RAAY Covered Call Strategy
RAAY (Reckoner Yield Enhanced AAA CLO Annual ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Advisor Managed Portfolios - Reckoner Yield Enhanced AAA CLO Annual ETF is an exchange traded fund launched and managed by Reckoner Capital Management LLC. It invests in fixed income markets. The fund invests in investment-grade U.S. dollar denominated in debt tranches of collateralized loan obligations that are rated at the time of purchase, AAA or equivalent by S&P, Moody’s and Fitch. The fund invests in securities of varying maturities. It employs fundamental analysis with bottom-up security picking approach to create its portfolio. Advisor Managed Portfolios - Reckoner Yield Enhanced AAA CLO Annual ETF was formed on February 11, 2026 and is domiciled in the United States.
RAAY (Reckoner Yield Enhanced AAA CLO Annual ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $17.8M, a beta of 0.06 versus the broader market, a 52-week range of 99.56-101.5099, average daily share volume of 2K, a public-listing history dating back to 2026, approximately 985 full-time employees. These structural characteristics shape how RAAY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.06 indicates RAAY 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 RAAY?
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 RAAY snapshot
As of June 29, 2026, spot at $100.19, ATM IV 30.10%, expected move 8.63%. The covered call on RAAY 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 53-day expiry.
Why this covered call structure on RAAY specifically: IV rank is unavailable in the current snapshot, so regime-based timing for RAAY is inferred from ATM IV at 30.10% alone, with a market-implied 1-standard-deviation move of approximately 8.63% (roughly $8.65 on the underlying). The 53-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RAAY expiries trade a higher absolute premium for lower per-day decay. Position sizing on RAAY should anchor to the underlying notional of $100.19 per share and to the trader's directional view on RAAY stock.
RAAY covered call setup
The RAAY 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 RAAY near $100.19, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RAAY chain at a 53-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 RAAY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $100.19 | long |
| Sell 1 | Call | $105.00 | $0.39 |
RAAY covered call risk and reward
- Net Premium / Debit
- -$9,980.00
- Max Profit (per contract)
- $520.00
- Max Loss (per contract)
- -$9,979.00
- Breakeven(s)
- $99.80
- Risk / Reward Ratio
- 0.052
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.
RAAY covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on RAAY. 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% | -$9,979.00 |
| $22.16 | -77.9% | -$7,763.85 |
| $44.31 | -55.8% | -$5,548.71 |
| $66.46 | -33.7% | -$3,333.56 |
| $88.62 | -11.6% | -$1,118.42 |
| $110.77 | +10.6% | +$520.00 |
| $132.92 | +32.7% | +$520.00 |
| $155.07 | +54.8% | +$520.00 |
| $177.22 | +76.9% | +$520.00 |
| $199.37 | +99.0% | +$520.00 |
When traders use covered call on RAAY
Covered calls on RAAY are an income strategy run on existing RAAY stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
RAAY thesis for this covered call
The market-implied 1-standard-deviation range for RAAY extends from approximately $91.54 on the downside to $108.84 on the upside. A RAAY covered call collects premium on an existing long RAAY position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether RAAY will breach that level within the expiration window. As a Financial Services name, RAAY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RAAY-specific events.
RAAY 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. RAAY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RAAY alongside the broader basket even when RAAY-specific fundamentals are unchanged. Short-premium structures like a covered call on RAAY carry tail risk when realized volatility exceeds the implied move; review historical RAAY earnings reactions and macro stress periods before sizing. Always rebuild the position from current RAAY chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on RAAY?
- A covered call on RAAY is the covered call strategy applied to RAAY (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 RAAY stock trading near $100.19, the strikes shown on this page are snapped to the nearest listed RAAY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RAAY 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 RAAY covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 30.10%), the computed maximum profit is $520.00 per contract and the computed maximum loss is -$9,979.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RAAY covered call?
- The breakeven for the RAAY covered call priced on this page is roughly $99.80 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 RAAY market-implied 1-standard-deviation expected move is approximately 8.63%; 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 RAAY?
- Covered calls on RAAY are an income strategy run on existing RAAY 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 RAAY implied volatility affect this covered call?
- Current RAAY ATM IV is 30.10%; IV rank context is unavailable in the current snapshot.