KHC Covered Call
Every out-of-the-money KHC 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 $25.50 strike at 2.3% over 36 days.
Open interest and pricing as of the close on 2026-09-16. Recomputed every morning before the open.
KHC covered call candidates — Oct 23, 2026, 36 days out
Strikes are picked by distance from the $24.73 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 |
|---|---|---|---|---|---|---|---|
| $25.50 | 3.1% | $0.56 | 2.3% | 23.0% | $24.17 | 5.4% | 43 |
| $26.00 | 5.1% | $0.37 | 1.5% | 15.2% | $24.36 | 6.6% | 768 |
| $27.00 | 9.2% | $0.19 | 0.7% | 7.6% | $24.55 | 9.9% | 62 |
What the $25.50 call pays at expiration
One illustrative strike — the richest premium in the table — against 100 shares bought at $24.73. Profit caps at $133.00 if KHC finishes above $25.50; below $24.17 the premium stops covering the loss on the stock.
| Stock at expiration | Profit / loss per share | On 100 shares |
|---|---|---|
| $18.55 | $-5.62 | $-562.25 |
| $20.09 | $-4.08 | $-407.69 |
| $21.64 | $-2.53 | $-253.12 |
| $23.18 | $-0.99 | $-98.56 |
| $24.73 | +$0.56 | +$56.00 |
| $26.28 | +$1.33 | +$133.00 |
| $27.82 | +$1.33 | +$133.00 |
| $29.37 | +$1.33 | +$133.00 |
| $30.91 | +$1.33 | +$133.00 |
When a covered call fits KHC
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 KHC 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 KHC loaded.
Questions
- What does a KHC covered call pay right now?
- The $25.50 call expiring Oct 23, 2026 (36 days out) collects $0.56 per share, 2.3% of the $24.73 share price, or 23.0% annualised if you repeat it.
- What is the break-even on a KHC covered call?
- Selling the $25.50 call against stock bought at $24.73 breaks even at $24.17 — the share price less the premium. Below that the premium no longer covers the loss on the shares.
- What happens if KHC closes above the strike?
- The shares are called away at $25.50. Total return is 5.4%: the premium plus the move from $24.73 up to the strike. Gains above the strike belong to the buyer.
More on KHC
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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.