Vanguard Morningstar Small-Cap ETF (VB) Covered Calls

Running VB covered calls helps you generate income from Vanguard Morningstar Small-Cap ETF shares you already own, turning a long stock position into a yield producing asset. A covered call means holding the underlying stock and selling a call option against it, collecting premium in exchange for capping upside at the strike. Use our scanner to find the best VB covered calls in real time and filter for the strikes, expiries, and premiums that fit your strategy.

A covered call pairs limited risk with a clear income profile. If VB stays below the strike at expiration, you keep the premium and the shares. If it rises above, you deliver the stock at the strike and still pocket the premium. Selling VB covered calls works best when implied volatility is elevated, since richer premiums improve the risk reward. Key inputs include strike selection relative to delta, days to expiration, annualized return, and probability of assignment, all of which determine whether a given VB covered call is worth writing.

Seeks to track the performance of the CRSP US Small Cap Index, which measures the investment return of small-capitalization stocks. Provides a convenient way to match the performance of a diversified group of small companies. Follows a passively managed, full-replication approach.