SQQQ Covered Call
Every out-of-the-money SQQQ 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 $42.00 strike at 6.3% over 36 days.
Open interest and pricing as of the close on 2026-09-16. Recomputed every morning before the open.
SQQQ covered call candidates — Oct 23, 2026, 36 days out
Strikes are picked by distance from the $40.61 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 |
|---|---|---|---|---|---|---|---|
| $42.00 | 3.4% | $2.55 | 6.3% | 63.8% | $38.06 | 9.7% | 21 |
| $42.50 | 4.7% | $1.93 | 4.8% | 48.2% | $38.68 | 9.4% | 37 |
| $44.50 | 9.6% | $2.05 | 5.0% | 51.2% | $38.56 | 14.6% | 0 |
What the $42.00 call pays at expiration
One illustrative strike — the richest premium in the table — against 100 shares bought at $40.61. Profit caps at $394.50 if SQQQ finishes above $42.00; below $38.06 the premium stops covering the loss on the stock.
| Stock at expiration | Profit / loss per share | On 100 shares |
|---|---|---|
| $30.46 | $-7.60 | $-759.75 |
| $33.00 | $-5.06 | $-505.94 |
| $35.53 | $-2.52 | $-252.13 |
| $38.07 | +$0.02 | +$1.69 |
| $40.61 | +$2.55 | +$255.50 |
| $43.15 | +$3.95 | +$394.50 |
| $45.69 | +$3.95 | +$394.50 |
| $48.22 | +$3.95 | +$394.50 |
| $50.76 | +$3.95 | +$394.50 |
When a covered call fits SQQQ
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 SQQQ 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 SQQQ loaded.
Questions
- What does a SQQQ covered call pay right now?
- The $42.00 call expiring Oct 23, 2026 (36 days out) collects $2.55 per share, 6.3% of the $40.61 share price, or 63.8% annualised if you repeat it.
- What is the break-even on a SQQQ covered call?
- Selling the $42.00 call against stock bought at $40.61 breaks even at $38.06 — the share price less the premium. Below that the premium no longer covers the loss on the shares.
- What happens if SQQQ closes above the strike?
- The shares are called away at $42.00. Total return is 9.7%: the premium plus the move from $40.61 up to the strike. Gains above the strike belong to the buyer.
More on SQQQ
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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.