How to Screen for Covered Calls in Fidelity Active Trader Pro: Step-by-Step Guide

The Short Answer: Here Is How to Do It

To screen for covered calls in Fidelity Active Trader Pro, open the platform, go to Research & News → Screeners → Options Screener, then filter by strategy type (Covered Call), set your delta, expiration, and premium targets, and sort results by annualized yield. The whole process takes about five minutes once you know where the controls are. This guide walks you through every click, then shows you a live example using Apple (AAPL) so you can see real numbers.

What You Need Before You Start

Active Trader Pro is Fidelity's free downloadable desktop platform. You need a Fidelity brokerage account and options trading approval at least at Level 1 (covered calls). If you have not applied yet, log in to Fidelity.com, go to Accounts & Trade → Account Features → Brokerage & Trading → Options, and submit the application. FINRA Rule 2360 requires brokers to collect information about your experience and financial situation before granting options access — Fidelity is following that rule, not being difficult.

You also need to already own at least 100 shares of any stock you plan to write calls against, or be willing to buy them at the same time. Covered calls are not naked calls. The shares are your collateral.

Opening the Options Screener: Step by Step

Step 1 — Launch Active Trader Pro and log in.

Step 2 — In the top menu bar, click Research & News. From the dropdown, choose Screeners, then select Options Screener. A new tab opens inside the platform.

Step 3 — In the Strategy drop-down near the top of the screener, select Covered Call. This pre-loads a set of relevant filters and removes irrelevant ones like put spreads.

Step 4 — Set your Universe. Click the Stocks button and choose either S&P 500 or All US Equities. For beginners, S&P 500 keeps you in liquid names with tighter bid-ask spreads.

Step 5 — Apply the core filters listed in the next section.

Step 6 — Click Run Screener (blue button, top right). Results appear in the table below. You can sort any column by clicking its header.

Step 7 — Click any ticker in the results to open its options chain directly. From there you can review the specific contract and, when ready, click Trade to route the order.

Which Filters Actually Matter — and What Numbers to Use

Not every filter in the screener is worth your time. Here are the six that move the needle for covered-call sellers.

**Days to Expiration (DTE): 21–45.** This range captures the steepest part of theta decay — the rate at which an option loses time value — without locking up your shares for months. The Options Industry Council (OIC) educational materials consistently point to the 30-45 DTE window as the sweet spot for premium sellers.

**Delta: 0.20–0.40.** Delta approximates the probability that the option expires in the money and your shares get called away. A delta of 0.30 means roughly a 30% chance of assignment. Lower delta = more room for the stock to run, less premium. Higher delta = more premium, more assignment risk. Stay in this band until you have a feel for the trade-off.

**Bid-Ask Spread: under $0.15.** Wide spreads eat your profit before you even open the trade. If the bid is $0.80 and the ask is $1.20, you are giving up $0.40 per share ($40 per contract) just on the fill. Stick to liquid names.

**Open Interest: at least 500 contracts.** Low open interest means few other traders are in that contract. You may struggle to exit early if the stock moves against you.

**Implied Volatility Rank (IVR): 30 or higher.** IVR compares current implied volatility to the past 52-week range. An IVR above 30 means options are priced richer than usual — you collect more premium for the same risk. Fidelity displays IVR in the options chain view; you can also add it as a column in the screener.

**Annualized Premium Yield: 10%–25%.** Fidelity calculates this automatically. It shows what you would earn if you repeated the trade every cycle for a year. Below 10% often is not worth the assignment risk. Above 25% usually signals that the market expects bad news — earnings, litigation, a product recall. Treat very high yields as a warning sign, not a gift.

Worked Example: Writing a Covered Call on AAPL

Let's say it is mid-July and AAPL is trading at $213.50. You own 100 shares. You run the screener and AAPL appears in the results. You click through to the options chain and look at the August 16 expiration — 32 days out, squarely in the 21-45 DTE window.

You find the $220 strike call (roughly $6.50 out of the money, about 3% above current price).

- Bid: $2.15 | Ask: $2.20 | Delta: 0.28 | Open Interest: 4,200

You sell 1 contract (100 shares) at the bid of $2.15. Premium collected: $215 (before commissions).

Annualized yield: ($2.15 ÷ $213.50) × (365 ÷ 32) = roughly 11.5%.

Three outcomes at expiration:

1. AAPL closes below $220. The call expires worthless. You keep the $215 and your 100 shares. You can write another call next cycle.

2. AAPL closes above $220. Your shares are called away at $220. You receive $22,000 for the shares plus keep the $215 premium. Your effective sale price is $222.15. If you wanted to keep the shares, you would need to buy back the call before expiration — at a cost.

