COHX Covered Call Strategy
COHX (Investment Managers Series Trust II - Tradr 2X Long COHR Daily ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
COHX uses swap agreements and listed call options to make bullish bets on the share price of Coherent Corp. (NYSE: COHR). The fund may also invest directly in COHR. Coherent Corp. develops, manufactures, and markets engineered materials, opto-electronic components and devices, and lasers for use in the industrial, communications, electronics, and instrumentation markets. It operates through the following segments: Networking, Materials, and Lasers. The fund seeks to maintain daily leveraged exposure equivalent to 200% of the daily percentage change in COHR price through daily rebalancing. Returns may deviate from the expected 2x if held for longer than a single day due to factors such as volatility and compounding effects.
COHX (Investment Managers Series Trust II - Tradr 2X Long COHR Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $110.1M, a beta of 6.62 versus the broader market, a 52-week range of 16.1-75.64, average daily share volume of 984K, a public-listing history dating back to 2026. These structural characteristics shape how COHX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 6.62 indicates COHX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a covered call on COHX?
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.
COHX snapshot
As of September 29, 2026, spot at $22.98, ATM IV 149.60%, IV rank 13.95%, expected move 42.89%. The covered call on COHX 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 17-day expiry.
Why this covered call structure on COHX specifically: COHX IV at 149.60% is on the cheap side of its 1-year range, which means a premium-selling COHX covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 42.89% (roughly $9.86 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated COHX expiries trade a higher absolute premium for lower per-day decay. Position sizing on COHX should anchor to the underlying notional of $22.98 per share and to the trader's directional view on COHX stock.
COHX covered call setup
The COHX 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 COHX at $22.98 on that close, the first option leg uses a $24.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed COHX chain at a 17-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 COHX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $22.98 | long |
| Sell 1 | Call | $24.00 | $2.35 |
COHX covered call risk and reward
- Net Premium / Debit
- -$2,063.00
- Max Profit (per contract)
- $337.00
- Max Loss (per contract)
- -$2,062.00
- Breakeven(s)
- $20.63
- Risk / Reward Ratio
- 0.163
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.
COHX covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on COHX. 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% | -$2,062.00 |
| $5.09 | -77.9% | -$1,554.01 |
| $10.17 | -55.7% | -$1,046.02 |
| $15.25 | -33.6% | -$538.03 |
| $20.33 | -11.5% | -$30.04 |
| $25.41 | +10.6% | +$337.00 |
| $30.49 | +32.7% | +$337.00 |
| $35.57 | +54.8% | +$337.00 |
| $40.65 | +76.9% | +$337.00 |
| $45.73 | +99.0% | +$337.00 |
When traders use covered call on COHX
Covered calls on COHX are an income strategy run on existing COHX stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
COHX thesis for this covered call
The market-implied 1-standard-deviation range for COHX extends from approximately $13.12 on the downside to $32.84 on the upside. A COHX covered call collects premium on an existing long COHX position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether COHX will breach that level within the expiration window. Current COHX IV rank near 13.95% 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 COHX at 149.60%. As a Financial Services name, COHX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to COHX-specific events.
COHX 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. COHX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move COHX alongside the broader basket even when COHX-specific fundamentals are unchanged. Short-premium structures like a covered call on COHX carry tail risk when realized volatility exceeds the implied move; review historical COHX earnings reactions and macro stress periods before sizing. Always rebuild the position from current COHX chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on COHX?
- A covered call on COHX is the covered call strategy applied to COHX (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 COHX stock at $22.98 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed COHX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are COHX 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 COHX covered call priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 149.60%), the computed maximum profit is $337.00 per contract and the computed maximum loss is -$2,062.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a COHX covered call?
- The breakeven for the COHX covered call priced on this page is roughly $20.63 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 COHX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 42.89%; 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 COHX?
- Covered calls on COHX are an income strategy run on existing COHX 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 COHX implied volatility affect this covered call?
- COHX ATM IV is at 149.60% with IV rank near 13.95%, 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.