SNAP Covered Call
Every out-of-the-money SNAP 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 $6.00 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.
SNAP covered call candidates — Oct 23, 2026, 36 days out
Strikes are picked by distance from the $5.72 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 |
|---|---|---|---|---|---|---|---|
| $6.00 | 4.9% | $0.25 | 4.4% | 44.3% | $5.47 | 9.3% | 376 |
| $6.50 | 13.6% | $0.16 | 2.8% | 28.4% | $5.56 | 16.4% | 735 |
What the $6.00 call pays at expiration
One illustrative strike — the richest premium in the table — against 100 shares bought at $5.72. Profit caps at $53.00 if SNAP finishes above $6.00; below $5.47 the premium stops covering the loss on the stock.
| Stock at expiration | Profit / loss per share | On 100 shares |
|---|---|---|
| $4.29 | $-1.18 | $-118.00 |
| $4.65 | $-0.82 | $-82.25 |
| $5.01 | $-0.46 | $-46.50 |
| $5.36 | $-0.11 | $-10.75 |
| $5.72 | +$0.25 | +$25.00 |
| $6.08 | +$0.53 | +$53.00 |
| $6.44 | +$0.53 | +$53.00 |
| $6.79 | +$0.53 | +$53.00 |
| $7.15 | +$0.53 | +$53.00 |
When a covered call fits SNAP
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 SNAP 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 SNAP loaded.
Questions
- What does a SNAP covered call pay right now?
- The $6.00 call expiring Oct 23, 2026 (36 days out) collects $0.25 per share, 4.4% of the $5.72 share price, or 44.3% annualised if you repeat it.
- What is the break-even on a SNAP covered call?
- Selling the $6.00 call against stock bought at $5.72 breaks even at $5.47 — the share price less the premium. Below that the premium no longer covers the loss on the shares.
- What happens if SNAP closes above the strike?
- The shares are called away at $6.00. Total return is 9.3%: the premium plus the move from $5.72 up to the strike. Gains above the strike belong to the buyer.
More on SNAP
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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.