How are WTAI 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 WTAI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 31.90%), the computed maximum profit is $345.00 per contract and the computed maximum loss is -$3,954.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a WTAI covered call?

The breakeven for the WTAI covered call priced on this page is roughly $39.55 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 WTAI market-implied 1-standard-deviation expected move is approximately 9.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current WTAI implied volatility affect this covered call?

WTAI ATM IV is at 31.90% with IV rank near 3.91%, 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.

WTAI Covered Call Strategy

WTAI (WisdomTree Artificial Intelligence and Innovation Fund), in the Financial Services sector, (Asset Management industry), listed on CBOE.

The index is designed to provide exposure to equity securities of exchange-listed companies globally, including developed countries and emerging markets throughout the world, which are primarily involved in the investment theme of Artificial Intelligence and Innovation. To the extent the index concentrates in the securities of a particular industry or group of industries, the fund will concentrate its investments to approximately the same extent as the index. It is non-diversified.

WTAI (WisdomTree Artificial Intelligence and Innovation Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $559.9M, a beta of 1.81 versus the broader market, a 52-week range of 21.67-41.495, average daily share volume of 118K, a public-listing history dating back to 2021. These structural characteristics shape how WTAI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.81 indicates WTAI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. WTAI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on WTAI?

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 WTAI snapshot

As of May 15, 2026, spot at $40.55, ATM IV 31.90%, IV rank 3.91%, expected move 9.15%. The covered call on WTAI 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 WTAI specifically: WTAI IV at 31.90% is on the cheap side of its 1-year range, which means a premium-selling WTAI covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.15% (roughly $3.71 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 WTAI expiries trade a higher absolute premium for lower per-day decay. Position sizing on WTAI should anchor to the underlying notional of $40.55 per share and to the trader's directional view on WTAI etf.

WTAI covered call setup

The WTAI 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 WTAI near $40.55, the first option leg uses a $43.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WTAI 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 WTAI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$40.55	long
Sell 1	Call	$43.00	$1.00

WTAI covered call risk and reward

Net Premium / Debit: -$3,955.00
Max Profit (per contract): $345.00
Max Loss (per contract): -$3,954.00
Breakeven(s): $39.55
Risk / Reward Ratio: 0.087

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.

WTAI covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on WTAI. 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%	-$3,954.00
$8.97	-77.9%	-$3,057.53
$17.94	-55.8%	-$2,161.06
$26.90	-33.7%	-$1,264.58
$35.87	-11.5%	-$368.11
$44.83	+10.6%	+$345.00
$53.80	+32.7%	+$345.00
$62.76	+54.8%	+$345.00
$71.73	+76.9%	+$345.00
$80.69	+99.0%	+$345.00

When traders use covered call on WTAI

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

WTAI thesis for this covered call

The market-implied 1-standard-deviation range for WTAI extends from approximately $36.84 on the downside to $44.26 on the upside. A WTAI covered call collects premium on an existing long WTAI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether WTAI will breach that level within the expiration window. Current WTAI IV rank near 3.91% 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 WTAI at 31.90%. As a Financial Services name, WTAI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WTAI-specific events.

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

Frequently asked questions

What is a covered call on WTAI?: A covered call on WTAI is the covered call strategy applied to WTAI (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 WTAI etf trading near $40.55, the strikes shown on this page are snapped to the nearest listed WTAI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are WTAI 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 WTAI covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 31.90%), the computed maximum profit is $345.00 per contract and the computed maximum loss is -$3,954.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a WTAI covered call?: The breakeven for the WTAI covered call priced on this page is roughly $39.55 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 WTAI market-implied 1-standard-deviation expected move is approximately 9.15%; 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 WTAI?: Covered calls on WTAI are an income strategy run on existing WTAI 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 WTAI implied volatility affect this covered call?: WTAI ATM IV is at 31.90% with IV rank near 3.91%, 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.