UXI Covered Call Strategy
UXI (ProShares - Ultra Industrials), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The ProShares Ultra Industrials fund is designed to deliver daily investment returns equivalent to two times (2x) the daily performance of the S&P Industrials Select SectorSM Index, prior to the deduction of any fees and expenses.
UXI (ProShares - Ultra Industrials) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $28.4M, a beta of 2.02 versus the broader market, a 52-week range of 41.49-64.19, average daily share volume of 5K, a public-listing history dating back to 2007. These structural characteristics shape how UXI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.02 indicates UXI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. UXI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on UXI?
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 UXI snapshot
As of June 30, 2026, spot at $63.23, ATM IV 41.70%, IV rank 42.27%, expected move 11.96%. The covered call on UXI 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 UXI specifically: UXI IV at 41.70% is mid-range versus its 1-year history, so the credit collected on a UXI covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 11.96% (roughly $7.56 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 UXI expiries trade a higher absolute premium for lower per-day decay. Position sizing on UXI should anchor to the underlying notional of $63.23 per share and to the trader's directional view on UXI etf.
UXI covered call setup
The UXI 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 UXI near $63.23, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UXI 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 UXI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $63.23 | long |
| Sell 1 | Call | $65.00 | $1.53 |
UXI covered call risk and reward
- Net Premium / Debit
- -$6,170.50
- Max Profit (per contract)
- $329.50
- Max Loss (per contract)
- -$6,169.50
- Breakeven(s)
- $61.71
- Risk / Reward Ratio
- 0.053
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.
UXI covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on UXI. 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% | -$6,169.50 |
| $13.99 | -77.9% | -$4,771.56 |
| $27.97 | -55.8% | -$3,373.62 |
| $41.95 | -33.7% | -$1,975.68 |
| $55.93 | -11.5% | -$577.74 |
| $69.91 | +10.6% | +$329.50 |
| $83.89 | +32.7% | +$329.50 |
| $97.87 | +54.8% | +$329.50 |
| $111.85 | +76.9% | +$329.50 |
| $125.82 | +99.0% | +$329.50 |
When traders use covered call on UXI
Covered calls on UXI are an income strategy run on existing UXI etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
UXI thesis for this covered call
The market-implied 1-standard-deviation range for UXI extends from approximately $55.67 on the downside to $70.79 on the upside. A UXI covered call collects premium on an existing long UXI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether UXI will breach that level within the expiration window. Current UXI IV rank near 42.27% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on UXI should anchor more to the directional view and the expected-move geometry. As a Financial Services name, UXI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UXI-specific events.
UXI 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. UXI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UXI alongside the broader basket even when UXI-specific fundamentals are unchanged. Short-premium structures like a covered call on UXI carry tail risk when realized volatility exceeds the implied move; review historical UXI earnings reactions and macro stress periods before sizing. Always rebuild the position from current UXI chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on UXI?
- A covered call on UXI is the covered call strategy applied to UXI (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 UXI etf trading near $63.23, the strikes shown on this page are snapped to the nearest listed UXI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UXI 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 UXI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 41.70%), the computed maximum profit is $329.50 per contract and the computed maximum loss is -$6,169.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UXI covered call?
- The breakeven for the UXI covered call priced on this page is roughly $61.71 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 UXI market-implied 1-standard-deviation expected move is approximately 11.96%; 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 UXI?
- Covered calls on UXI are an income strategy run on existing UXI 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 UXI implied volatility affect this covered call?
- UXI ATM IV is at 41.70% with IV rank near 42.27%, 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.