DKNG Covered Call
Every out-of-the-money DKNG 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 $25.00 strike at 5.8% over 36 days.
Open interest and pricing as of the close on 2026-09-16. Recomputed every morning before the open.
DKNG covered call candidates — Oct 23, 2026, 36 days out
Strikes are picked by distance from the $24.33 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 |
|---|---|---|---|---|---|---|---|
| $25.00 | 2.8% | $1.40 | 5.8% | 58.3% | $22.93 | 8.5% | 80 |
| $26.00 | 6.9% | $1.22 | 5.0% | 50.6% | $23.12 | 11.9% | 44 |
| $27.00 | 11.0% | $0.89 | 3.7% | 37.1% | $23.44 | 14.6% | 71 |
What the $25.00 call pays at expiration
One illustrative strike — the richest premium in the table — against 100 shares bought at $24.33. Profit caps at $207.00 if DKNG finishes above $25.00; below $22.93 the premium stops covering the loss on the stock.
| Stock at expiration | Profit / loss per share | On 100 shares |
|---|---|---|
| $18.25 | $-4.68 | $-468.25 |
| $19.77 | $-3.16 | $-316.19 |
| $21.29 | $-1.64 | $-164.12 |
| $22.81 | $-0.12 | $-12.06 |
| $24.33 | +$1.40 | +$140.00 |
| $25.85 | +$2.07 | +$207.00 |
| $27.37 | +$2.07 | +$207.00 |
| $28.89 | +$2.07 | +$207.00 |
| $30.41 | +$2.07 | +$207.00 |
When a covered call fits DKNG
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 DKNG 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 DKNG loaded.
Questions
- What does a DKNG covered call pay right now?
- The $25.00 call expiring Oct 23, 2026 (36 days out) collects $1.40 per share, 5.8% of the $24.33 share price, or 58.3% annualised if you repeat it.
- What is the break-even on a DKNG covered call?
- Selling the $25.00 call against stock bought at $24.33 breaks even at $22.93 — the share price less the premium. Below that the premium no longer covers the loss on the shares.
- What happens if DKNG closes above the strike?
- The shares are called away at $25.00. Total return is 8.5%: the premium plus the move from $24.33 up to the strike. Gains above the strike belong to the buyer.
More on DKNG
Run the numbers
Weekly options-market digest
Sundays. What moved this week, what catalysts and earnings drive next week, and which 5-pillar setups stand out.
Free. One email per week. Unsubscribe with one click.
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.