TGT Covered Call
Every out-of-the-money TGT 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 2.7% over 36 days.
Open interest and pricing as of the close on 2026-09-16. Recomputed every morning before the open.
TGT covered call candidates — Oct 23, 2026, 36 days out
Strikes are picked by distance from the $154.68 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 | 3.4% | $4.13 | 2.7% | 27.0% | $150.56 | 6.1% | 14 |
| $162.50 | 5.1% | $3.23 | 2.1% | 21.1% | $151.46 | 7.1% | 46 |
| $170.00 | 9.9% | $1.53 | 1.0% | 10.0% | $153.16 | 10.9% | 27 |
What the $160.00 call pays at expiration
One illustrative strike — the richest premium in the table — against 100 shares bought at $154.68. Profit caps at $944.50 if TGT finishes above $160.00; below $150.56 the premium stops covering the loss on the stock.
| Stock at expiration | Profit / loss per share | On 100 shares |
|---|---|---|
| $116.01 | $-34.55 | $-3,454.50 |
| $125.68 | $-24.88 | $-2,487.75 |
| $135.35 | $-15.21 | $-1,521.00 |
| $145.01 | $-5.54 | $-554.25 |
| $154.68 | +$4.13 | +$412.50 |
| $164.35 | +$9.44 | +$944.50 |
| $174.02 | +$9.44 | +$944.50 |
| $183.68 | +$9.44 | +$944.50 |
| $193.35 | +$9.44 | +$944.50 |
When a covered call fits TGT
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 TGT 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 TGT loaded.
Questions
- What does a TGT covered call pay right now?
- The $160.00 call expiring Oct 23, 2026 (36 days out) collects $4.13 per share, 2.7% of the $154.68 share price, or 27.0% annualised if you repeat it.
- What is the break-even on a TGT covered call?
- Selling the $160.00 call against stock bought at $154.68 breaks even at $150.56 — the share price less the premium. Below that the premium no longer covers the loss on the shares.
- What happens if TGT closes above the strike?
- The shares are called away at $160.00. Total return is 6.1%: the premium plus the move from $154.68 up to the strike. Gains above the strike belong to the buyer.
More on TGT
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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.