CBRG Covered Call Strategy
CBRG (Leverage Shares 2X Long CBRS Daily ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
This ETF allocates a minimum of 80% of its total assets to the designated Underlying Security and a range of financial instruments. These holdings are strategically combined to deliver a daily return that is double the price movement of the underlying asset, thereby achieving 200% daily leveraged exposure, in line with the fund's primary investment goal. It is important to note that this fund maintains a non-diversified portfolio.
CBRG (Leverage Shares 2X Long CBRS Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $29.9M, a beta of 0.00 versus the broader market, a 52-week range of 2.93-17.15, average daily share volume of 7.9M, a public-listing history dating back to 2026. These structural characteristics shape how CBRG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.00 indicates CBRG 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 CBRG?
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.
CBRG snapshot
As of August 14, 2026, spot at $4.59, ATM IV 192.20%, expected move 55.10%. The covered call on CBRG 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 CBRG specifically: IV rank is unavailable in the current snapshot, so regime-based timing for CBRG is inferred from ATM IV at 192.20% alone, with a market-implied 1-standard-deviation move of approximately 55.10% (roughly $2.53 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 CBRG expiries trade a higher absolute premium for lower per-day decay. Position sizing on CBRG should anchor to the underlying notional of $4.59 per share and to the trader's directional view on CBRG stock.
CBRG covered call setup
The CBRG 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 CBRG at $4.59 on that close, the first option leg uses a $5.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CBRG 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 CBRG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $4.59 | long |
| Sell 1 | Call | $5.00 | $0.90 |
CBRG covered call risk and reward
- Net Premium / Debit
- -$369.00
- Max Profit (per contract)
- $131.00
- Max Loss (per contract)
- -$368.00
- Breakeven(s)
- $3.69
- Risk / Reward Ratio
- 0.356
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.
CBRG covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on CBRG. 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 | -99.8% | -$368.00 |
| $1.02 | -77.7% | -$266.62 |
| $2.04 | -55.6% | -$165.25 |
| $3.05 | -33.5% | -$63.87 |
| $4.07 | -11.4% | +$37.51 |
| $5.08 | +10.7% | +$131.00 |
| $6.09 | +32.7% | +$131.00 |
| $7.11 | +54.8% | +$131.00 |
| $8.12 | +76.9% | +$131.00 |
| $9.13 | +99.0% | +$131.00 |
When traders use covered call on CBRG
Covered calls on CBRG are an income strategy run on existing CBRG stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
CBRG thesis for this covered call
The market-implied 1-standard-deviation range for CBRG extends from approximately $2.06 on the downside to $7.12 on the upside. A CBRG covered call collects premium on an existing long CBRG position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether CBRG will breach that level within the expiration window. As a Financial Services name, CBRG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CBRG-specific events.
CBRG 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. CBRG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CBRG alongside the broader basket even when CBRG-specific fundamentals are unchanged. Short-premium structures like a covered call on CBRG carry tail risk when realized volatility exceeds the implied move; review historical CBRG earnings reactions and macro stress periods before sizing. Always rebuild the position from current CBRG chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on CBRG?
- A covered call on CBRG is the covered call strategy applied to CBRG (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 CBRG stock at $4.59 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CBRG chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CBRG 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 CBRG covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 192.20%), the computed maximum profit is $131.00 per contract and the computed maximum loss is -$368.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CBRG covered call?
- The breakeven for the CBRG covered call priced on this page is roughly $3.69 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 CBRG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 55.10%; 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 CBRG?
- Covered calls on CBRG are an income strategy run on existing CBRG 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 CBRG implied volatility affect this covered call?
- Current CBRG ATM IV is 192.20%; IV rank context is unavailable in the current snapshot.