COST Covered Calls: Premium Income for Costco
Costco Wholesale operates membership warehouse clubs. Consistent growth and moderate IV make it a reliable premium source.
What COST shares could pay in covered call premium
Costco Wholesale operates membership warehouse clubs. Consistent growth and moderate IV make it a reliable premium source.
Covered Call Pro ranks live COST call options by premium-per-day — strike, expiry, premium, and annualized yield — with illiquid chains filtered out. Run the live screener to see today's numbers.
COST covered call FAQ
How much premium does a COST covered call pay?
Premiums change daily with Costco's stock price and implied volatility. The Covered Call Pro screener ranks live COST strikes by premium-per-day so you can see exactly what your shares could pay right now.
Do I need 100 shares of COST to sell a covered call?
Yes. One options contract covers 100 shares, so selling one covered call on COST requires owning at least 100 shares. If you own fewer, the position would not be "covered."
What is the risk of selling covered calls on COST?
The main trade-off is capped upside: if Costco rises above your strike price by expiration, your shares can be called away at the strike. You keep the premium either way, but you give up gains beyond the strike. You also keep full downside exposure to the stock itself. This page is educational information, not investment advice.
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Educational information only — not investment advice. Options involve risk, including capped upside and full downside exposure to the underlying stock.