TLT Covered Call
Every out-of-the-money TLT call expiring Sep 30, 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 $83.00 strike at 0.2% over 13 days.
Open interest and pricing as of the close on 2026-09-16. Recomputed every morning before the open.
TLT covered call candidates — Sep 30, 2026, 13 days out
Strikes are picked by distance from the $80.88 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 — 13 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 |
|---|---|---|---|---|---|---|---|
| $83.00 | 2.6% | $0.15 | 0.2% | 5.0% | $80.74 | 2.8% | 48,698 |
| $85.00 | 5.1% | $0.04 | 0.0% | 1.2% | $80.85 | 5.1% | 49,986 |
| $89.00 | 10.0% | $0.01 | 0.0% | 0.3% | $80.87 | 10.1% | 3,819 |
What the $83.00 call pays at expiration
One illustrative strike — the richest premium in the table — against 100 shares bought at $80.88. Profit caps at $226.50 if TLT finishes above $83.00; below $80.74 the premium stops covering the loss on the stock.
| Stock at expiration | Profit / loss per share | On 100 shares |
|---|---|---|
| $60.66 | $-20.08 | $-2,007.50 |
| $65.72 | $-15.02 | $-1,502.00 |
| $70.77 | $-9.97 | $-996.50 |
| $75.82 | $-4.91 | $-491.00 |
| $80.88 | +$0.15 | +$14.50 |
| $85.94 | +$2.27 | +$226.50 |
| $90.99 | +$2.27 | +$226.50 |
| $96.04 | +$2.27 | +$226.50 |
| $101.10 | +$2.27 | +$226.50 |
When a covered call fits TLT
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 TLT 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 TLT loaded.
Questions
- What does a TLT covered call pay right now?
- The $83.00 call expiring Sep 30, 2026 (13 days out) collects $0.15 per share, 0.2% of the $80.88 share price, or 5.0% annualised if you repeat it.
- What is the break-even on a TLT covered call?
- Selling the $83.00 call against stock bought at $80.88 breaks even at $80.74 — the share price less the premium. Below that the premium no longer covers the loss on the shares.
- What happens if TLT closes above the strike?
- The shares are called away at $83.00. Total return is 2.8%: the premium plus the move from $80.88 up to the strike. Gains above the strike belong to the buyer.
More on TLT
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.