How are VOX 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 VOX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 19.90%), the computed maximum profit is $1,164.50 per contract and the computed maximum loss is -$19,334.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a VOX covered call?

The breakeven for the VOX covered call priced on this page is roughly $193.36 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 VOX market-implied 1-standard-deviation expected move is approximately 5.71%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current VOX implied volatility affect this covered call?

VOX ATM IV is at 19.90% with IV rank near 48.69%, 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.

VOX Covered Call Strategy

VOX (Vanguard Communication Services ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

Seeks to track the performance of a benchmark index that measures the investment return of stocks in the communication services sector. Passively managed, using a full-replication strategy when possible and a sampling strategy if regulatory constraints dictate. Includes stocks of companies that provide telephone, data-transmission, cellular, wireless communication services and offer related content and information through various media.

VOX (Vanguard Communication Services ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $6.41B, a beta of 0.98 versus the broader market, a 52-week range of 155.92-200.77, average daily share volume of 246K, a public-listing history dating back to 2004. These structural characteristics shape how VOX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.98 places VOX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. VOX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on VOX?

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 VOX snapshot

As of May 15, 2026, spot at $195.78, ATM IV 19.90%, IV rank 48.69%, expected move 5.71%. The covered call on VOX 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 VOX specifically: VOX IV at 19.90% is mid-range versus its 1-year history, so the credit collected on a VOX covered call sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 5.71% (roughly $11.17 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 VOX expiries trade a higher absolute premium for lower per-day decay. Position sizing on VOX should anchor to the underlying notional of $195.78 per share and to the trader's directional view on VOX etf.

VOX covered call setup

The VOX 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 VOX near $195.78, the first option leg uses a $205.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VOX 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 VOX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$195.78	long
Sell 1	Call	$205.00	$2.43

VOX covered call risk and reward

Net Premium / Debit: -$19,335.50
Max Profit (per contract): $1,164.50
Max Loss (per contract): -$19,334.50
Breakeven(s): $193.36
Risk / Reward Ratio: 0.060

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.

VOX covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on VOX. 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%	-$19,334.50
$43.30	-77.9%	-$15,005.81
$86.58	-55.8%	-$10,677.11
$129.87	-33.7%	-$6,348.42
$173.16	-11.6%	-$2,019.73
$216.44	+10.6%	+$1,164.50
$259.73	+32.7%	+$1,164.50
$303.02	+54.8%	+$1,164.50
$346.31	+76.9%	+$1,164.50
$389.59	+99.0%	+$1,164.50

When traders use covered call on VOX

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

VOX thesis for this covered call

The market-implied 1-standard-deviation range for VOX extends from approximately $184.61 on the downside to $206.95 on the upside. A VOX covered call collects premium on an existing long VOX position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether VOX will breach that level within the expiration window. Current VOX IV rank near 48.69% is mid-range against its 1-year distribution, so the IV signal is neutral; the covered call thesis on VOX should anchor more to the directional view and the expected-move geometry. As a Financial Services name, VOX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VOX-specific events.

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

Frequently asked questions

What is a covered call on VOX?: A covered call on VOX is the covered call strategy applied to VOX (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 VOX etf trading near $195.78, the strikes shown on this page are snapped to the nearest listed VOX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are VOX 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 VOX covered call priced from the end-of-day chain at a 30-day expiry (ATM IV 19.90%), the computed maximum profit is $1,164.50 per contract and the computed maximum loss is -$19,334.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a VOX covered call?: The breakeven for the VOX covered call priced on this page is roughly $193.36 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 VOX market-implied 1-standard-deviation expected move is approximately 5.71%; 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 VOX?: Covered calls on VOX are an income strategy run on existing VOX 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 VOX implied volatility affect this covered call?: VOX ATM IV is at 19.90% with IV rank near 48.69%, 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.