How are BHYP 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 BHYP covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 77.10%), the computed maximum profit is $378.00 per contract and the computed maximum loss is -$2,921.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BHYP covered call?

The breakeven for the BHYP covered call priced on this page is roughly $29.22 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 BHYP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.10%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BHYP implied volatility affect this covered call?

Current BHYP ATM IV is 77.10%; IV rank context is unavailable in the current snapshot.

BHYP Covered Call Strategy

BHYP (Bitwise Hyperliquid ETF), in the Financial Services sector, (Asset Management - Cryptocurrency industry), listed on AMEX.

The Bitwise Hyperliquid ETF (BHYP) aims to replicate the daily price movements of Hyperliquid (HYPE) while simultaneously increasing its holdings through HYPE staking rewards. The fund secures direct exposure to HYPE by maintaining ownership of the cryptocurrency itself. Its Net Asset Value (NAV) is determined by referencing the CF Hyperliquid-Dollar US Settlement Price. Hyperliquid (HYPE) is recognized as a high-speed Layer 1 blockchain specifically engineered for decentralized finance (DeFi) and onchain trading, notably featuring a prominent perpetual futures exchange. The fund intends to dedicate a portion of its HYPE to staking activities, leveraging the benefits provided by these protocols, which are crucial for validating and recording blockchain transactions. HYPE that is staked functions as collateral, becoming temporarily locked within the network.

BHYP (Bitwise Hyperliquid ETF) trades in the Financial Services sector, specifically Asset Management - Cryptocurrency, with a market capitalization of approximately $2.8M, a beta of 0.00 versus the broader market, a 52-week range of 24.18-43.03, average daily share volume of 478K, a public-listing history dating back to 2026. These structural characteristics shape how BHYP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.00 indicates BHYP 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 BHYP?

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.

BHYP snapshot

As of August 14, 2026, spot at $31.12, ATM IV 77.10%, expected move 22.10%. The covered call on BHYP 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 BHYP specifically: IV rank is unavailable in the current snapshot, so regime-based timing for BHYP is inferred from ATM IV at 77.10% alone, with a market-implied 1-standard-deviation move of approximately 22.10% (roughly $6.88 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 BHYP expiries trade a higher absolute premium for lower per-day decay. Position sizing on BHYP should anchor to the underlying notional of $31.12 per share and to the trader's directional view on BHYP stock.

BHYP covered call setup

The BHYP 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 BHYP at $31.12 on that close, the first option leg uses a $33.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BHYP 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 BHYP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$31.12	long
Sell 1	Call	$33.00	$1.90

BHYP covered call risk and reward

Net Premium / Debit: -$2,922.00
Max Profit (per contract): $378.00
Max Loss (per contract): -$2,921.00
Breakeven(s): $29.22
Risk / Reward Ratio: 0.129

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.

BHYP covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on BHYP. 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	-100.0%	-$2,921.00
$6.89	-77.9%	-$2,233.03
$13.77	-55.8%	-$1,545.06
$20.65	-33.6%	-$857.09
$27.53	-11.5%	-$169.12
$34.41	+10.6%	+$378.00
$41.29	+32.7%	+$378.00
$48.17	+54.8%	+$378.00
$55.05	+76.9%	+$378.00
$61.93	+99.0%	+$378.00

When traders use covered call on BHYP

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

BHYP thesis for this covered call

The market-implied 1-standard-deviation range for BHYP extends from approximately $24.24 on the downside to $38.00 on the upside. A BHYP covered call collects premium on an existing long BHYP position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether BHYP will breach that level within the expiration window. As a Financial Services name, BHYP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BHYP-specific events.

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

Frequently asked questions

What is a covered call on BHYP?: A covered call on BHYP is the covered call strategy applied to BHYP (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 BHYP stock at $31.12 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BHYP chain strike and the premiums come straight from that session's bid/ask midpoint.
How are BHYP 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 BHYP covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 77.10%), the computed maximum profit is $378.00 per contract and the computed maximum loss is -$2,921.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BHYP covered call?: The breakeven for the BHYP covered call priced on this page is roughly $29.22 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 BHYP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.10%; 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 BHYP?: Covered calls on BHYP are an income strategy run on existing BHYP 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 BHYP implied volatility affect this covered call?: Current BHYP ATM IV is 77.10%; IV rank context is unavailable in the current snapshot.