YINN Covered Call Strategy
YINN (Direxion Daily FTSE China Bull 3X ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Direxion Daily FTSE China Bull and Bear 3X ETFs seek daily investment results, before fees and expenses, of 300%, or 300% of the inverse (or opposite), of the performance of the FTSE China 50 Index. There is no guarantee the funds will achieve their stated investment objectives.
YINN (Direxion Daily FTSE China Bull 3X ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $823.1M, a beta of 1.16 versus the broader market, a 52-week range of 29.93-57.71, average daily share volume of 2.2M, a public-listing history dating back to 2009. These structural characteristics shape how YINN etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.16 places YINN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. YINN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on YINN?
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 YINN snapshot
As of May 15, 2026, spot at $32.89, ATM IV 68.70%, IV rank 42.24%, expected move 19.70%. The covered call on YINN 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 28-day expiry.
Why this covered call structure on YINN specifically: YINN IV at 68.70% is mid-range versus its 1-year history, so the credit collected on a YINN covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 19.70% (roughly $6.48 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated YINN expiries trade a higher absolute premium for lower per-day decay. Position sizing on YINN should anchor to the underlying notional of $32.89 per share and to the trader's directional view on YINN etf.
YINN covered call setup
The YINN 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 YINN near $32.89, the first option leg uses a $34.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed YINN chain at a 28-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 YINN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $32.89 | long |
| Sell 1 | Call | $34.50 | $2.11 |
YINN covered call risk and reward
- Net Premium / Debit
- -$3,078.50
- Max Profit (per contract)
- $371.50
- Max Loss (per contract)
- -$3,077.50
- Breakeven(s)
- $30.79
- Risk / Reward Ratio
- 0.121
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.
YINN covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on YINN. 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% | -$3,077.50 |
| $7.28 | -77.9% | -$2,350.39 |
| $14.55 | -55.8% | -$1,623.29 |
| $21.82 | -33.6% | -$896.18 |
| $29.09 | -11.5% | -$169.08 |
| $36.37 | +10.6% | +$371.50 |
| $43.64 | +32.7% | +$371.50 |
| $50.91 | +54.8% | +$371.50 |
| $58.18 | +76.9% | +$371.50 |
| $65.45 | +99.0% | +$371.50 |
When traders use covered call on YINN
Covered calls on YINN are an income strategy run on existing YINN etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
YINN thesis for this covered call
The market-implied 1-standard-deviation range for YINN extends from approximately $26.41 on the downside to $39.37 on the upside. A YINN covered call collects premium on an existing long YINN position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether YINN will breach that level within the expiration window. Current YINN IV rank near 42.24% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on YINN should anchor more to the directional view and the expected-move geometry. As a Financial Services name, YINN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to YINN-specific events.
YINN 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. YINN positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move YINN alongside the broader basket even when YINN-specific fundamentals are unchanged. Short-premium structures like a covered call on YINN carry tail risk when realized volatility exceeds the implied move; review historical YINN earnings reactions and macro stress periods before sizing. Always rebuild the position from current YINN chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on YINN?
- A covered call on YINN is the covered call strategy applied to YINN (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 YINN etf trading near $32.89, the strikes shown on this page are snapped to the nearest listed YINN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are YINN 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 YINN covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 68.70%), the computed maximum profit is $371.50 per contract and the computed maximum loss is -$3,077.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a YINN covered call?
- The breakeven for the YINN covered call priced on this page is roughly $30.79 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 YINN market-implied 1-standard-deviation expected move is approximately 19.70%; 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 YINN?
- Covered calls on YINN are an income strategy run on existing YINN 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 YINN implied volatility affect this covered call?
- YINN ATM IV is at 68.70% with IV rank near 42.24%, 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.