T covered call calculator
Live yields, downside cushion, and ex-dividend assignment warnings for AT&T Inc..
Top 10 T covered call strikes by annualized yield
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How covered calls work on T
A covered call on T means you own 100 shares (or a multiple of 100) and sell someone the right to buy them from you at a higher price (the strike) by a fixed date (the expiration). They pay you cash upfront (the premium). For the full mechanics, strike-selection rules, and rolling playbook, read the complete covered-calls guide.
Three outcomes:
- T stays below the strike at expiry → you keep the premium and the shares.
- T closes above the strike at expiry → your shares are sold at the strike. You realized the upside to the strike plus the premium.
- Early assignment → happens occasionally before ex-dividend dates if the dividend exceeds the call's time value.
T-specific risk considerations
Modest implied volatility — predictable premiums with manageable risk. T pays a substantial 6.7% dividend. This makes early-assignment risk around ex-dividend dates a real consideration for covered-call sellers — if the dividend exceeds the call's remaining time value, expect the call to be exercised early. See our deep-dive on covered calls on dividend stocks for ex-div timing tactics.
How to use the T covered call calculator
- The calculator pre-loads the T live chain. Pick an expiration from the dropdown.
- Pick a strike. The Top 10 list above shows the highest-yielding strikes; you can also browse all strikes manually.
- Enter your cost basis (what you paid for T) so the static and annualized yields reflect your actual cost.
- Read the results: static yield, if-called annualized return, downside cushion, and any ex-dividend assignment warnings.
Related strategies on T
- Cash-secured puts on T — collect premium for the obligation to buy at a lower price
- T wheel strategy — full CC + CSP cycle for compounding income
- T options overview — all strategies, all expirations
Related tickers for covered-call writing
FAQ
How is annualized yield calculated on a T covered call?
Annualized yield = (Premium ÷ Cost basis) × (365 ÷ days to expiration). The calculator also produces an if-called annualized return that bakes in any upside to the strike and dividends collected before expiration.
What's a good delta for a T covered call?
Most T covered-call sellers target 0.20–0.35 delta. Lower delta gives lower yield with reduced assignment risk; higher delta gives more premium with greater chance of being called away. The strike-selection guide walks through the trade-offs in detail.
Should I worry about early assignment on T?
T pays a substantial 6.7% dividend. This makes early-assignment risk around ex-dividend dates a real consideration for covered-call sellers — if the dividend exceeds the call's remaining time value, expect the call to be exercised early. For the full mechanic of when and why short calls get exercised early, see early assignment explained.