LULU Covered Call
Every out-of-the-money LULU 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 $99.00 strike at 4.5% over 36 days.
Open interest and pricing as of the close on 2026-09-16. Recomputed every morning before the open.
LULU covered call candidates — Oct 23, 2026, 36 days out
Strikes are picked by distance from the $95.98 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 |
|---|---|---|---|---|---|---|---|
| $99.00 | 3.1% | $4.28 | 4.5% | 45.2% | $91.71 | 7.6% | 1 |
| $101.00 | 5.2% | $3.42 | 3.6% | 36.1% | $92.57 | 8.8% | 3 |
| $106.00 | 10.4% | $2.11 | 2.2% | 22.2% | $93.88 | 12.6% | 4 |
What the $99.00 call pays at expiration
One illustrative strike — the richest premium in the table — against 100 shares bought at $95.98. Profit caps at $729.50 if LULU finishes above $99.00; below $91.71 the premium stops covering the loss on the stock.
| Stock at expiration | Profit / loss per share | On 100 shares |
|---|---|---|
| $71.99 | $-19.72 | $-1,972.00 |
| $77.98 | $-13.72 | $-1,372.13 |
| $83.98 | $-7.72 | $-772.25 |
| $89.98 | $-1.72 | $-172.38 |
| $95.98 | +$4.28 | +$427.50 |
| $101.98 | +$7.29 | +$729.50 |
| $107.98 | +$7.29 | +$729.50 |
| $113.98 | +$7.29 | +$729.50 |
| $119.98 | +$7.29 | +$729.50 |
When a covered call fits LULU
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 LULU 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 LULU loaded.
Questions
- What does a LULU covered call pay right now?
- The $99.00 call expiring Oct 23, 2026 (36 days out) collects $4.28 per share, 4.5% of the $95.98 share price, or 45.2% annualised if you repeat it.
- What is the break-even on a LULU covered call?
- Selling the $99.00 call against stock bought at $95.98 breaks even at $91.71 — the share price less the premium. Below that the premium no longer covers the loss on the shares.
- What happens if LULU closes above the strike?
- The shares are called away at $99.00. Total return is 7.6%: the premium plus the move from $95.98 up to the strike. Gains above the strike belong to the buyer.
More on LULU
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.