Choosing a strike for the call

Shared workspace on Qwidgets tracking prediction markets with data from Kalshi, Polymarket, and more. Live prices, candlestick charts, order books, and historical analytics for every event and market on this page.

Markets in this workspace

Three covered calls on XLF, all expiring November 6, 2026, at strikes closer to and further from the current price. The underlying was chosen to illustrate the idea; it isn't a recommendation. Quotes are delayed. Contracts last selected September 29, 2026.

Closer to the current price, the call pays more and caps the shares sooner, and they're more likely to be called away. Further out, it pays less and leaves more room to rise. The chain above shows each strike's delta, a rough stand-in for the chance the call finishes in the money.

On the chain, switch to a later expiration and see how the premium at the same delta changes. Nothing you change here is saved.

Read the lesson: Choosing strikes and expirations.