How are VYMI 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 VYMI covered call priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.90%), the computed maximum profit is $423.50 per contract and the computed maximum loss is -$10,075.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a VYMI covered call?

The breakeven for the VYMI covered call priced on this page is roughly $100.77 at expiration, derived from the September 29, 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 VYMI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current VYMI implied volatility affect this covered call?

VYMI ATM IV is at 24.90% with IV rank near 5.10%, 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.

VYMI Covered Call Strategy

VYMI (Vanguard International High Dividend Yield ETF), in the Financial Services sector, (Asset Management - Income industry), listed on NASDAQ.

This ETF is designed to mirror the financial performance of the FTSE All-World ex US High Dividend Yield Index. It offers an effortless avenue for investors to access a portfolio of non-U.S. stocks, specifically those projected to deliver substantial dividend income. The fund operates under a passive management structure, employing a strategic sampling methodology.

VYMI (Vanguard International High Dividend Yield ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $19.97B, a beta of 0.74 versus the broader market, a 52-week range of 82.845-107.29, average daily share volume of 880K, a public-listing history dating back to 2016. These structural characteristics shape how VYMI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.74 places VYMI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. VYMI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a covered call on VYMI?

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.

VYMI snapshot

As of September 29, 2026, spot at $101.59, ATM IV 24.90%, IV rank 5.10%, expected move 7.14%. The covered call on VYMI below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 52-day expiry.

Why this covered call structure on VYMI specifically: VYMI IV at 24.90% is on the cheap side of its 1-year range, which means a premium-selling VYMI covered call collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.14% (roughly $7.25 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated VYMI expiries trade a higher absolute premium for lower per-day decay. Position sizing on VYMI should anchor to the underlying notional of $101.59 per share and to the trader's directional view on VYMI etf.

VYMI covered call setup

The VYMI covered call below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With VYMI at $101.59 on that close, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VYMI chain at a 52-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 VYMI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$101.59	long
Sell 1	Call	$105.00	$0.83

VYMI covered call risk and reward

Net Premium / Debit: -$10,076.50
Max Profit (per contract): $423.50
Max Loss (per contract): -$10,075.50
Breakeven(s): $100.77
Risk / Reward Ratio: 0.042

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.

VYMI covered call payoff curve

Modeled P&L at expiration across a range of underlying prices for the covered call on VYMI. 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%	-$10,075.50
$22.47	-77.9%	-$7,829.40
$44.93	-55.8%	-$5,583.30
$67.39	-33.7%	-$3,337.20
$89.85	-11.6%	-$1,091.10
$112.32	+10.6%	+$423.50
$134.78	+32.7%	+$423.50
$157.24	+54.8%	+$423.50
$179.70	+76.9%	+$423.50
$202.16	+99.0%	+$423.50

When traders use covered call on VYMI

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

VYMI thesis for this covered call

The market-implied 1-standard-deviation range for VYMI extends from approximately $94.34 on the downside to $108.84 on the upside. A VYMI covered call collects premium on an existing long VYMI position, trading off upside above the short call strike for immediate income; the short strike selection should reflect the trader's view on whether VYMI will breach that level within the expiration window. Current VYMI IV rank near 5.10% 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 VYMI at 24.90%. As a Financial Services name, VYMI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VYMI-specific events.

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

Frequently asked questions

What is a covered call on VYMI?: A covered call on VYMI is the covered call strategy applied to VYMI (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 VYMI etf at $101.59 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed VYMI chain strike and the premiums come straight from that session's bid/ask midpoint.
How are VYMI 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 VYMI covered call priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.90%), the computed maximum profit is $423.50 per contract and the computed maximum loss is -$10,075.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a VYMI covered call?: The breakeven for the VYMI covered call priced on this page is roughly $100.77 at expiration, derived from the September 29, 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 VYMI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.14%; 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 VYMI?: Covered calls on VYMI are an income strategy run on existing VYMI 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 VYMI implied volatility affect this covered call?: VYMI ATM IV is at 24.90% with IV rank near 5.10%, 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.