KWEB Covered Call
Every out-of-the-money KWEB 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 2.6% over 36 days.
Open interest and pricing as of the close on 2026-09-16. Recomputed every morning before the open.
KWEB covered call candidates — Oct 23, 2026, 36 days out
Strikes are picked by distance from the $24.24 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 | 3.1% | $0.62 | 2.6% | 25.9% | $23.62 | 5.7% | 775 |
| $25.50 | 5.2% | $0.36 | 1.5% | 15.1% | $23.88 | 6.7% | 18 |
| $26.50 | 9.3% | $0.23 | 0.9% | 9.6% | $24.01 | 10.3% | 4,395 |
What the $25.00 call pays at expiration
One illustrative strike — the richest premium in the table — against 100 shares bought at $24.24. Profit caps at $138.00 if KWEB finishes above $25.00; below $23.62 the premium stops covering the loss on the stock.
| Stock at expiration | Profit / loss per share | On 100 shares |
|---|---|---|
| $18.18 | $-5.44 | $-544.00 |
| $19.70 | $-3.92 | $-392.50 |
| $21.21 | $-2.41 | $-241.00 |
| $22.72 | $-0.90 | $-89.50 |
| $24.24 | +$0.62 | +$62.00 |
| $25.76 | +$1.38 | +$138.00 |
| $27.27 | +$1.38 | +$138.00 |
| $28.78 | +$1.38 | +$138.00 |
| $30.30 | +$1.38 | +$138.00 |
When a covered call fits KWEB
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 KWEB 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 KWEB loaded.
Questions
- What does a KWEB covered call pay right now?
- The $25.00 call expiring Oct 23, 2026 (36 days out) collects $0.62 per share, 2.6% of the $24.24 share price, or 25.9% annualised if you repeat it.
- What is the break-even on a KWEB covered call?
- Selling the $25.00 call against stock bought at $24.24 breaks even at $23.62 — the share price less the premium. Below that the premium no longer covers the loss on the shares.
- What happens if KWEB closes above the strike?
- The shares are called away at $25.00. Total return is 5.7%: the premium plus the move from $24.24 up to the strike. Gains above the strike belong to the buyer.
More on KWEB
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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.