BNO Covered Call
Every out-of-the-money BNO 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 $63.50 strike at 5.7% over 36 days.
Open interest and pricing as of the close on 2026-09-16. Recomputed every morning before the open.
BNO covered call candidates — Oct 23, 2026, 36 days out
Strikes are picked by distance from the $61.71 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 — 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 |
|---|---|---|---|---|---|---|---|
| $63.50 | 2.9% | $3.53 | 5.7% | 57.9% | $58.19 | 8.6% | 3 |
| $65.00 | 5.3% | $3.50 | 5.7% | 57.5% | $58.21 | 11.0% | 359 |
| $70.00 | 13.4% | $2.00 | 3.2% | 32.9% | $59.71 | 16.7% | 94 |
What the $63.50 call pays at expiration
One illustrative strike — the richest premium in the table — against 100 shares bought at $61.71. Profit caps at $531.50 if BNO finishes above $63.50; below $58.19 the premium stops covering the loss on the stock.
| Stock at expiration | Profit / loss per share | On 100 shares |
|---|---|---|
| $46.28 | $-11.90 | $-1,190.25 |
| $50.14 | $-8.05 | $-804.56 |
| $54.00 | $-4.19 | $-418.87 |
| $57.85 | $-0.33 | $-33.19 |
| $61.71 | +$3.53 | +$352.50 |
| $65.57 | +$5.31 | +$531.50 |
| $69.42 | +$5.31 | +$531.50 |
| $73.28 | +$5.31 | +$531.50 |
| $77.14 | +$5.31 | +$531.50 |
When a covered call fits BNO
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 BNO 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 BNO loaded.
Questions
- What does a BNO covered call pay right now?
- The $63.50 call expiring Oct 23, 2026 (36 days out) collects $3.53 per share, 5.7% of the $61.71 share price, or 57.9% annualised if you repeat it.
- What is the break-even on a BNO covered call?
- Selling the $63.50 call against stock bought at $61.71 breaks even at $58.19 — the share price less the premium. Below that the premium no longer covers the loss on the shares.
- What happens if BNO closes above the strike?
- The shares are called away at $63.50. Total return is 8.6%: the premium plus the move from $61.71 up to the strike. Gains above the strike belong to the buyer.
More on BNO
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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.