REMX Covered Call Strategy
REMX (VanEck Rare Earth and Strategic Metals ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
VanEck Rare Earth and Strategic Metals ETF (REMX) seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MVISGlobal Rare Earth/Strategic Metals Index (MVREMXTR), which is intended to track the overall performance of companies involved in producing, refining, and recycling of rare earth and strategic metals and minerals.
REMX (VanEck Rare Earth and Strategic Metals ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.38B, a beta of 1.37 versus the broader market, a 52-week range of 35.72-111.55, average daily share volume of 1.2M, a public-listing history dating back to 2010. These structural characteristics shape how REMX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.37 indicates REMX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. REMX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a covered call on REMX?
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 REMX snapshot
As of May 15, 2026, spot at $96.55, ATM IV 50.80%, IV rank 55.30%, expected move 14.56%. The covered call on REMX 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 34-day expiry.
Why this covered call structure on REMX specifically: REMX IV at 50.80% is mid-range versus its 1-year history, so the credit collected on a REMX covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 14.56% (roughly $14.06 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated REMX expiries trade a higher absolute premium for lower per-day decay. Position sizing on REMX should anchor to the underlying notional of $96.55 per share and to the trader's directional view on REMX etf.
REMX covered call setup
The REMX 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 REMX near $96.55, the first option leg uses a $101.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed REMX chain at a 34-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 REMX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $96.55 | long |
| Sell 1 | Call | $101.00 | $4.20 |
REMX covered call risk and reward
- Net Premium / Debit
- -$9,235.00
- Max Profit (per contract)
- $865.00
- Max Loss (per contract)
- -$9,234.00
- Breakeven(s)
- $92.35
- Risk / Reward Ratio
- 0.094
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.
REMX covered call payoff curve
Modeled P&L at expiration across a range of underlying prices for the covered call on REMX. 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 | -100.0% | -$9,234.00 |
| $21.36 | -77.9% | -$7,099.34 |
| $42.70 | -55.8% | -$4,964.67 |
| $64.05 | -33.7% | -$2,830.01 |
| $85.40 | -11.6% | -$695.35 |
| $106.74 | +10.6% | +$865.00 |
| $128.09 | +32.7% | +$865.00 |
| $149.44 | +54.8% | +$865.00 |
| $170.78 | +76.9% | +$865.00 |
| $192.13 | +99.0% | +$865.00 |
When traders use covered call on REMX
Covered calls on REMX are an income strategy run on existing REMX etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
REMX thesis for this covered call
The market-implied 1-standard-deviation range for REMX extends from approximately $82.49 on the downside to $110.61 on the upside. A REMX covered call collects premium on an existing long REMX position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether REMX will breach that level within the expiration window. Current REMX IV rank near 55.30% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on REMX should anchor more to the directional view and the expected-move geometry. As a Financial Services name, REMX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to REMX-specific events.
REMX 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. REMX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move REMX alongside the broader basket even when REMX-specific fundamentals are unchanged. Short-premium structures like a covered call on REMX carry tail risk when realized volatility exceeds the implied move; review historical REMX earnings reactions and macro stress periods before sizing. Always rebuild the position from current REMX chain quotes before placing a trade.
Frequently asked questions
- What is a covered call on REMX?
- A covered call on REMX is the covered call strategy applied to REMX (etf). 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 REMX etf trading near $96.55, the strikes shown on this page are snapped to the nearest listed REMX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are REMX 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 REMX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 50.80%), the computed maximum profit is $865.00 per contract and the computed maximum loss is -$9,234.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a REMX covered call?
- The breakeven for the REMX covered call priced on this page is roughly $92.35 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 REMX market-implied 1-standard-deviation expected move is approximately 14.56%; 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 REMX?
- Covered calls on REMX are an income strategy run on existing REMX etf positions; traders typically sell calls at 25-35 delta with 30-45 days to expiration to balance premium against upside cap.
- How does current REMX implied volatility affect this covered call?
- REMX ATM IV is at 50.80% with IV rank near 55.30%, 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.