SHOP Covered Call
Every out-of-the-money SHOP 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 $134.00 strike at 5.0% over 36 days.
Open interest and pricing as of the close on 2026-09-16. Recomputed every morning before the open.
SHOP covered call candidates — Oct 23, 2026, 36 days out
Strikes are picked by distance from the $129.96 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 |
|---|---|---|---|---|---|---|---|
| $134.00 | 3.1% | $6.53 | 5.0% | 50.9% | $123.44 | 8.1% | 3 |
| $136.00 | 4.6% | $5.95 | 4.6% | 46.4% | $124.01 | 9.2% | 12 |
| $143.00 | 10.0% | $3.76 | 2.9% | 29.3% | $126.20 | 12.9% | 31 |
What the $134.00 call pays at expiration
One illustrative strike — the richest premium in the table — against 100 shares bought at $129.96. Profit caps at $1,056.50 if SHOP finishes above $134.00; below $123.44 the premium stops covering the loss on the stock.
| Stock at expiration | Profit / loss per share | On 100 shares |
|---|---|---|
| $97.47 | $-25.97 | $-2,596.50 |
| $105.59 | $-17.84 | $-1,784.25 |
| $113.72 | $-9.72 | $-972.00 |
| $121.84 | $-1.60 | $-159.75 |
| $129.96 | +$6.53 | +$652.50 |
| $138.08 | +$10.56 | +$1,056.50 |
| $146.21 | +$10.56 | +$1,056.50 |
| $154.33 | +$10.56 | +$1,056.50 |
| $162.45 | +$10.56 | +$1,056.50 |
When a covered call fits SHOP
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 SHOP 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 SHOP loaded.
Questions
- What does a SHOP covered call pay right now?
- The $134.00 call expiring Oct 23, 2026 (36 days out) collects $6.53 per share, 5.0% of the $129.96 share price, or 50.9% annualised if you repeat it.
- What is the break-even on a SHOP covered call?
- Selling the $134.00 call against stock bought at $129.96 breaks even at $123.44 — the share price less the premium. Below that the premium no longer covers the loss on the shares.
- What happens if SHOP closes above the strike?
- The shares are called away at $134.00. Total return is 8.1%: the premium plus the move from $129.96 up to the strike. Gains above the strike belong to the buyer.
More on SHOP
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.