How are YMAX 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 YMAX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 19.50%), the computed maximum profit is $72.00 per contract and the computed maximum loss is -$827.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a YMAX covered call?

The breakeven for the YMAX covered call priced on this page is roughly $8.28 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 YMAX market-implied 1-standard-deviation expected move is approximately 5.59%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current YMAX implied volatility affect this covered call?

YMAX ATM IV is at 19.50% with IV rank near 6.32%, 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.

YMAX Covered Call Strategy

YMAX (YieldMax Universe Fund of Option Income ETFs), in the Financial Services sector, (Asset Management - Income industry), listed on AMEX.

The YieldMax Universe fund of Option Income ETFs (YMAX) is an actively managed exchange-trade fund that seeks to generate current income. As a “fund-of-fund”, YMAX invests in the full suite of YieldMax option income ETFs. Each underlying YieldMax ETF seeks to generate income while offering exposure to the share price of a specific company or ETF.

YMAX (YieldMax Universe Fund of Option Income ETFs) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $492.0M, a beta of 1.24 versus the broader market, a 52-week range of 7.47-14.114, average daily share volume of 1.8M, a public-listing history dating back to 2024. These structural characteristics shape how YMAX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.24 places YMAX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. YMAX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on YMAX?

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 YMAX snapshot

As of May 15, 2026, spot at $8.48, ATM IV 19.50%, IV rank 6.32%, expected move 5.59%. The covered call on YMAX 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 63-day expiry.

Why this covered call structure on YMAX specifically: YMAX IV at 19.50% is on the cheap side of its 1-year range, which means a premium-selling YMAX covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 5.59% (roughly $0.47 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated YMAX expiries trade a higher absolute premium for lower per-day decay. Position sizing on YMAX should anchor to the underlying notional of $8.48 per share and to the trader's directional view on YMAX etf.

YMAX covered call setup

The YMAX 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 YMAX near $8.48, the first option leg uses a $9.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed YMAX chain at a 63-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 YMAX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$8.48	long
Sell 1	Call	$9.00	$0.20

YMAX covered call risk and reward

Net Premium / Debit: -$828.00
Max Profit (per contract): $72.00
Max Loss (per contract): -$827.00
Breakeven(s): $8.28
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.

YMAX covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on YMAX. 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	-99.9%	-$827.00
$1.88	-77.8%	-$639.61
$3.76	-55.7%	-$452.23
$5.63	-33.6%	-$264.84
$7.51	-11.5%	-$77.45
$9.38	+10.6%	+$72.00
$11.25	+32.7%	+$72.00
$13.13	+54.8%	+$72.00
$15.00	+76.9%	+$72.00
$16.87	+99.0%	+$72.00

When traders use covered call on YMAX

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

YMAX thesis for this covered call

The market-implied 1-standard-deviation range for YMAX extends from approximately $8.01 on the downside to $8.95 on the upside. A YMAX covered call collects premium on an existing long YMAX position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether YMAX will breach that level within the expiration window. Current YMAX IV rank near 6.32% 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 YMAX at 19.50%. As a Financial Services name, YMAX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to YMAX-specific events.

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

Frequently asked questions

What is a covered call on YMAX?: A covered call on YMAX is the covered call strategy applied to YMAX (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 YMAX etf trading near $8.48, the strikes shown on this page are snapped to the nearest listed YMAX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are YMAX 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 YMAX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 19.50%), the computed maximum profit is $72.00 per contract and the computed maximum loss is -$827.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a YMAX covered call?: The breakeven for the YMAX covered call priced on this page is roughly $8.28 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 YMAX market-implied 1-standard-deviation expected move is approximately 5.59%; 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 YMAX?: Covered calls on YMAX are an income strategy run on existing YMAX 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 YMAX implied volatility affect this covered call?: YMAX ATM IV is at 19.50% with IV rank near 6.32%, 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.