How are SKHU 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 SKHU covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 149.40%), the computed maximum profit is $417.50 per contract and the computed maximum loss is -$1,581.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SKHU covered call?

The breakeven for the SKHU covered call priced on this page is roughly $15.83 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 SKHU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 42.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SKHU implied volatility affect this covered call?

Current SKHU ATM IV is 149.40%; IV rank context is unavailable in the current snapshot.

SKHU Covered Call Strategy

SKHU (Proshares Ultra Sk Hynix), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.

ProShares Ultra SK hynix seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the American Depositary Receipt (ADR) of SK hynix Inc., a leading South Korean memory semiconductor manufacturer and a major supplier of high bandwidth memory (HBM) used in AI accelerators alongside Nvidia chips. The Fund achieves its exposure primarily through swap agreements and shares of SKHY, resetting daily. Given the extraordinarily high cost of obtaining leveraged foreign-ADR exposure, the Fund may underperform even when SK hynix's underlying share price rises, and returns over periods longer than a day can differ significantly from the 2x daily target due to compounding.

SKHU (Proshares Ultra Sk Hynix) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $74.0M, a beta of 0.00 versus the broader market, a 52-week range of 11.6-31.03, average daily share volume of 2.5M, a public-listing history dating back to 2026. These structural characteristics shape how SKHU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.00 indicates SKHU 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 SKHU?

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.

SKHU snapshot

As of August 14, 2026, spot at $18.95, ATM IV 149.40%, expected move 42.83%. The covered call on SKHU 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 SKHU specifically: IV rank is unavailable in the current snapshot, so regime-based timing for SKHU is inferred from ATM IV at 149.40% alone, with a market-implied 1-standard-deviation move of approximately 42.83% (roughly $8.12 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 SKHU expiries trade a higher absolute premium for lower per-day decay. Position sizing on SKHU should anchor to the underlying notional of $18.95 per share and to the trader's directional view on SKHU stock.

SKHU covered call setup

The SKHU 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 SKHU at $18.95 on that close, the first option leg uses a $20.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SKHU 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 SKHU shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$18.95	long
Sell 1	Call	$20.00	$3.13

SKHU covered call risk and reward

Net Premium / Debit: -$1,582.50
Max Profit (per contract): $417.50
Max Loss (per contract): -$1,581.50
Breakeven(s): $15.83
Risk / Reward Ratio: 0.264

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.

SKHU covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on SKHU. 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	-99.9%	-$1,581.50
$4.20	-77.8%	-$1,162.62
$8.39	-55.7%	-$743.73
$12.58	-33.6%	-$324.85
$16.77	-11.5%	+$94.04
$20.95	+10.6%	+$417.50
$25.14	+32.7%	+$417.50
$29.33	+54.8%	+$417.50
$33.52	+76.9%	+$417.50
$37.71	+99.0%	+$417.50

When traders use covered call on SKHU

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

SKHU thesis for this covered call

The market-implied 1-standard-deviation range for SKHU extends from approximately $10.83 on the downside to $27.07 on the upside. A SKHU covered call collects premium on an existing long SKHU position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether SKHU will breach that level within the expiration window. As a Financial Services name, SKHU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SKHU-specific events.

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

Frequently asked questions

What is a covered call on SKHU?: A covered call on SKHU is the covered call strategy applied to SKHU (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 SKHU stock at $18.95 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SKHU chain strike and the premiums come straight from that session's bid/ask midpoint.
How are SKHU 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 SKHU covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 149.40%), the computed maximum profit is $417.50 per contract and the computed maximum loss is -$1,581.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SKHU covered call?: The breakeven for the SKHU covered call priced on this page is roughly $15.83 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 SKHU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 42.83%; 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 SKHU?: Covered calls on SKHU are an income strategy run on existing SKHU 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 SKHU implied volatility affect this covered call?: Current SKHU ATM IV is 149.40%; IV rank context is unavailable in the current snapshot.