BP Covered Call
Every out-of-the-money BP 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 $47.00 strike at 2.8% over 36 days.
Open interest and pricing as of the close on 2026-09-16. Recomputed every morning before the open.
BP covered call candidates — Oct 23, 2026, 36 days out
Strikes are picked by distance from the $45.38 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 |
|---|---|---|---|---|---|---|---|
| $47.00 | 3.6% | $1.27 | 2.8% | 28.4% | $44.11 | 6.4% | 250 |
| $48.00 | 5.8% | $1.14 | 2.5% | 25.5% | $44.24 | 8.3% | 23 |
| $50.00 | 10.2% | $0.46 | 1.0% | 10.2% | $44.93 | 11.2% | 111 |
What the $47.00 call pays at expiration
One illustrative strike — the richest premium in the table — against 100 shares bought at $45.38. Profit caps at $289.00 if BP finishes above $47.00; below $44.11 the premium stops covering the loss on the stock.
| Stock at expiration | Profit / loss per share | On 100 shares |
|---|---|---|
| $34.04 | $-10.08 | $-1,007.50 |
| $36.87 | $-7.24 | $-723.88 |
| $39.71 | $-4.40 | $-440.25 |
| $42.54 | $-1.57 | $-156.62 |
| $45.38 | +$1.27 | +$127.00 |
| $48.22 | +$2.89 | +$289.00 |
| $51.05 | +$2.89 | +$289.00 |
| $53.89 | +$2.89 | +$289.00 |
| $56.73 | +$2.89 | +$289.00 |
When a covered call fits BP
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 BP 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 BP loaded.
Questions
- What does a BP covered call pay right now?
- The $47.00 call expiring Oct 23, 2026 (36 days out) collects $1.27 per share, 2.8% of the $45.38 share price, or 28.4% annualised if you repeat it.
- What is the break-even on a BP covered call?
- Selling the $47.00 call against stock bought at $45.38 breaks even at $44.11 — the share price less the premium. Below that the premium no longer covers the loss on the shares.
- What happens if BP closes above the strike?
- The shares are called away at $47.00. Total return is 6.4%: the premium plus the move from $45.38 up to the strike. Gains above the strike belong to the buyer.
More on BP
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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.