How are THYP 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 THYP covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 78.50%), the computed maximum profit is $411.00 per contract and the computed maximum loss is -$2,988.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a THYP covered call?

The breakeven for the THYP covered call priced on this page is roughly $29.89 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 THYP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current THYP implied volatility affect this covered call?

Current THYP ATM IV is 78.50%; IV rank context is unavailable in the current snapshot.

THYP Covered Call Strategy

THYP (21Shares Hyperliquid ETF), in the Financial Services sector, (Asset Management - Cryptocurrency industry), listed on NASDAQ.

The 21Shares Hyperliquid ETF, trading under the symbol THYP, is a passively managed fund designed to provide investors with indirect access to the HYPE digital currency. The valuation of its holdings is pegged to the FTSE Hyperliquid Index, which serves as a daily, U.S. dollar-denominated benchmark for HYPE's price. This index's reference rate is derived from aggregating the executed trade volumes across various Constituent Exchanges (CEXs). Additionally, an estimated intra-day value per share, also tied to the FTSE Hyperliquid Index, is updated and disseminated every 15 seconds throughout standard exchange hours, specifically from 9:30 AM to 4:00 PM Eastern Time. HYPE itself is a digital currency that can be utilized for transactions involving goods and services. On the Hyperliquid Network, it powers high-performance digital asset trading by means of an on-chain central limit order book.

THYP (21Shares Hyperliquid ETF) trades in the Financial Services sector, specifically Asset Management - Cryptocurrency, with a market capitalization of approximately $10.8M, a beta of -0.29 versus the broader market, a 52-week range of 22.54-44.12, average daily share volume of 239K, a public-listing history dating back to 2026. These structural characteristics shape how THYP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.29 indicates THYP has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. THYP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on THYP?

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.

THYP snapshot

As of August 14, 2026, spot at $32.09, ATM IV 78.50%, expected move 22.51%. The covered call on THYP 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 THYP specifically: IV rank is unavailable in the current snapshot, so regime-based timing for THYP is inferred from ATM IV at 78.50% alone, with a market-implied 1-standard-deviation move of approximately 22.51% (roughly $7.22 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 THYP expiries trade a higher absolute premium for lower per-day decay. Position sizing on THYP should anchor to the underlying notional of $32.09 per share and to the trader's directional view on THYP stock.

THYP covered call setup

The THYP 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 THYP at $32.09 on that close, the first option leg uses a $34.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed THYP 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 THYP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$32.09	long
Sell 1	Call	$34.00	$2.20

THYP covered call risk and reward

Net Premium / Debit: -$2,989.00
Max Profit (per contract): $411.00
Max Loss (per contract): -$2,988.00
Breakeven(s): $29.89
Risk / Reward Ratio: 0.138

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.

THYP covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on THYP. 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%	-$2,988.00
$7.10	-77.9%	-$2,278.58
$14.20	-55.8%	-$1,569.17
$21.29	-33.6%	-$859.75
$28.39	-11.5%	-$150.33
$35.48	+10.6%	+$411.00
$42.58	+32.7%	+$411.00
$49.67	+54.8%	+$411.00
$56.76	+76.9%	+$411.00
$63.86	+99.0%	+$411.00

When traders use covered call on THYP

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

THYP thesis for this covered call

The market-implied 1-standard-deviation range for THYP extends from approximately $24.87 on the downside to $39.31 on the upside. A THYP covered call collects premium on an existing long THYP position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether THYP will breach that level within the expiration window. As a Financial Services name, THYP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to THYP-specific events.

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

Frequently asked questions

What is a covered call on THYP?: A covered call on THYP is the covered call strategy applied to THYP (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 THYP stock at $32.09 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed THYP chain strike and the premiums come straight from that session's bid/ask midpoint.
How are THYP 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 THYP covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 78.50%), the computed maximum profit is $411.00 per contract and the computed maximum loss is -$2,988.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a THYP covered call?: The breakeven for the THYP covered call priced on this page is roughly $29.89 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 THYP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.51%; 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 THYP?: Covered calls on THYP are an income strategy run on existing THYP 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 THYP implied volatility affect this covered call?: Current THYP ATM IV is 78.50%; IV rank context is unavailable in the current snapshot.