How are AAOZ 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 AAOZ covered call priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 166.70%), the computed maximum profit is $513.00 per contract and the computed maximum loss is -$986.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AAOZ covered call?

The breakeven for the AAOZ covered call priced on this page is roughly $9.87 at expiration, derived from the September 29, 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 AAOZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 47.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AAOZ implied volatility affect this covered call?

Current AAOZ ATM IV is 166.70%; IV rank context is unavailable in the current snapshot.

AAOZ Covered Call Strategy

AAOZ (Investment Managers Series Trust II - Tradr 2X Short AAOI Daily ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

AAOZ is a short-term tactical tool that aims to deliver -2x the price return, less fees and expenses, for a single day of Applied Optoelectronics, Inc. (NASDAQ: AAOI) stock. AAOI engages in the design and manufacture of optical communications products. Purchasers holding shares for longer than a day will need to monitor and rebalance their position frequently to attempt to achieve the -2x multiple. Aside from the inverse exposure, the shares take on added volatility due to the lack of diversification. Purchasers should conduct their own individual stock research prior to initiating a position and trade with conviction. Due to the complexities of the product, shares tend to perform as anticipated only when the underlying shares are trending and holders are on the positive corresponding side of that trade.

AAOZ (Investment Managers Series Trust II - Tradr 2X Short AAOI Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $7.9M, a beta of 0.00 versus the broader market, a 52-week range of 6.94-51.05, average daily share volume of 1.7M, a public-listing history dating back to 2026. These structural characteristics shape how AAOZ stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.00 indicates AAOZ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a covered call on AAOZ?

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.

AAOZ snapshot

As of September 29, 2026, spot at $13.82, ATM IV 166.70%, expected move 47.79%. The covered call on AAOZ below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 80-day expiry.

Why this covered call structure on AAOZ specifically: IV rank is unavailable in the current snapshot, so regime-based timing for AAOZ is inferred from ATM IV at 166.70% alone, with a market-implied 1-standard-deviation move of approximately 47.79% (roughly $6.60 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AAOZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on AAOZ should anchor to the underlying notional of $13.82 per share and to the trader's directional view on AAOZ stock.

AAOZ covered call setup

The AAOZ covered call below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AAOZ at $13.82 on that close, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AAOZ chain at a 80-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 AAOZ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$13.82	long
Sell 1	Call	$15.00	$3.95

AAOZ covered call risk and reward

Net Premium / Debit: -$987.00
Max Profit (per contract): $513.00
Max Loss (per contract): -$986.00
Breakeven(s): $9.87
Risk / Reward Ratio: 0.520

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.

AAOZ covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on AAOZ. 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%	-$986.00
$3.06	-77.8%	-$680.54
$6.12	-55.7%	-$375.09
$9.17	-33.6%	-$69.63
$12.23	-11.5%	+$235.83
$15.28	+10.6%	+$513.00
$18.34	+32.7%	+$513.00
$21.39	+54.8%	+$513.00
$24.45	+76.9%	+$513.00
$27.50	+99.0%	+$513.00

When traders use covered call on AAOZ

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

AAOZ thesis for this covered call

The market-implied 1-standard-deviation range for AAOZ extends from approximately $7.22 on the downside to $20.42 on the upside. A AAOZ covered call collects premium on an existing long AAOZ position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether AAOZ will breach that level within the expiration window. As a Financial Services name, AAOZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AAOZ-specific events.

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

Frequently asked questions

What is a covered call on AAOZ?: A covered call on AAOZ is the covered call strategy applied to AAOZ (stock). 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 AAOZ stock at $13.82 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed AAOZ chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AAOZ 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 AAOZ covered call priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 166.70%), the computed maximum profit is $513.00 per contract and the computed maximum loss is -$986.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AAOZ covered call?: The breakeven for the AAOZ covered call priced on this page is roughly $9.87 at expiration, derived from the September 29, 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 AAOZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 47.79%; 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 AAOZ?: Covered calls on AAOZ are an income strategy run on existing AAOZ stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
How does current AAOZ implied volatility affect this covered call?: Current AAOZ ATM IV is 166.70%; IV rank context is unavailable in the current snapshot.