RDDT Covered Call
Every out-of-the-money RDDT 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 $160.00 strike at 7.0% over 36 days.
Open interest and pricing as of the close on 2026-09-16. Recomputed every morning before the open.
RDDT covered call candidates — Oct 23, 2026, 36 days out
Strikes are picked by distance from the $157.60 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 |
|---|---|---|---|---|---|---|---|
| $160.00 | 1.5% | $11.10 | 7.0% | 71.4% | $146.50 | 8.6% | 99 |
| $165.00 | 4.7% | $9.38 | 5.9% | 60.3% | $148.23 | 10.6% | 57 |
| $175.00 | 11.0% | $6.00 | 3.8% | 38.6% | $151.60 | 14.8% | 116 |
What the $160.00 call pays at expiration
One illustrative strike — the richest premium in the table — against 100 shares bought at $157.60. Profit caps at $1,350.00 if RDDT finishes above $160.00; below $146.50 the premium stops covering the loss on the stock.
| Stock at expiration | Profit / loss per share | On 100 shares |
|---|---|---|
| $118.20 | $-28.30 | $-2,830.00 |
| $128.05 | $-18.45 | $-1,845.00 |
| $137.90 | $-8.60 | $-860.00 |
| $147.75 | +$1.25 | +$125.00 |
| $157.60 | +$11.10 | +$1,110.00 |
| $167.45 | +$13.50 | +$1,350.00 |
| $177.30 | +$13.50 | +$1,350.00 |
| $187.15 | +$13.50 | +$1,350.00 |
| $197.00 | +$13.50 | +$1,350.00 |
When a covered call fits RDDT
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 RDDT 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 RDDT loaded.
Questions
- What does a RDDT covered call pay right now?
- The $160.00 call expiring Oct 23, 2026 (36 days out) collects $11.10 per share, 7.0% of the $157.60 share price, or 71.4% annualised if you repeat it.
- What is the break-even on a RDDT covered call?
- Selling the $160.00 call against stock bought at $157.60 breaks even at $146.50 — the share price less the premium. Below that the premium no longer covers the loss on the shares.
- What happens if RDDT closes above the strike?
- The shares are called away at $160.00. Total return is 8.6%: the premium plus the move from $157.60 up to the strike. Gains above the strike belong to the buyer.
More on RDDT
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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.