How are UYM 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 UYM covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 37.90%), the computed maximum profit is $251.00 per contract and the computed maximum loss is -$3,048.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a UYM covered call?

The breakeven for the UYM covered call priced on this page is roughly $30.49 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 UYM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current UYM implied volatility affect this covered call?

UYM ATM IV is at 37.90% with IV rank near 16.14%, 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.

UYM Covered Call Strategy

UYM (ProShares - Ultra Materials), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.

The ProShares Ultra Materials fund (UYM) endeavors to provide daily returns that are double (2x) the daily performance of the S&P Materials Select SectorSM Index. This objective is pursued before accounting for any associated fees and operating expenses.

UYM (ProShares - Ultra Materials) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $33.3M, a beta of 1.36 versus the broader market, a 52-week range of 21.34-34.54, average daily share volume of 10K, a public-listing history dating back to 2007. These structural characteristics shape how UYM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.36 indicates UYM has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. UYM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on UYM?

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.

UYM snapshot

As of August 14, 2026, spot at $31.34, ATM IV 37.90%, IV rank 16.14%, expected move 10.87%. The covered call on UYM 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 UYM specifically: UYM IV at 37.90% is on the cheap side of its 1-year range, which means a premium-selling UYM covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 10.87% (roughly $3.41 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 UYM expiries trade a higher absolute premium for lower per-day decay. Position sizing on UYM should anchor to the underlying notional of $31.34 per share and to the trader's directional view on UYM etf.

UYM covered call setup

The UYM 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 UYM at $31.34 on that close, the first option leg uses a $33.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UYM 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 UYM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$31.34	long
Sell 1	Call	$33.00	$0.85

UYM covered call risk and reward

Net Premium / Debit: -$3,049.00
Max Profit (per contract): $251.00
Max Loss (per contract): -$3,048.00
Breakeven(s): $30.49
Risk / Reward Ratio: 0.082

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.

UYM covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on UYM. 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%	-$3,048.00
$6.94	-77.9%	-$2,355.17
$13.87	-55.8%	-$1,662.33
$20.80	-33.6%	-$969.50
$27.72	-11.5%	-$276.66
$34.65	+10.6%	+$251.00
$41.58	+32.7%	+$251.00
$48.51	+54.8%	+$251.00
$55.44	+76.9%	+$251.00
$62.37	+99.0%	+$251.00

When traders use covered call on UYM

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

UYM thesis for this covered call

The market-implied 1-standard-deviation range for UYM extends from approximately $27.93 on the downside to $34.75 on the upside. A UYM covered call collects premium on an existing long UYM position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether UYM will breach that level within the expiration window. Current UYM IV rank near 16.14% 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 UYM at 37.90%. As a Financial Services name, UYM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UYM-specific events.

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

Frequently asked questions

What is a covered call on UYM?: A covered call on UYM is the covered call strategy applied to UYM (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 UYM etf at $31.34 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed UYM chain strike and the premiums come straight from that session's bid/ask midpoint.
How are UYM 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 UYM covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 37.90%), the computed maximum profit is $251.00 per contract and the computed maximum loss is -$3,048.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a UYM covered call?: The breakeven for the UYM covered call priced on this page is roughly $30.49 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 UYM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.87%; 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 UYM?: Covered calls on UYM are an income strategy run on existing UYM 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 UYM implied volatility affect this covered call?: UYM ATM IV is at 37.90% with IV rank near 16.14%, 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.