How are WULF 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 WULF covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 84.44%), the computed maximum profit is $197.00 per contract and the computed maximum loss is -$1,602.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a WULF covered call?

The breakeven for the WULF covered call priced on this page is roughly $16.03 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 WULF market-implied 1-standard-deviation expected move in the same options snapshot is approximately 24.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current WULF implied volatility affect this covered call?

WULF ATM IV is at 84.44% with IV rank near 11.03%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

WULF Covered Call Strategy

WULF (TeraWulf Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.

TeraWulf Inc., together with its subsidiaries, owns, develops, operates digital infrastructure in the United States. It also develops and operates bitcoin mining facilities for bitcoin mining and high-performance computing workloads, leveraging clean, cost-effective, and reliable energy. The company was founded in 2021 and is headquartered in Easton, Maryland.

WULF (TeraWulf Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $8.52B, a beta of 4.29 versus the broader market, a 52-week range of 6.74-29.84, average daily share volume of 32.2M, a public-listing history dating back to 1994, approximately 141 full-time employees. These structural characteristics shape how WULF stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 4.29 indicates WULF has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. WULF pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on WULF?

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.

WULF snapshot

As of August 14, 2026, spot at $17.38, ATM IV 84.44%, IV rank 11.03%, expected move 24.21%. The covered call on WULF 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 28-day expiry.

Why this covered call structure on WULF specifically: WULF IV at 84.44% is on the cheap side of its 1-year range, which means a premium-selling WULF covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 24.21% (roughly $4.21 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WULF expiries trade a higher absolute premium for lower per-day decay. Position sizing on WULF should anchor to the underlying notional of $17.38 per share and to the trader's directional view on WULF stock.

WULF covered call setup

The WULF 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 WULF at $17.38 on that close, the first option leg uses a $18.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WULF chain at a 28-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 WULF shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$17.38	long
Sell 1	Call	$18.00	$1.35

WULF covered call risk and reward

Net Premium / Debit: -$1,603.00
Max Profit (per contract): $197.00
Max Loss (per contract): -$1,602.00
Breakeven(s): $16.03
Risk / Reward Ratio: 0.123

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.

WULF covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on WULF. 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%	-$1,602.00
$3.85	-77.8%	-$1,217.83
$7.69	-55.7%	-$833.66
$11.54	-33.6%	-$449.49
$15.38	-11.5%	-$65.32
$19.22	+10.6%	+$197.00
$23.06	+32.7%	+$197.00
$26.90	+54.8%	+$197.00
$30.74	+76.9%	+$197.00
$34.59	+99.0%	+$197.00

When traders use covered call on WULF

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

WULF thesis for this covered call

The market-implied 1-standard-deviation range for WULF extends from approximately $13.17 on the downside to $21.59 on the upside. A WULF covered call collects premium on an existing long WULF position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether WULF will breach that level within the expiration window. Current WULF IV rank near 11.03% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on WULF at 84.44%. As a Technology name, WULF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WULF-specific events.

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

Frequently asked questions

What is a covered call on WULF?: A covered call on WULF is the covered call strategy applied to WULF (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 WULF stock at $17.38 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed WULF chain strike and the premiums come straight from that session's bid/ask midpoint.
How are WULF 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 WULF covered call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 84.44%), the computed maximum profit is $197.00 per contract and the computed maximum loss is -$1,602.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a WULF covered call?: The breakeven for the WULF covered call priced on this page is roughly $16.03 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 WULF market-implied 1-standard-deviation expected move in the same options snapshot is approximately 24.21%; 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 WULF?: Covered calls on WULF are an income strategy run on existing WULF 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 WULF implied volatility affect this covered call?: WULF ATM IV is at 84.44% with IV rank near 11.03%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.