KO Covered Call
Every out-of-the-money KO 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 $91.00 strike at 1.1% over 36 days.
Open interest and pricing as of the close on 2026-09-16. Recomputed every morning before the open.
KO covered call candidates — Oct 23, 2026, 36 days out
Strikes are picked by distance from the $87.87 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 |
|---|---|---|---|---|---|---|---|
| $91.00 | 3.6% | $1.01 | 1.1% | 11.6% | $86.87 | 4.7% | 22 |
| $92.00 | 4.7% | $0.79 | 0.9% | 9.2% | $87.08 | 5.6% | 93 |
| $97.00 | 10.4% | $0.16 | 0.2% | 1.8% | $87.71 | 10.6% | 12 |
What the $91.00 call pays at expiration
One illustrative strike — the richest premium in the table — against 100 shares bought at $87.87. Profit caps at $413.50 if KO finishes above $91.00; below $86.87 the premium stops covering the loss on the stock.
| Stock at expiration | Profit / loss per share | On 100 shares |
|---|---|---|
| $65.90 | $-20.96 | $-2,096.25 |
| $71.39 | $-15.47 | $-1,547.06 |
| $76.89 | $-9.98 | $-997.88 |
| $82.38 | $-4.49 | $-448.69 |
| $87.87 | +$1.01 | +$100.50 |
| $93.36 | +$4.13 | +$413.50 |
| $98.85 | +$4.13 | +$413.50 |
| $104.35 | +$4.13 | +$413.50 |
| $109.84 | +$4.13 | +$413.50 |
When a covered call fits KO
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 KO 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 KO loaded.
Questions
- What does a KO covered call pay right now?
- The $91.00 call expiring Oct 23, 2026 (36 days out) collects $1.01 per share, 1.1% of the $87.87 share price, or 11.6% annualised if you repeat it.
- What is the break-even on a KO covered call?
- Selling the $91.00 call against stock bought at $87.87 breaks even at $86.87 — the share price less the premium. Below that the premium no longer covers the loss on the shares.
- What happens if KO closes above the strike?
- The shares are called away at $91.00. Total return is 4.7%: the premium plus the move from $87.87 up to the strike. Gains above the strike belong to the buyer.
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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.