🎄 Your Holiday Deal Is Here! Enjoy exclusive Christmas savings on our annual plans. click here to claim yours! 🎁
Start for Free

SPDR S&P 500 ETF Trust Covered Calls Options Strategy

LAST 591.15

As of , SPY (SPDR S&P 500 ETF Trust) has 208 Covered Call trade opportunities in the coming three months. For a Covered call trade, you buy 100 shares of SPY and sell one Call option. The return is expected to range from 0.21 — 1.78% until expiration, which is 22.39 — 42.73% annualized. The closest expiration is 2024-12-23 (tomorrow), and the maximum potential profit is $1119.00

Stock Statistics

Exchange Traded Fund Financial 75.79% Elevated
— -2.94% 26.74% — — — — — — — — —

Potential Covered Calls trades

See the results below and sign up to adjust the parameters.

Expiration date Days to expiration Strike Moneyness % Bid Ask Max. profit Return % Return annualized % Breakeven % Delta Open interest Bid-Ask spread
2024-12-24 3 592 0.14 2.41 2.44 3.26 0.41 42.73 -0.41 46.69 759 0.03
2024-12-23 2 592 0.14 1.71 1.76 2.56 0.29 42.41 -0.29 44.97 3,411 0.05
2024-12-27 6 592 0.14 3.97 4.01 4.82 0.68 37.98 -0.67 48.84 1,216 0.04
2024-12-26 5 592 0.14 3.18 3.24 4.03 0.54 35.91 -0.54 48.13 997 0.06
2024-12-27 6 592.5 0.23 3.67 3.72 5.02 0.62 35.10 -0.62 46.89 672 0.05
2024-12-24 3 593 0.31 1.91 1.94 3.76 0.32 33.83 -0.32 40.68 1,462 0.03
2024-12-27 6 593 0.31 3.40 3.44 5.25 0.58 32.50 -0.58 44.91 1,168 0.04
2024-12-31 10 592 0.14 5.34 5.39 6.19 0.91 31.70 -0.90 50.09 3,533 0.05
2024-12-23 2 593 0.31 1.25 1.29 3.1 0.21 30.98 -0.21 37.07 2,469 0.04
2025-01-03 13 592 0.14 6.56 6.62 7.41 1.12 30.35 -1.11 50.75 388 0.06
2024-12-26 5 593 0.31 2.64 2.69 4.49 0.45 29.79 -0.45 43.34 690 0.05
2025-01-03 13 592.5 0.23 6.25 6.31 7.6 1.07 28.90 -1.06 49.52 257 0.06
2024-12-31 10 593 0.31 4.75 4.80 6.6 0.81 28.17 -0.80 47.09 4,279 0.05
2025-01-03 13 593 0.31 5.94 6.00 7.79 1.02 27.45 -1.00 48.26 1,086 0.06
2024-12-27 6 594 0.48 2.87 2.91 5.72 0.49 27.41 -0.49 40.82 2,955 0.04
2025-01-10 20 592 0.14 8.57 8.64 9.42 1.47 26.20 -1.45 51.77 675 0.07
2024-12-24 3 594 0.48 1.46 1.50 4.31 0.25 25.84 -0.25 34.54 1,554 0.04
2025-01-10 20 592.5 0.23 8.26 8.32 9.61 1.42 25.23 -1.40 50.81 470 0.06
2024-12-31 10 594 0.48 4.19 4.24 7.04 0.71 24.82 -0.71 43.97 3,189 0.05
2025-01-03 13 594 0.48 5.36 5.42 8.21 0.92 24.74 -0.91 45.70 524 0.06
2025-01-10 20 593 0.31 7.95 8.01 9.8 1.36 24.27 -1.34 49.84 281 0.06
2024-12-26 5 594 0.48 2.15 2.20 5 0.37 24.24 -0.36 38.41 849 0.05
2025-01-17 27 592 0.14 10.34 10.41 11.19 1.78 23.63 -1.75 52.51 5,043 0.07
2024-12-27 6 595 0.65 2.38 2.42 6.23 0.40 22.71 -0.40 36.59 3,043 0.04
2025-01-10 20 594 0.48 7.34 7.40 10.19 1.26 22.39 -1.24 47.85 386 0.06
See all the results in our screener

* Data is EOD. Click here to sign up and see live data.

