VIX Covered Call
Every out-of-the-money VIX call expiring Oct 21, 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 $18.00 strike at 11.8% over 34 days.
Open interest and pricing as of the close on 2026-09-16. Recomputed every morning before the open.
VIX covered call candidates — Oct 21, 2026, 34 days out
Strikes are picked by distance from the $17.71 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 — 34 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 |
|---|---|---|---|---|---|---|---|
| $18.00 | 1.6% | $2.09 | 11.8% | 126.4% | $15.63 | 13.4% | 40,546 |
| $18.50 | 4.5% | $1.94 | 10.9% | 117.3% | $15.78 | 15.4% | 67,549 |
| $19.50 | 10.1% | $1.67 | 9.5% | 101.5% | $16.04 | 19.6% | 9,873 |
What the $18.00 call pays at expiration
One illustrative strike — the richest premium in the table — against 100 shares bought at $17.71. Profit caps at $237.50 if VIX finishes above $18.00; below $15.63 the premium stops covering the loss on the stock.
| Stock at expiration | Profit / loss per share | On 100 shares |
|---|---|---|
| $13.28 | $-2.34 | $-234.25 |
| $14.39 | $-1.24 | $-123.56 |
| $15.50 | $-0.13 | $-12.87 |
| $16.60 | +$0.98 | +$97.81 |
| $17.71 | +$2.09 | +$208.50 |
| $18.82 | +$2.37 | +$237.50 |
| $19.92 | +$2.37 | +$237.50 |
| $21.03 | +$2.37 | +$237.50 |
| $22.14 | +$2.37 | +$237.50 |
When a covered call fits VIX
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 VIX 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 VIX loaded.
Questions
- What does a VIX covered call pay right now?
- The $18.00 call expiring Oct 21, 2026 (34 days out) collects $2.09 per share, 11.8% of the $17.71 share price, or 126.4% annualised if you repeat it.
- What is the break-even on a VIX covered call?
- Selling the $18.00 call against stock bought at $17.71 breaks even at $15.63 — the share price less the premium. Below that the premium no longer covers the loss on the shares.
- What happens if VIX closes above the strike?
- The shares are called away at $18.00. Total return is 13.4%: the premium plus the move from $17.71 up to the strike. Gains above the strike belong to the buyer.
More on VIX
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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.