premiums come straight from that session's bid/ask midpoint.
How are UVIX 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 UVIX covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 91.21%), the computed maximum profit is $600.50 per contract and the computed maximum loss is -$4,198.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a UVIX covered call?: The breakeven for the UVIX covered call priced on this page is roughly $42.00 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 UVIX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.15%; 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 UVIX?: Covered calls on UVIX are an income strategy run on existing UVIX 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 UVIX implied volatility affect this covered call?: UVIX ATM IV is at 91.21% with IV rank near 23.91%, 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.