Real-World Covered Call Examples on Walmart (WMT)
WMT Sample ( I will change and update this section periodically. However, the basic theory is the same regardless of the Stock or Option that you trade.)
Current Stock Price: ~$128 per share (as of May 2026). You own 5,000 shares of WMT (total value ~$640,000).
For these examples, we will only sell covered calls against 1,000 shares (10 contracts). This is conservative sizing. You can scale up responsibly as you gain experience. All examples target ~10–15 Delta calls (roughly 85–90% probability of expiring worthless) in an IVR range of 60–70. If you are in a lower IVR range (learn about IVR and IV click HERE), these numbers can change quite a bit. I will teach you exactly how to find these in our coaching.
1. Short-Term / Monthly Style (38 Days)Expiration: June 18, 2026 (38 DTE)
Call Strike (≈10–12 Delta): $150–$155 range (well above current price)
Realistic Premium Collected: ≈ $0.60 – $0.90 per share (midpoint ~$0.75)
Cash Collected Today (10 contracts): $750
Expected Monthly Income (with rolling): $600 – $900 per cycle Best For: Investors who want regular monthly income and are willing to manage/roll more frequently.
2. Medium-Term (6–7 Months)Expiration: November 20, 2026 (193 DTE)
Call Strike (≈10–12 Delta): $170
Realistic Premium Collected: ≈ $1.05 – $1.35 per share (mid ≈ $1.20)
Cash Collected Today (10 contracts): $1,200
Expected Monthly Income (with rolling): $180 – $250 (you can roll or sell new calls after this expires) Key Advantage: Much higher strike gives your shares significant room to appreciate before being called away. Lower management frequency.
3. Long-Term / Dividend-Style (10–11 Months)Expiration: March 19, 2027 (312 DTE)
Call Strike (≈8–10 Delta): $190
Realistic Premium Collected: ≈ $0.90 – $1.30 per share (mid ≈ $1.10)
Cash Collected Today (10 contracts): $1,100
Expected Monthly Income (with rolling): $90 – $140Key Advantage: True “set it and forget it” approach. Lowest management. Gives the stock the maximum realistic upside room while still collecting a premium upfront.
Important Reality Notes:
The further out in time (and higher the strike), the lower the premium per month but the more upside room your shares have.
Walmart is a lower-volatility blue-chip stock (IV around 30%). In higher IV environments, you will collect more premium for the same delta.
You are capping upside above the call strike. If WMT has a big run, you may get called away and miss further gains (this is the main trade-off of covered calls).
Early assignment is possible (especially near ex-dividend dates), though uncommon on OTM calls.
Many people run a mix — some short-term calls for income on part of their shares and longer-dated calls on the rest for growth + steady premium.
This probability-based, calm approach follows tastytrade principles: sell high-probability premium, manage winners early (50% profit target if you wish, which is standard Tasty Trade mechanics), and/or roll when necessary.
In our coaching sessions, I will show you live option chains, exactly how to choose delta/IVR, when to roll, position sizing rules, and how to build a portfolio that matches your income vs. growth goals.
Example is for educational purposes only. Actual premiums, strikes, and probabilities will vary with market conditions. Trading options involves substantial risk of loss and is not suitable for everyone. This is not financial advice.