AMZN Covered Call: Oct 28 $260 Call

Amazon.Com Inc (AMZN). Option quotes as of Oct 16, 2026, 3:59 PM ET. Stock prices are closing prices.

Open AMZN in the interactive scannerCash-Secured Put on AMZN

Profit and loss at expiry

Why this covered call

Why this expiry

CFU's rules chose the Oct 28 expiry, 9 days out.

That is shorter than the usual 21 to 45 days. It is shortened to 9 days to finish before AMZN's earnings on Oct 29 (expected).

A call this short loses value faster and swings harder with the stock. The rules accept that to finish before the report.

With the stock unchanged, a call 21 to 45 days out loses about 3 to 6 percent of its value a day, and its strike sits further from the stock.

Those decay figures are model estimates from Black-Scholes at 30% implied volatility, not predictions.

For this call, the options data puts the decay at about $0.19 a share a day, 10.9% of its value, with the stock unchanged. That is a model estimate, not a prediction.

CFU's rules look for expiries 21 to 45 days out and aim for about 35. They take the monthly when it fits.

They go under 21 days only to finish before an earnings report, and never under 7 days.

Why this strike and delta

The $260 call has a delta of 0.23.

CFU's rules sell a call with a delta between 0.20 and 0.30, as close to 0.25 as a liquid strike allows.

Among the strikes in that band, the rules keep the ones that pass the liquidity checks and take the one closest to 0.25.

Below 0.20 the premium gets thin. Above 0.30 the strike sits close to the stock, and your shares are more likely to be called away.

Near 0.25 the strike leaves room for the stock to rise and still pays a real premium.

Delta is a market-implied estimate drawn from option prices.

The options market prices roughly a 77% chance AMZN finishes below $260 at expiry. That is an estimate, not a prediction.

Earnings

AMZN is expected to report earnings on Oct 29, 1 day after this option expires.

The date is an estimate, and companies sometimes report earlier than expected. Check the date before you trade.

The rules shortened the trade so it finishes before the report.

Macro events before expiry

Fed rate decision on Oct 28, 2026 at 2:00 PM ET. The Fed sets short-term interest rates at this meeting, and a decision or statement that surprises traders can move the whole market.

CFU's method does not change the example for these releases. They are listed so you know they fall inside the trade.

Dividends and early assignment

AMZN has no declared ex-dividend date before this expiry.

Liquidity

The bid is $1.58 and the ask is $1.84, a spread of 15.2% of the midpoint. On closing prices CFU's rules allow up to 30% of the midpoint, or 10 cents on a low-priced option, because spreads widen at the close.

Open interest, the number of these contracts already open, is 398. The rules need at least 100.

The rules also need a bid of at least $0.05.

Your risk

You still own 100 shares. If AMZN falls, you lose on the shares.

The $1.58 premium cushions only the first $1.58 of a drop.

Below the $248.42 breakeven, the position loses $100 for each $1 the stock falls.

If the stock went to zero, you would lose $24,842.

Your upside is capped

Your upside is capped at the $260 strike. If AMZN is above $260 at expiry, your shares are sold at $260.

You keep the premium, but you miss any gain above that price.

Measured from today's prices, the most this trade can make is $1,158.

How the numbers are priced

Every figure on this page uses the $1.58 bid, the price you could sell at when the quote was taken.

The example order starts at the midpoint, $1.71, and walks toward the bid.

AMZN call strikes for Oct 28

Every listed strike near the money for the same expiry, priced at the bid. The highlighted row is the one CFU's rules chose. Grey rows fail a liquidity check.

Example order

I don't own the shares yet

BUY 100 AMZN / SELL TO OPEN 1 AMZN 10/28/26 260.00 CALL
LIMIT: $248.29 net debit (mid)
If not filled: raise $0.01 every 2 min
Ceiling: $248.42 (stock price − call bid). Don't pay more.

This is a buy-write. One order buys the shares and sells the call together.

I already own 100 shares

SELL TO OPEN 1 AMZN 10/28/26 260.00 CALL
LIMIT: $1.71 credit (mid)
If not filled: lower $0.01 every 2 min
Floor: $1.58 (bid). Don't sell for less.

Prices are from Oct 16, 2026, 3:59 PM ET. Recompute from your live quote: start at mid, walk toward the bid, never past it.

Before you sell, ask

• Am I happy selling AMZN at $260?
• Am I happy holding it below $248.42?

These are the two questions CFU asks before any example, for every ticker. If either answer is no, this is not the trade for you.

Other expirations for AMZN

Open one in the interactive scanner to see its strikes, chart and order example.

• Oct 30 · 11 days · weekly
• Nov 6 · 18 days · weekly
• Nov 13 · 25 days · weekly
• Nov 20 · 32 days · monthly
• Nov 27 · 39 days · weekly
• Dec 18 · 60 days · monthly
• Jan 15 · 88 days · monthly
• Feb 19 · 123 days · monthly
• Mar 19 · 151 days · monthly
• Apr 16 · 179 days · monthly
• Jun 17 · 241 days · monthly
• Jul 16 · 270 days · monthly
• Sep 17 · 333 days · monthly
• Dec 17 · 424 days · monthly
• Jan 21 · 459 days · monthly