Moneyness %
The distance between the stock's last price and the strike.
Max. profit
The Maximum profit (in US $) for the strategy at expiration, using the options MID price. This data point available only for trades with limited profit.
Return %
The return on investment from selling the option.
Return annualized %
Annualized calculation of the return - the ROI from selling the option.
Breakeven %
The breakeven point is the point where the profit and loss of the strategy are equal.
Delta
Delta is the change in the option price for every 1$ move in the underlying symbol. It is also used as a rough estimate of the option probability to expire in the money.
Open interest
Total open interest (also known as open contracts or open commitments) refers to the total number outstanding of derivative contracts that have not been settled. Across all strikes and expirations.
Bid-Ask spread
The difference between the option's ask and the option's bid. The tighter the spread the easier it is the trade.

FAQ

What is a Covered Call?

A Covered Call is an options strategy that owns 100 shares and sells one Call option, usually above the current stock price. This bullish options strategy 'sacrifices' some of the upside of the position to collect premiums and generate an income stream from stocks you own. Covered Calls trades perform best on stocks you are bullish on, but don't expect a significant price increase in the short term. The covered calls strategy also pairs well with dividend-paying stocks.

When looking for trade ideas, you can use our option screener for covered calls with a high probability of profit and annualized return, as well as steady dividends, robust fundamentals, or an excellent score to increase your likelihood of profit and reduce your risk.

What is SPY Implied Volatility (IV)?

Implied volatility (IV) is one of the most critical measures for options traders. It is used to tell us if an option is expensive or cheap. High Implied Volatility is better for Covered Calls trades, while low IV is usually less profitable for Covered Calls.

As of , SPY stock IV is 14.30 and the percentile is 75.79% Elevated.

We've conducted thorough research into the IV, and we see that it is mean-reverting - meaning after a high value, we can expect a lower value in a higher probability (and vice versa). We published our Implied volatility research https://blog.optionsamurai.com/category/implied-volatility in our blog. You can read more there.

What are the benefits of using Covered Calls on SPY stock?

The benefits of using Covered Calls on SPY stock include generating additional income through the premiums received from selling call options, potentially lowering the effective cost basis of the stock, and providing a degree of downside protection in case the stock price declines.

Additionally, you can expect to receive dividends from SPDR S&P 500 ETF Trust if you hold the position on Ex-Date. SPDR S&P 500 ETF Trust gives a dividend yield of 1.19% a year, which we can add to the Covered Call premium we collect

What are the risks associated with the Covered Call strategy?

The risks of using Covered Calls include the possibility of missing out on significant gains if the stock price rises significantly above the strike price, limiting the potential upside. Additionally, if the stock price declines significantly, the premium received may not be sufficient to offset the loss.

How do I select the appropriate strike price and expiration date for Covered Calls on SPY stock?

The selection of strike price and expiration date depends on your specific investment goals and risk tolerance. Generally, a strike price slightly above the current stock price is chosen to provide some buffer room. The expiration date can vary, but it's often a few weeks to a few months out. You can check our option screener for more analysis options.

Are there any tax implications with Covered Calls?

It's important to consult with a tax advisor regarding the tax implications of using Covered Calls. Depending on your jurisdiction, the premiums received and potential gains or losses from the strategy may be subject to specific tax regulations.

How can I monitor the performance of my Covered Calls on SPY stock?

You can track the performance on our Trade log feature or on your broker account. It is important to track both the option price and the stock price to track the Covered Call position accurately.