MCHP Covered Call
Every out-of-the-money MCHP 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 $72.00 strike at 4.4% over 36 days.
Open interest and pricing as of the close on 2026-09-16. Recomputed every morning before the open.
MCHP covered call candidates — Oct 23, 2026, 36 days out
Strikes are picked by distance from the $69.59 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 |
|---|---|---|---|---|---|---|---|
| $72.00 | 3.5% | $3.05 | 4.4% | 44.4% | $66.54 | 7.8% | 1 |
| $73.00 | 4.9% | $2.75 | 4.0% | 40.1% | $66.84 | 8.9% | 10 |
| $77.00 | 10.6% | $1.60 | 2.3% | 23.3% | $67.99 | 12.9% | 0 |
What the $72.00 call pays at expiration
One illustrative strike — the richest premium in the table — against 100 shares bought at $69.59. Profit caps at $546.00 if MCHP finishes above $72.00; below $66.54 the premium stops covering the loss on the stock.
| Stock at expiration | Profit / loss per share | On 100 shares |
|---|---|---|
| $52.19 | $-14.35 | $-1,434.75 |
| $56.54 | $-10.00 | $-999.81 |
| $60.89 | $-5.65 | $-564.87 |
| $65.24 | $-1.30 | $-129.94 |
| $69.59 | +$3.05 | +$305.00 |
| $73.94 | +$5.46 | +$546.00 |
| $78.29 | +$5.46 | +$546.00 |
| $82.64 | +$5.46 | +$546.00 |
| $86.99 | +$5.46 | +$546.00 |
When a covered call fits MCHP
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 MCHP 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 MCHP loaded.
Questions
- What does a MCHP covered call pay right now?
- The $72.00 call expiring Oct 23, 2026 (36 days out) collects $3.05 per share, 4.4% of the $69.59 share price, or 44.4% annualised if you repeat it.
- What is the break-even on a MCHP covered call?
- Selling the $72.00 call against stock bought at $69.59 breaks even at $66.54 — the share price less the premium. Below that the premium no longer covers the loss on the shares.
- What happens if MCHP closes above the strike?
- The shares are called away at $72.00. Total return is 7.8%: the premium plus the move from $69.59 up to the strike. Gains above the strike belong to the buyer.
More on MCHP
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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.