Toyota Motor Corporation (TM) Covered Calls
Toyota Motor Corporation is a global automotive leader engaged in the design, manufacture, and sale of a diverse range of passenger cars, trucks, and buses. The company is a pioneer in hybrid technology and operates through an extensive network of manufacturing plants and dealerships across North America, Europe, Asia, and other regions. Toyota also provides financial services and is actively developing advanced mobility solutions, including automated driving and hydrogen fuel-cell technologies.
You can sell covered calls on Toyota Motor Corporation to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for TM (prices last updated Thu 4:16 PM ET):
| Toyota Motor Corporation (TM) Stock Quote | ||||||
|---|---|---|---|---|---|---|
| Last | Change | Bid | Ask | Volume | P/E | Market Cap |
| 241.64 | -1.17 | 240.76 | 246.35 | 223K | 101 | 443 |
| Covered Calls For Toyota Motor Corporation (TM) | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Net Debit | Return If Flat |
Annualized Return If Flat |
|
| Feb 20 | 240 | 4.60 | 241.75 | -0.7% | -28.4% | |
| Mar 20 | 240 | 8.70 | 237.65 | 1.0% | 9.9% | |
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Core Business and Products
Toyota Motor Corporation (TM) is one of the largest and most influential automakers in the world. As of 2026, the company continues to execute its "Multi-Pathway" strategy, which focuses on providing a broad array of powertrain options to meet diverse global infrastructure and consumer needs. This includes internal combustion engines (ICE), hybrid electric vehicles (HEV), plug-in hybrids (PHEV), battery electric vehicles (BEV), and hydrogen fuel-cell vehicles (FCEV).
- Hybrid Leadership: Toyota remains the undisputed leader in hybrid technology. In early 2026, the company launched the fully redesigned, hybrid-only RAV4 and Camry lineups, which have seen record demand due to their balance of fuel efficiency and performance. Toyota’s fifth-generation hybrid system is now standard across most of its North American and European sedans and SUVs.
- Electrification and "Beyond Zero": The company is rapidly expanding its "bZ" (Beyond Zero) series. By 2026, the lineup includes the bZ4X, the new bZ3X compact SUV for urban markets, and the bZ5X three-row crossover. Toyota is also trialing its first solid-state battery platforms in select pilot programs, promising significantly faster charging and longer ranges for future production models.
- Commercial and Hydrogen Solutions: Toyota is a leader in hydrogen fuel-cell technology through its Mirai sedan and its heavy-duty powertrain modules for trucks and buses. In 2026, the company opened its first "Hydrogen Business Hub" in Europe to support the rollout of carbon-neutral logistics and refueling infrastructure.
- Financial and Mobility Services: Through Toyota Financial Services, the company provides a comprehensive suite of auto-related financing and insurance. Additionally, its Woven by Toyota division is developing the "Arene" software platform, a digital operating system for the next generation of software-defined vehicles.
Competitive Landscape
Toyota operates in an industry undergoing a radical technological shift, facing traditional rivals and new tech-driven entrants:
- Full-Line Manufacturers: Toyota’s most direct global rival is Honda Motor, which competes across nearly every consumer category. It also faces fierce competition from Stellantis and General Motors, particularly in the profitable truck and SUV segments.
- EV and Technology Specialists: In the battery-electric space, Tesla remains the primary benchmark for software and charging infrastructure. Toyota also monitors emerging premium electric players like Rivian Automotive and XPENG as they scale their global footprints.
- Luxury and Performance: For its Lexus brand, Toyota competes with Ferrari in the high-performance niche and with Ford (Lincoln) in the luxury utility segment.
Strategic Outlook and Innovation
Entering February 2026, Toyota is focusing on "Agile Manufacturing" to offset rising supply chain costs and trade volatility. A key strategic pillar for the year is the $912 million investment in U.S.-based hybrid component production, ensuring the company can meet the massive domestic demand for gasoline-electric powertrains. Innovation in 2026 is highlighted by the "Mobility AI Platform," a joint venture that integrates seamless cloud communications with AI to provide real-time traffic optimization and advanced safety features. Strategically, the company has maintained industry-leading EBIT margins by avoiding a pure-BEV pivot, instead using its "Multi-Pathway" approach to capture market share in regions where EV adoption has slowed. With a 2026 operating income forecast of 3.4 trillion yen and a continued commitment to stable dividend increases, Toyota remains the resilient anchor of the global automotive sector.
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Want more examples? TLYS Covered Calls | TMDX Covered Calls
