Vanguard Communication Services ETF (VOX) Covered Calls
The Vanguard Communication Services ETF (VOX) is an exchange-traded fund that tracks the MSCI US Investable Market Communication Services 25/50 Index. It provides broad exposure to U.S. companies in the communication services sector, which includes telecommunications, media, entertainment, and interactive media and services companies.
You can sell covered calls on Vanguard Communication Services ETF 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 VOX (prices last updated Wed 2:15 PM ET):
| Vanguard Communication Services ETF (VOX) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 182.03 | +2.19 | 181.79 | 181.83 | 117K | - | 1.2 |
| Covered Calls For Vanguard Communication Services ETF (VOX) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| Apr 17 | 182 | 1.85 | 179.98 | 1.0% | 21.5% | |
| May 15 | 182 | 4.00 | 177.83 | 2.2% | 17.8% | |
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Core Business and Products
The Vanguard Communication Services ETF (VOX) offers a comprehensive way for investors to capture the evolution of the modern communication landscape. The fund includes legacy telecommunications providers alongside high-growth digital media, internet search, and social media platforms. By including firms that provide both infrastructure and content delivery, VOX covers the entire spectrum of how information is shared and consumed in the digital age.
The fund is structured as a passive, market-cap-weighted ETF. Its portfolio is heavily concentrated in large-cap companies that dominate the internet services space, such as Alphabet and Meta Platforms. This concentration means the fund’s performance is often closely tied to the valuation of these digital advertising giants and the health of the broader media and telecom industries.
Competitive Landscape
VOX competes with other sector-specific funds like the Communication Services Select Sector SPDR Fund. While the underlying benchmarks are similar, VOX typically offers a broader reach into the U.S. investable market, including small- and mid-cap companies, whereas the XLC is more concentrated on the largest, most liquid constituents of the S&P 500.
Because VOX is highly liquid and optionable on U.S. exchanges, it is widely used by tactical traders and institutional investors. The optionability of the fund allows investors to hedge their exposure to the technology-heavy media sector or to generate income through covered call strategies, which is particularly popular given the volatility inherent in media and internet stocks.
Strategic Outlook and Innovation
The strategic outlook for VOX is anchored in the continued digital transformation of the global economy. As companies shift more of their marketing and operational spend toward interactive media, the firms within VOX are positioned to benefit. The fund remains an evergreen tool for investors seeking core exposure to the companies that facilitate modern connectivity and digital advertising.
Innovation in this space is driven by the rapid development of new interactive platforms and content delivery systems. VOX provides a low-cost, efficient mechanism to gain participation in this growth, allowing shareholders to benefit from the dominance of large-scale communication enterprises while maintaining a diversified footprint across the entire sector.
| Top 10 Open Interest For Apr 17 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | SLV covered calls | 6. | QQQ covered calls | 1. | REPL covered calls | |
| 2. | EEM covered calls | 7. | GLD covered calls | 2. | CMPX covered calls | |
| 3. | NVDA covered calls | 8. | TLT covered calls | 3. | LUNR covered calls | |
| 4. | KWEB covered calls | 9. | HYG covered calls | 4. | AAOI covered calls | |
| 5. | SPY covered calls | 10. | EWZ covered calls | 5. | WULF covered calls | |
Want more examples? VOT Covered Calls | VOYA Covered Calls
Risk Disclosure: Trading options involves significant risk and is not suitable for all investors. The information provided on this website is for educational and informational purposes only and does not constitute financial, investment, tax, or legal advice. Nothing contained on this site is an offer to buy or sell, or a solicitation of an offer to buy or sell, any securities or financial instruments.
Covered Call Strategy Risks: While covered call writing is often considered a conservative options strategy, it is not without risk. By selling a covered call, you are limiting your potential upside profit from the underlying stock. You remain exposed to the full downside risk of owning the underlying stock. In the event of a significant decline in the stock price, the premium received may not be sufficient to offset your losses.
No Guarantee of Performance: Past performance is not indicative of future results. Any examples, calculations, or hypothetical scenarios presented on this site are for illustrative purposes only and do not guarantee future returns or outcomes. Market conditions, liquidity, and trading system failures can affect your ability to execute trades at desired prices.
You should consult with a qualified professional advisor and conduct your own due diligence before making any investment decisions. By using this website, you acknowledge that you are responsible for your own investment decisions and agree to release this site and its affiliates from any liability relating to your use of this information. See the OCC's Characteristics and Risks of Standardized Options for more info.
