How are RCLY 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 RCLY covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 15.10%), the computed maximum profit is $524.00 per contract and the computed maximum loss is -$10,075.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RCLY covered call?

The breakeven for the RCLY covered call priced on this page is roughly $100.76 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 RCLY market-implied 1-standard-deviation expected move is approximately 4.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RCLY implied volatility affect this covered call?

Current RCLY ATM IV is 15.10%; IV rank context is unavailable in the current snapshot.

RCLY Covered Call Strategy

RCLY (Reckoner BBB-B CLO Annual ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

RCLY is a feeder fund that provides leveraged exposure to CLO tranches rated as BBB+ to B- by investing exclusively in its master fund, the Reckoner BBB-B CLO ETF (RCLO). The underlying ETF, RCLO, primarily focuses on floating-rate CLOs within its target rating range but may invest up to 70% in CLOs rated BB+ or lower, and up to 10% in CLOs rated above BBB+. Investments could be of any maturity, purchased from both primary and secondary markets. It applies a bottom-up approach to select investments by reviewing documentation on an issuers management, individual CLO structure and collateral, ability to meet obligations, cash flow, and trading frequency. RCLY makes a single annual dividend payment, offering tax efficiency, compounding potential, and the opportunity to maximize long-term total return.

RCLY (Reckoner BBB-B CLO Annual ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $12.6M, a beta of 0.07 versus the broader market, a 52-week range of 96.37-100.94, average daily share volume of 0K, a public-listing history dating back to 2026, approximately 320 full-time employees. These structural characteristics shape how RCLY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.07 indicates RCLY 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 RCLY?

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 RCLY snapshot

As of June 29, 2026, spot at $101.14, ATM IV 15.10%, expected move 4.33%. The covered call on RCLY 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 RCLY specifically: IV rank is unavailable in the current snapshot, so regime-based timing for RCLY is inferred from ATM IV at 15.10% alone, with a market-implied 1-standard-deviation move of approximately 4.33% (roughly $4.38 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 RCLY expiries trade a higher absolute premium for lower per-day decay. Position sizing on RCLY should anchor to the underlying notional of $101.14 per share and to the trader's directional view on RCLY stock.

RCLY covered call setup

The RCLY 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 RCLY near $101.14, the first option leg uses a $106.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RCLY 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 RCLY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$101.14	long
Sell 1	Call	$106.00	$0.38

RCLY covered call risk and reward

Net Premium / Debit: -$10,076.00
Max Profit (per contract): $524.00
Max Loss (per contract): -$10,075.00
Breakeven(s): $100.76
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.

RCLY covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on RCLY. 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%	-$10,075.00
$22.37	-77.9%	-$7,838.85
$44.73	-55.8%	-$5,602.70
$67.09	-33.7%	-$3,366.55
$89.46	-11.6%	-$1,130.40
$111.82	+10.6%	+$524.00
$134.18	+32.7%	+$524.00
$156.54	+54.8%	+$524.00
$178.90	+76.9%	+$524.00
$201.26	+99.0%	+$524.00

When traders use covered call on RCLY

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

RCLY thesis for this covered call

The market-implied 1-standard-deviation range for RCLY extends from approximately $96.76 on the downside to $105.52 on the upside. A RCLY covered call collects premium on an existing long RCLY position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether RCLY will breach that level within the expiration window. As a Financial Services name, RCLY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RCLY-specific events.

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

Frequently asked questions

What is a covered call on RCLY?: A covered call on RCLY is the covered call strategy applied to RCLY (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 RCLY stock trading near $101.14, the strikes shown on this page are snapped to the nearest listed RCLY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RCLY 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 RCLY covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 15.10%), the computed maximum profit is $524.00 per contract and the computed maximum loss is -$10,075.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RCLY covered call?: The breakeven for the RCLY covered call priced on this page is roughly $100.76 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 RCLY market-implied 1-standard-deviation expected move is approximately 4.33%; 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 RCLY?: Covered calls on RCLY are an income strategy run on existing RCLY 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 RCLY implied volatility affect this covered call?: Current RCLY ATM IV is 15.10%; IV rank context is unavailable in the current snapshot.