XLU Covered Calls: Premium Income for Utilities Select SPDR
The Utilities Select SPDR ETF tracks regulated utilities. Stacking covered call premiums on top of utility dividends creates a uniquely stable income stream even at the lowest-IV sector.
What XLU shares could pay in covered call premium
The Utilities Select SPDR ETF tracks regulated utilities. Stacking covered call premiums on top of utility dividends creates a uniquely stable income stream even at the lowest-IV sector.
Covered Call Pro ranks live XLU 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.
XLU covered call FAQ
How much premium does a XLU covered call pay?
Premiums change daily with Utilities Select SPDR's stock price and implied volatility. The Covered Call Pro screener ranks live XLU strikes by premium-per-day so you can see exactly what your shares could pay right now.
Do I need 100 shares of XLU to sell a covered call?
Yes. One options contract covers 100 shares, so selling one covered call on XLU 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 XLU?
The main trade-off is capped upside: if Utilities Select SPDR 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.