UX Covered Call Strategy
UX (Roundhill Investments - Uranium ETF), in the Energy sector, (Oil & Gas Energy industry), listed on CBOE.
Roundhill believes that uranium is a crucial resource in meeting the growing global demand for reliable electricity, driven by the expansion of nuclear power. The Roundhill Uranium ETF (“UX”) is the first U.S.-listed ETF to provide exposure to the price of physical uranium (U₃O₈).
UX (Roundhill Investments - Uranium ETF) trades in the Energy sector, specifically Oil & Gas Energy, with a market capitalization of approximately $2.7M, a beta of 0.86 versus the broader market, a 52-week range of 24.113-38.72, average daily share volume of 4K, a public-listing history dating back to 2025. These structural characteristics shape how UX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.86 places UX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. UX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on UX?
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 UX snapshot
As of May 15, 2026, spot at $30.02, ATM IV 28.80%, IV rank 5.06%, expected move 8.26%. The covered call on UX 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 UX specifically: UX IV at 28.80% is on the cheap side of its 1-year range, which means a premium-selling UX covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.26% (roughly $2.48 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 UX expiries trade a higher absolute premium for lower per-day decay. Position sizing on UX should anchor to the underlying notional of $30.02 per share and to the trader's directional view on UX etf.
UX covered call setup
The UX 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 UX near $30.02, the first option leg uses a $31.82 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UX 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 UX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $30.02 | long |
| Sell 1 | Call | $31.82 | $0.34 |
UX covered call risk and reward
- Net Premium / Debit
- -$2,968.00
- Max Profit (per contract)
- $214.00
- Max Loss (per contract)
- -$2,967.00
- Breakeven(s)
- $29.68
- Risk / Reward Ratio
- 0.072
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.
UX covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on UX. 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% | -$2,967.00 |
| $6.65 | -77.9% | -$2,303.35 |
| $13.28 | -55.8% | -$1,639.70 |
| $19.92 | -33.6% | -$976.06 |
| $26.56 | -11.5% | -$312.41 |
| $33.19 | +10.6% | +$214.00 |
| $39.83 | +32.7% | +$214.00 |
| $46.47 | +54.8% | +$214.00 |
| $53.10 | +76.9% | +$214.00 |
| $59.74 | +99.0% | +$214.00 |
When traders use covered call on UX
Covered calls on UX are an income strategy run on existing UX etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
UX thesis for this covered call
The market-implied 1-standard-deviation range for UX extends from approximately $27.54 on the downside to $32.50 on the upside. A UX covered call collects premium on an existing long UX position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether UX will breach that level within the expiration window. Current UX IV rank near 5.06% 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 UX at 28.80%. As a Energy name, UX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UX-specific events.
UX 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. UX positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UX alongside the broader basket even when UX-specific fundamentals are unchanged. Short-premium structures like a covered call on UX carry tail risk when realized volatility exceeds the implied move; review historical UX earnings reactions and macro stress periods before sizing. Always rebuild the position from current UX chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on UX?
- A covered call on UX is the covered call strategy applied to UX (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 UX etf trading near $30.02, the strikes shown on this page are snapped to the nearest listed UX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UX 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 UX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 28.80%), the computed maximum profit is $214.00 per contract and the computed maximum loss is -$2,967.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UX covered call?
- The breakeven for the UX covered call priced on this page is roughly $29.68 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 UX market-implied 1-standard-deviation expected move is approximately 8.26%; 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 UX?
- Covered calls on UX are an income strategy run on existing UX 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 UX implied volatility affect this covered call?
- UX ATM IV is at 28.80% with IV rank near 5.06%, 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.