TSM Covered Call
Every out-of-the-money TSM 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 $430.00 strike at 3.2% over 36 days.
Open interest and pricing as of the close on 2026-09-16. Recomputed every morning before the open.
TSM covered call candidates — Oct 23, 2026, 36 days out
Strikes are picked by distance from the $417.72 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 |
|---|---|---|---|---|---|---|---|
| $430.00 | 2.9% | $13.48 | 3.2% | 32.7% | $404.25 | 6.2% | 604 |
| $440.00 | 5.3% | $9.93 | 2.4% | 24.1% | $407.80 | 7.7% | 132 |
| $460.00 | 10.1% | $5.28 | 1.3% | 12.8% | $412.45 | 11.4% | 41 |
What the $430.00 call pays at expiration
One illustrative strike — the richest premium in the table — against 100 shares bought at $417.72. Profit caps at $2,575.50 if TSM finishes above $430.00; below $404.25 the premium stops covering the loss on the stock.
| Stock at expiration | Profit / loss per share | On 100 shares |
|---|---|---|
| $313.29 | $-90.96 | $-9,095.50 |
| $339.40 | $-64.85 | $-6,484.75 |
| $365.51 | $-38.74 | $-3,874.00 |
| $391.61 | $-12.63 | $-1,263.25 |
| $417.72 | +$13.48 | +$1,347.50 |
| $443.83 | +$25.75 | +$2,575.50 |
| $469.94 | +$25.75 | +$2,575.50 |
| $496.04 | +$25.75 | +$2,575.50 |
| $522.15 | +$25.75 | +$2,575.50 |
When a covered call fits TSM
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 TSM 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 TSM loaded.
Questions
- What does a TSM covered call pay right now?
- The $430.00 call expiring Oct 23, 2026 (36 days out) collects $13.48 per share, 3.2% of the $417.72 share price, or 32.7% annualised if you repeat it.
- What is the break-even on a TSM covered call?
- Selling the $430.00 call against stock bought at $417.72 breaks even at $404.25 — the share price less the premium. Below that the premium no longer covers the loss on the shares.
- What happens if TSM closes above the strike?
- The shares are called away at $430.00. Total return is 6.2%: the premium plus the move from $417.72 up to the strike. Gains above the strike belong to the buyer.
More on TSM
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.