3. AAPL drops sharply, say to $195. The call expires worthless and you keep the $215, but your shares are now worth $1,850 less than when you sold the call. The premium cushions the loss but does not eliminate it. This is the core risk of covered calls: you cap your upside but you do not cap your downside.

Note on taxes: The IRS treats covered call premiums as short-term capital gains in most cases. If the call is a "qualified covered call" as defined under IRS rules, it may affect the holding period of your underlying shares. Canadian investors should check CRA guidance on option premiums, which are generally treated as capital gains or income depending on your trading frequency. Neither Fidelity nor this article provides tax advice — consult a tax professional.

Risks You Should Understand Before Your First Trade

Covered calls are often described as conservative, and compared to buying naked options they are. But they carry real risks that belong front and center, not in fine print.

**You can still lose money on the stock.** The premium you collect is fixed. If AAPL drops $30, your $215 premium covers $2.15 of that loss. The rest comes out of your pocket. Covered calls do not protect you from a bear market.

**You give up big upside moves.** If AAPL announces a blowout quarter and jumps to $240, your shares get called away at $220. You miss $20 per share of gains above the strike. Over time, repeatedly capping your upside in a rising stock can meaningfully reduce your total return compared to just holding.

**Early assignment is possible.** American-style options (which is what equity options in the US are) can be exercised any time before expiration. This is rare for out-of-the-money calls but can happen around ex-dividend dates. The OIC explains this risk in detail in its free educational materials at theocc.com.

**Earnings risk.** If your stock reports earnings during the life of the call, implied volatility will spike before the announcement and collapse after. Selling a call right before earnings can look attractive because premiums are high — but the stock can move 10-15% in either direction overnight. Many experienced covered-call writers skip the cycle that straddles an earnings date.

**Liquidity risk.** If you need to exit the position early — to buy back the call and free your shares — a wide bid-ask spread or low open interest can make that expensive. This is why the screener filters for spread and open interest matter.

Saving Your Screener and Setting Alerts

Once you have dialed in your filters, save the screener so you do not have to rebuild it each week. In Active Trader Pro, click Save Screener (top right of the screener tab), give it a name like "CC Weekly Scan", and it will appear in your saved screeners list every time you open the platform.

You can also set price alerts on individual tickers. Right-click any stock in your watchlist, choose Set Alert, and configure a trigger — for example, alert you if AAPL moves more than 2% in a day. A sharp move in the underlying is often your cue to check whether you want to roll, close, or hold your covered call position.

Fidelity also offers a mobile app where you can monitor open positions, but the full Options Screener with all filters is only available in the desktop Active Trader Pro platform as of this writing. Check Fidelity's platform release notes for updates.

Does Fidelity Active Trader Pro have a built-in covered call screener?

Yes. Active Trader Pro includes an Options Screener under Research & News → Screeners that has a dedicated Covered Call strategy filter. It lets you set delta, days to expiration, implied volatility rank, and other parameters, then sorts results by annualized premium yield. The platform is free to download for any Fidelity brokerage account holder.

What delta should I use when screening for covered calls?

Most covered-call sellers target a delta between 0.20 and 0.40 on the short call. A delta of 0.30 means roughly a 30% probability that the option expires in the money and your shares get called away. Lower delta gives you more room for the stock to rise but pays less premium; higher delta pays more but increases assignment risk.

How many days to expiration is best for covered calls?

The 21-to-45 day window is the most commonly cited range among premium sellers, and the Options Industry Council (OIC) highlights it in its educational materials. Time decay, measured by theta, accelerates most in the final 30 days of an option's life, which means you collect premium faster in this window. Going much shorter than 21 days leaves little room to adjust if the stock moves.

Will selling covered calls affect the tax treatment of my shares?

It can. The IRS has specific rules around "qualified covered calls" that may suspend the holding period of your underlying shares, which matters if you are trying to qualify for long-term capital gains treatment. Canadian investors should review CRA guidance, as option premiums may be treated as capital gains or income depending on trading frequency. Always consult a qualified tax professional before trading options in a taxable account.

What happens if my covered call gets assigned early?

Early assignment means the option buyer exercises before expiration and your 100 shares are sold at the strike price. You keep the premium you collected, and you receive the strike price for your shares. Early assignment on out-of-the-money calls is uncommon but can happen around ex-dividend dates; the OIC explains the mechanics in its free options education resources.

Can I screen for covered calls on ETFs like SPY in Active Trader Pro?

Yes. SPY is one of the most liquid options markets in the world, with extremely tight bid-ask spreads and massive open interest, making it a popular choice for covered-call writers. In the Active Trader Pro screener, simply type SPY into the symbol field or include ETFs in your universe filter. Keep in mind that SPY options are European-style settlement for the standard contracts, which means no early assignment risk, unlike most individual stock options.