Valaris Limited Common Shares (VAL) Covered Calls

Valaris Limited is the world’s largest offshore drilling contractor, providing high-specification drilling services to the global energy industry. The company operates a premier fleet of ultra-deepwater drillships, semisubmersibles, and modern jackups. In early 2026, Valaris entered into a definitive agreement to be acquired by Transocean Ltd. in an all-stock transaction, a move intended to consolidate the offshore drilling market amid surging demand for deepwater assets.

You can sell covered calls on Valaris Limited Common Shares to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for VAL (prices last updated Tue 4:16 PM ET):

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Core Business and Fleet Operations

Valaris Limited (NYSE: VAL) provides contract drilling services to international, government-owned, and independent oil and gas companies. Its diverse fleet of over 50 rigs is optimized for both harsh-environment jackup work and ultra-deepwater exploration. In 2026, the company is benefiting from a multi-year high in offshore day rates, driven by a tight supply of high-spec rigs and a robust $4.7 billion contract backlog, including major multi-year extensions with Petrobras through 2030.

The defining event for 2026 is the pending business combination with Transocean Ltd. (RIG). Announced in February 2026, this all-stock merger is expected to close in the second half of the year, creating a dominant global offshore driller. Until the deal closes, Valaris continues to operate independently, focusing on high-return projects in the Guyana-Suriname Basin and the North Sea. The firm remains a "capital-light" operator compared to pre-restructuring years, maintaining zero debt principal payments until 2030.

Competitive Landscape

The offshore drilling sector is highly consolidated and deeply cyclical. Valaris competes primarily on fleet age, technical specification, and safety performance. With the Transocean merger looming, Valaris has seen its stock price surge nearly 90% year-to-date in 2026, trading near $99.00. While it currently outperforms peers in net profit margins (over 40%), it faces execution risks related to the merger and sensitivity to the volatile "war-premium" pricing of global crude oil.

Publicly traded competitors that are optionable include:

1. Transocean Ltd.: The pending merger partner and primary peer in the deepwater segment.
2. Noble Corporation plc: A major rival in the high-spec floater and jackup market following its own recent consolidations.
3. SLB (formerly Schlumberger): The global oilfield services leader, often used as a benchmark for offshore energy sentiment.
4. Borr Drilling Limited: A specialist in the modern jackup market, competing directly with Valaris’s shallow-water fleet.

2026 Strategic Outlook

The remainder of 2026 is centered on "Merger Integration and Backlog Execution." Valaris expects all ten of its active drillships to be fully utilized by year-end, which is a key profitability milestone. Management has guided for 2026 revenues between $2.1 billion and $2.2 billion, excluding merger-related costs. Investors are closely watching for the shareholder vote on the Transocean deal; if approved, VAL shares will eventually be converted into RIG shares, shifting the long-term investment thesis from a "pure-play" driller to part of a global offshore behemoth.

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