ON Covered Call
Every out-of-the-money ON 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 $69.00 strike at 5.8% over 36 days.
Open interest and pricing as of the close on 2026-09-16. Recomputed every morning before the open.
ON covered call candidates — Oct 23, 2026, 36 days out
Strikes are picked by distance from the $66.60 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 |
|---|---|---|---|---|---|---|---|
| $69.00 | 3.6% | $3.88 | 5.8% | 59.0% | $62.72 | 9.4% | 0 |
| $70.00 | 5.1% | $3.60 | 5.4% | 54.8% | $63.00 | 10.5% | 18 |
| $73.00 | 9.6% | $2.48 | 3.7% | 37.8% | $64.12 | 13.3% | 9 |
What the $69.00 call pays at expiration
One illustrative strike — the richest premium in the table — against 100 shares bought at $66.60. Profit caps at $627.50 if ON finishes above $69.00; below $62.72 the premium stops covering the loss on the stock.
| Stock at expiration | Profit / loss per share | On 100 shares |
|---|---|---|
| $49.95 | $-12.77 | $-1,277.50 |
| $54.11 | $-8.61 | $-861.25 |
| $58.28 | $-4.45 | $-445.00 |
| $62.44 | $-0.29 | $-28.75 |
| $66.60 | +$3.88 | +$387.50 |
| $70.76 | +$6.28 | +$627.50 |
| $74.93 | +$6.28 | +$627.50 |
| $79.09 | +$6.28 | +$627.50 |
| $83.25 | +$6.28 | +$627.50 |
When a covered call fits ON
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 ON 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 ON loaded.
Questions
- What does a ON covered call pay right now?
- The $69.00 call expiring Oct 23, 2026 (36 days out) collects $3.88 per share, 5.8% of the $66.60 share price, or 59.0% annualised if you repeat it.
- What is the break-even on a ON covered call?
- Selling the $69.00 call against stock bought at $66.60 breaks even at $62.72 — the share price less the premium. Below that the premium no longer covers the loss on the shares.
- What happens if ON closes above the strike?
- The shares are called away at $69.00. Total return is 9.4%: the premium plus the move from $66.60 up to the strike. Gains above the strike belong to the buyer.
More on ON
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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.