VALE Covered Call
Every out-of-the-money VALE call expiring Oct 23, 2026, priced from the settled chain: what it pays, what it yields, and where the trade stops making money. The richest right now is the $14.50 strike at 4.5% over 36 days.
Open interest and pricing as of the close on 2026-09-16. Recomputed every morning before the open.
VALE covered call candidates — Oct 23, 2026, 36 days out
Strikes are picked by distance from the $14.13 share price, not by delta — the published chain carries premiums and open interest, not greeks, and inventing a delta here would be inventing data. Premium is the bid/ask midpoint where both sides quote, otherwise the last trade. The chain artifact publishes the six nearest expirations, so this is the longest one listed — 36 days out. Annualising anything shorter than a week says more about compounding arithmetic than about the trade, so those cells stay blank.
| Strike | % OTM | Premium | Yield | Annualised | Break-even | If assigned | OI |
|---|---|---|---|---|---|---|---|
| $14.50 | 2.6% | $0.64 | 4.5% | 45.9% | $13.49 | 7.1% | 1 |
| $15.50 | 9.7% | $0.32 | 2.3% | 23.0% | $13.81 | 12.0% | 2 |
What the $14.50 call pays at expiration
One illustrative strike — the richest premium in the table — against 100 shares bought at $14.13. Profit caps at $101.00 if VALE finishes above $14.50; below $13.49 the premium stops covering the loss on the stock.
| Stock at expiration | Profit / loss per share | On 100 shares |
|---|---|---|
| $10.60 | $-2.89 | $-289.25 |
| $11.48 | $-2.01 | $-200.94 |
| $12.36 | $-1.13 | $-112.63 |
| $13.25 | $-0.24 | $-24.31 |
| $14.13 | +$0.64 | +$64.00 |
| $15.01 | +$1.01 | +$101.00 |
| $15.90 | +$1.01 | +$101.00 |
| $16.78 | +$1.01 | +$101.00 |
| $17.66 | +$1.01 | +$101.00 |
When a covered call fits VALE
A covered call sells someone else the right to buy your shares at the strike. It pays you today and caps your upside there, so it suits a holding you are content to own flat and content to sell at the strike — not one you expect to run.
The premium is compensation for implied volatility. Rich implied volatility pays more, and usually pays more because the market expects a move; a high annualised number on a name about to report earnings is a warning as often as an opportunity. Check the VALE expected move and the open-interest walls before assuming the strike is far enough away.
Full mechanics, assignment and rolling are in the covered call guide; to model a different strike or a multi-leg version, open the profit calculator with VALE loaded.
Questions
- What does a VALE covered call pay right now?
- The $14.50 call expiring Oct 23, 2026 (36 days out) collects $0.64 per share, 4.5% of the $14.13 share price, or 45.9% annualised if you repeat it.
- What is the break-even on a VALE covered call?
- Selling the $14.50 call against stock bought at $14.13 breaks even at $13.49 — the share price less the premium. Below that the premium no longer covers the loss on the shares.
- What happens if VALE closes above the strike?
- The shares are called away at $14.50. Total return is 7.1%: the premium plus the move from $14.13 up to the strike. Gains above the strike belong to the buyer.
More on VALE
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Educational, not investment advice. Options involve risk. Open interest is reported with a one-session lag by OCC, so these levels describe positioning as of the last settled session, not live intraday flow.