How are YBTC 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 YBTC covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 493.40%), the computed maximum profit is $108.00 per contract and the computed maximum loss is -$1,691.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a YBTC covered call?

The breakeven for the YBTC covered call priced on this page is roughly $16.92 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 YBTC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 141.45%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current YBTC implied volatility affect this covered call?

YBTC ATM IV is at 493.40% with IV rank near 99.90%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

YBTC Covered Call Strategy

YBTC (Roundhill Investments - Bitcoin Covered Call Strategy ETF), in the Financial Services sector, (Asset Management - Cryptocurrency industry), listed on CBOE.

The Roundhill Bitcoin Covered Call Strategy ETF (YBTC) is notable as the pioneering U.S.-listed ETF to offer a bitcoin covered call strategy. This actively managed fund provides access to bitcoin through investments in exchange-traded products (ETPs) that hold the cryptocurrency directly, albeit with an imposed limit. A core objective of YBTC is to generate potential current income for its investors.

YBTC (Roundhill Investments - Bitcoin Covered Call Strategy ETF) trades in the Financial Services sector, specifically Asset Management - Cryptocurrency, with a market capitalization of approximately $152.9M, a beta of 1.04 versus the broader market, a 52-week range of 16.3-48.18, average daily share volume of 88K, a public-listing history dating back to 2024. These structural characteristics shape how YBTC etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.04 places YBTC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. YBTC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on YBTC?

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.

YBTC snapshot

As of August 14, 2026, spot at $17.27, ATM IV 493.40%, IV rank 99.90%, expected move 141.45%. The covered call on YBTC 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 YBTC specifically: YBTC IV at 493.40% is rich versus its 1-year range, which favors premium-selling structures like a YBTC covered call, with a market-implied 1-standard-deviation move of approximately 141.45% (roughly $24.43 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 YBTC expiries trade a higher absolute premium for lower per-day decay. Position sizing on YBTC should anchor to the underlying notional of $17.27 per share and to the trader's directional view on YBTC etf.

YBTC covered call setup

The YBTC 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 YBTC at $17.27 on that close, the first option leg uses a $18.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed YBTC 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 YBTC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$17.27	long
Sell 1	Call	$18.00	$0.35

YBTC covered call risk and reward

Net Premium / Debit: -$1,692.00
Max Profit (per contract): $108.00
Max Loss (per contract): -$1,691.00
Breakeven(s): $16.92
Risk / Reward Ratio: 0.064

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.

YBTC covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on YBTC. 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	-99.9%	-$1,691.00
$3.83	-77.8%	-$1,309.26
$7.64	-55.7%	-$927.52
$11.46	-33.6%	-$545.78
$15.28	-11.5%	-$164.05
$19.10	+10.6%	+$108.00
$22.91	+32.7%	+$108.00
$26.73	+54.8%	+$108.00
$30.55	+76.9%	+$108.00
$34.37	+99.0%	+$108.00

When traders use covered call on YBTC

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

YBTC thesis for this covered call

The market-implied 1-standard-deviation range for YBTC extends from approximately $-7.16 on the downside to $41.70 on the upside. A YBTC covered call collects premium on an existing long YBTC position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether YBTC will breach that level within the expiration window. Current YBTC IV rank near 99.90% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on YBTC at 493.40%. As a Financial Services name, YBTC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to YBTC-specific events.

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

Frequently asked questions

What is a covered call on YBTC?: A covered call on YBTC is the covered call strategy applied to YBTC (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 YBTC etf at $17.27 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed YBTC chain strike and the premiums come straight from that session's bid/ask midpoint.
How are YBTC 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 YBTC covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 493.40%), the computed maximum profit is $108.00 per contract and the computed maximum loss is -$1,691.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a YBTC covered call?: The breakeven for the YBTC covered call priced on this page is roughly $16.92 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 YBTC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 141.45%; 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 YBTC?: Covered calls on YBTC are an income strategy run on existing YBTC 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 YBTC implied volatility affect this covered call?: YBTC ATM IV is at 493.40% with IV rank near 99.90%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.