How are VICE 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 VICE covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 29.50%), the computed maximum profit is $245.00 per contract and the computed maximum loss is -$3,254.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a VICE covered call?

The breakeven for the VICE covered call priced on this page is roughly $32.55 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 VICE market-implied 1-standard-deviation expected move is approximately 8.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current VICE implied volatility affect this covered call?

VICE ATM IV is at 29.50% with IV rank near 11.33%, 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.

VICE Covered Call Strategy

VICE (AdvisorShares Vice ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The fund is an actively managed ETF that seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its net assets in securities of (i) companies that derive at least 50% of their net revenue from tobacco and alcoholic beverages, (ii) companies that derive at least 50% of their net revenue from the food and beverage industry, and (iii) companies that derive at least 50% of their net revenue from gaming activities. It invests primarily in U.S. exchange listed equity securities, including common and preferred stock and ADRs.

VICE (AdvisorShares Vice ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $7.4M, a beta of 1.03 versus the broader market, a 52-week range of 31.08-36.53, average daily share volume of 0K, a public-listing history dating back to 2017. These structural characteristics shape how VICE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.03 places VICE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. VICE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on VICE?

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 VICE snapshot

As of May 15, 2026, spot at $33.06, ATM IV 29.50%, IV rank 11.33%, expected move 8.46%. The covered call on VICE 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 VICE specifically: VICE IV at 29.50% is on the cheap side of its 1-year range, which means a premium-selling VICE covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.46% (roughly $2.80 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 VICE expiries trade a higher absolute premium for lower per-day decay. Position sizing on VICE should anchor to the underlying notional of $33.06 per share and to the trader's directional view on VICE etf.

VICE covered call setup

The VICE 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 VICE near $33.06, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VICE 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 VICE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$33.06	long
Sell 1	Call	$35.00	$0.51

VICE covered call risk and reward

Net Premium / Debit: -$3,255.00
Max Profit (per contract): $245.00
Max Loss (per contract): -$3,254.00
Breakeven(s): $32.55
Risk / Reward Ratio: 0.075

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.

VICE covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on VICE. 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%	-$3,254.00
$7.32	-77.9%	-$2,523.14
$14.63	-55.8%	-$1,792.27
$21.94	-33.6%	-$1,061.41
$29.24	-11.5%	-$330.54
$36.55	+10.6%	+$245.00
$43.86	+32.7%	+$245.00
$51.17	+54.8%	+$245.00
$58.48	+76.9%	+$245.00
$65.79	+99.0%	+$245.00

When traders use covered call on VICE

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

VICE thesis for this covered call

The market-implied 1-standard-deviation range for VICE extends from approximately $30.26 on the downside to $35.86 on the upside. A VICE covered call collects premium on an existing long VICE position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether VICE will breach that level within the expiration window. Current VICE IV rank near 11.33% 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 VICE at 29.50%. As a Financial Services name, VICE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VICE-specific events.

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

Frequently asked questions

What is a covered call on VICE?: A covered call on VICE is the covered call strategy applied to VICE (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 VICE etf trading near $33.06, the strikes shown on this page are snapped to the nearest listed VICE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are VICE 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 VICE covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 29.50%), the computed maximum profit is $245.00 per contract and the computed maximum loss is -$3,254.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a VICE covered call?: The breakeven for the VICE covered call priced on this page is roughly $32.55 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 VICE market-implied 1-standard-deviation expected move is approximately 8.46%; 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 VICE?: Covered calls on VICE are an income strategy run on existing VICE 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 VICE implied volatility affect this covered call?: VICE ATM IV is at 29.50% with IV rank near 11.33%, 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.