HOOD Covered Call
Every out-of-the-money HOOD 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 $108.00 strike at 6.6% over 36 days.
Open interest and pricing as of the close on 2026-09-16. Recomputed every morning before the open.
HOOD covered call candidates — Oct 23, 2026, 36 days out
Strikes are picked by distance from the $104.42 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 |
|---|---|---|---|---|---|---|---|
| $108.00 | 3.4% | $6.85 | 6.6% | 66.5% | $97.57 | 10.0% | 46 |
| $110.00 | 5.3% | $5.98 | 5.7% | 58.0% | $98.45 | 11.1% | 145 |
| $115.00 | 10.1% | $4.38 | 4.2% | 42.5% | $100.05 | 14.3% | 220 |
What the $108.00 call pays at expiration
One illustrative strike — the richest premium in the table — against 100 shares bought at $104.42. Profit caps at $1,043.00 if HOOD finishes above $108.00; below $97.57 the premium stops covering the loss on the stock.
| Stock at expiration | Profit / loss per share | On 100 shares |
|---|---|---|
| $78.32 | $-19.26 | $-1,925.50 |
| $84.84 | $-12.73 | $-1,272.88 |
| $91.37 | $-6.20 | $-620.25 |
| $97.89 | +$0.32 | +$32.37 |
| $104.42 | +$6.85 | +$685.00 |
| $110.95 | +$10.43 | +$1,043.00 |
| $117.47 | +$10.43 | +$1,043.00 |
| $124.00 | +$10.43 | +$1,043.00 |
| $130.53 | +$10.43 | +$1,043.00 |
When a covered call fits HOOD
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 HOOD 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 HOOD loaded.
Questions
- What does a HOOD covered call pay right now?
- The $108.00 call expiring Oct 23, 2026 (36 days out) collects $6.85 per share, 6.6% of the $104.42 share price, or 66.5% annualised if you repeat it.
- What is the break-even on a HOOD covered call?
- Selling the $108.00 call against stock bought at $104.42 breaks even at $97.57 — the share price less the premium. Below that the premium no longer covers the loss on the shares.
- What happens if HOOD closes above the strike?
- The shares are called away at $108.00. Total return is 10.0%: the premium plus the move from $104.42 up to the strike. Gains above the strike belong to the buyer.
More on HOOD
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.