RAM Covered Call Strategy
RAM (Roundhill T-REX 2X Long DRAM Daily Target ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
RAM seeking daily leveraged exposure is very different from most other exchange-traded funds. As a result, RAM may be riskier than alternatives that do not use leverage. The ETF's investment objective is to magnify (200%) the daily performance of the shares of the Issuers own Memory ETF, ticker: DRAM. The return for investors that invest for periods longer or shorter than a trading day should not be expected to be 200% of the performance of DRAM for the period. The return of the Fund for a period longer than a trading day will be the result of each trading day's compounded return over the period, which will very likely differ from 200% of the return of DRAM for that period. Longer holding periods, higher volatility of DRAM, and leverage increase the impact of compounding on an investor's returns.
RAM (Roundhill T-REX 2X Long DRAM Daily Target ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $457.5M, a beta of 0.00 versus the broader market, a 52-week range of 8.29-33.11, average daily share volume of 16.7M, a public-listing history dating back to 2026. These structural characteristics shape how RAM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.00 indicates RAM 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 RAM?
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.
RAM snapshot
As of August 14, 2026, spot at $13.11, ATM IV 132.50%, IV rank 51.14%, expected move 37.99%. The covered call on RAM 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 RAM specifically: RAM IV at 132.50% is mid-range versus its 1-year history, so the credit collected on a RAM covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 37.99% (roughly $4.98 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 RAM expiries trade a higher absolute premium for lower per-day decay. Position sizing on RAM should anchor to the underlying notional of $13.11 per share and to the trader's directional view on RAM stock.
RAM covered call setup
The RAM 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 RAM at $13.11 on that close, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RAM 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 RAM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $13.11 | long |
| Sell 1 | Call | $14.00 | $1.78 |
RAM covered call risk and reward
- Net Premium / Debit
- -$1,133.50
- Max Profit (per contract)
- $266.50
- Max Loss (per contract)
- -$1,132.50
- Breakeven(s)
- $11.33
- Risk / Reward Ratio
- 0.235
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.
RAM covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on RAM. 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 | -99.9% | -$1,132.50 |
| $2.91 | -77.8% | -$842.74 |
| $5.81 | -55.7% | -$552.98 |
| $8.70 | -33.6% | -$263.22 |
| $11.60 | -11.5% | +$26.54 |
| $14.50 | +10.6% | +$266.50 |
| $17.40 | +32.7% | +$266.50 |
| $20.29 | +54.8% | +$266.50 |
| $23.19 | +76.9% | +$266.50 |
| $26.09 | +99.0% | +$266.50 |
When traders use covered call on RAM
Covered calls on RAM are an income strategy run on existing RAM stock positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
RAM thesis for this covered call
The market-implied 1-standard-deviation range for RAM extends from approximately $8.13 on the downside to $18.09 on the upside. A RAM covered call collects premium on an existing long RAM position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether RAM will breach that level within the expiration window. Current RAM IV rank near 51.14% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on RAM should anchor more to the directional view and the expected-move geometry. As a Financial Services name, RAM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RAM-specific events.
RAM 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. RAM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RAM alongside the broader basket even when RAM-specific fundamentals are unchanged. Short-premium structures like a covered call on RAM carry tail risk when realized volatility exceeds the implied move; review historical RAM earnings reactions and macro stress periods before sizing. Always rebuild the position from current RAM chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on RAM?
- A covered call on RAM is the covered call strategy applied to RAM (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 RAM stock at $13.11 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed RAM chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are RAM 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 RAM covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 132.50%), the computed maximum profit is $266.50 per contract and the computed maximum loss is -$1,132.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RAM covered call?
- The breakeven for the RAM covered call priced on this page is roughly $11.33 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 RAM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 37.99%; 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 RAM?
- Covered calls on RAM are an income strategy run on existing RAM 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 RAM implied volatility affect this covered call?
- RAM ATM IV is at 132.50% with IV rank near 51.14%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.