SPY Covered Calls: Premium Income for SPDR S&P 500 ETF
SPY tracks the S&P 500 index. The most liquid options market in the world, making it the safest and most accessible covered call vehicle.
What SPY shares could pay in covered call premium
SPY tracks the S&P 500 index. The most liquid options market in the world, making it the safest and most accessible covered call vehicle.
Covered Call Pro ranks live SPY 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.
SPY covered call FAQ
How much premium does a SPY covered call pay?
Premiums change daily with SPDR S&P 500 ETF's stock price and implied volatility. The Covered Call Pro screener ranks live SPY strikes by premium-per-day so you can see exactly what your shares could pay right now.
Do I need 100 shares of SPY to sell a covered call?
Yes. One options contract covers 100 shares, so selling one covered call on SPY 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 SPY?
The main trade-off is capped upside: if SPDR S&P 500 ETF 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.
Related covered call stocks
- QQQ (Invesco QQQ) covered calls
- IWM (iShares Russell 2000) covered calls
- DIA (SPDR Dow Jones ETF) covered calls
- XLF (Financial Select SPDR) covered calls
- XLE (Energy Select SPDR) covered calls
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Educational information only — not investment advice. Options involve risk, including capped upside and full downside exposure to the underlying stock.