RDW Covered Call
Every out-of-the-money RDW 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 $11.00 strike at 9.0% over 36 days.
Open interest and pricing as of the close on 2026-09-16. Recomputed every morning before the open.
RDW covered call candidates — Oct 23, 2026, 36 days out
Strikes are picked by distance from the $10.79 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 |
|---|---|---|---|---|---|---|---|
| $11.00 | 1.9% | $0.98 | 9.0% | 91.6% | $9.82 | 11.0% | 18 |
| $11.50 | 6.6% | $0.77 | 7.2% | 72.8% | $10.01 | 13.8% | 128 |
| $12.00 | 11.2% | $0.65 | 6.0% | 61.1% | $10.14 | 17.2% | 59 |
What the $11.00 call pays at expiration
One illustrative strike — the richest premium in the table — against 100 shares bought at $10.79. Profit caps at $118.50 if RDW finishes above $11.00; below $9.82 the premium stops covering the loss on the stock.
| Stock at expiration | Profit / loss per share | On 100 shares |
|---|---|---|
| $8.09 | $-1.72 | $-172.25 |
| $8.77 | $-1.05 | $-104.81 |
| $9.44 | $-0.37 | $-37.37 |
| $10.12 | +$0.30 | +$30.06 |
| $10.79 | +$0.98 | +$97.50 |
| $11.46 | +$1.19 | +$118.50 |
| $12.14 | +$1.19 | +$118.50 |
| $12.81 | +$1.19 | +$118.50 |
| $13.49 | +$1.19 | +$118.50 |
When a covered call fits RDW
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 RDW 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 RDW loaded.
Questions
- What does a RDW covered call pay right now?
- The $11.00 call expiring Oct 23, 2026 (36 days out) collects $0.98 per share, 9.0% of the $10.79 share price, or 91.6% annualised if you repeat it.
- What is the break-even on a RDW covered call?
- Selling the $11.00 call against stock bought at $10.79 breaks even at $9.82 — the share price less the premium. Below that the premium no longer covers the loss on the shares.
- What happens if RDW closes above the strike?
- The shares are called away at $11.00. Total return is 11.0%: the premium plus the move from $10.79 up to the strike. Gains above the strike belong to the buyer.
More on RDW
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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.