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 $28.2M, a beta of 1.36 versus the broader market, a 52-week range of 21.34-34.54, average daily share volume of 11K, 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 September 30, 2026, spot at $26.98, ATM IV 67.00%, IV rank 41.99%, expected move 19.21%. The covered call on UYM below is built from the September 30, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 16-day expiry.
Why this covered call structure on UYM specifically: UYM IV at 67.00% is mid-range versus its 1-year history, so the credit collected on a UYM covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 19.21% (roughly $5.18 on the underlying). The 16-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 $26.98 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 September 30, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With UYM at $26.98 on that close, the first option leg uses a $28.00 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 16-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 | $26.98 | long |
| Sell 1 | Call | $28.00 | $1.10 |
UYM covered call risk and reward
- Net Premium / Debit
- -$2,588.00
- Max Profit (per contract)
- $212.00
- Max Loss (per contract)
- -$2,587.00
- Breakeven(s)
- $25.88
- 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$2,587.00 |
| $5.97 | -77.9% | -$1,990.57 |
| $11.94 | -55.8% | -$1,394.14 |
| $17.90 | -33.6% | -$797.70 |
| $23.87 | -11.5% | -$201.27 |
| $29.83 | +10.6% | +$212.00 |
| $35.80 | +32.7% | +$212.00 |
| $41.76 | +54.8% | +$212.00 |
| $47.72 | +76.9% | +$212.00 |
| $53.69 | +99.0% | +$212.00 |
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 $21.80 on the downside to $32.16 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 41.99% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on UYM should anchor more to the directional view and the expected-move geometry. 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 $26.98 on the September 30, 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 September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 67.00%), the computed maximum profit is $212.00 per contract and the computed maximum loss is -$2,587.00 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 $25.88 at expiration, derived from the September 30, 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 19.21%; 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 67.00% with IV rank near 41.99%, 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.