CFU Covered Call Scanner

A covered call scanner for any US stock or ETF

Enter a ticker and the scanner checks the listed options to find one covered call that fits CFU's rules: the expiry, the strike, the premium at the bid, the breakeven and whether earnings fall before expiry.

You also get a price chart with the strike and breakeven, a profit and loss chart at expiry, and the exact order to place, whether you already own the shares or not.

It works as a covered call screener for one ticker and as a covered call calculator: choose any listed strike or expiry and the premium, the breakeven and the returns if the stock is unchanged or called away all update.

CFU's rules for choosing the call

Expiry

21 to 45 days out, aim for 35

Enough time for the premium to be worth selling, short enough that time decay works for you.

Strike

Near 0.25 delta, between 0.20 and 0.30

Leaves room for the stock to rise before your shares are called away.

Liquidity

Bid $0.05 or more, open interest 100 or more, spread within 15% of mid or $0.05 during market hours

An option you can actually sell near the quoted price. After the close, closing quotes sit wider, so spreads up to 30% of mid or $0.10 pass.

Earnings

Ends before the next report

Keeps the earnings gap out of the trade. When it cannot, the page flags it in red. ETFs have none.

Covered call questions

What is a covered call?

You own 100 shares of a stock and sell one call option against them. You collect the premium now. If the stock finishes above the strike at expiry, your shares are sold at the strike. If it finishes below, the call expires and you keep both the shares and the premium.

How does the scanner choose a call?

It looks at expiries 21 to 45 days out and aims for 35, then looks for a strike near 0.25 delta, between 0.20 and 0.30. The option has to trade: a bid of at least $0.05, open interest of at least 100 and, during market hours, a bid-ask spread within 15% of the mid price or $0.05 a share. After the close, results use closing quotes, which sit wider, so the spread may be up to 30% of the mid price or $0.10 a share. The expiry should end before the company's next earnings report, so when a report is coming it can choose an expiry as short as 7 days. When that is not possible, the page flags the earnings in red. If nothing fits in 21 to 45 days, it looks out as far as 64 days.

What does "Return if stock unchanged" mean?

It is what you make if the stock is at today's price on expiry day, measured against your net cost, which is the stock price minus the premium. For an out-of-the-money call that is the premium you keep. For an in-the-money call the shares are called away, so it counts only the time value in the premium.

What does "Return if shares called away" mean?

It is what you make if the stock finishes at or above the strike and your shares are sold at the strike: the strike minus your net cost, divided by your net cost. It is the most the trade can make.

Can I choose a different expiry or strike?

Yes. Choose any listed expiry and any strike, including in-the-money strikes for more downside protection. The charts, the order tickets and the rule checks update for your choice, and the panel beside them shows how it measures up against CFU's rules.

Why avoid earnings?

A stock can gap up or down on its earnings report. Choosing an expiry that ends before the report keeps that event out of the trade. A report that falls within a week after expiry is flagged but allowed. ETFs have no earnings reports of their own.

Why are premiums shown at the bid?

The bid is the price you could sell at when the quote was taken, so the premium shown is one you could actually collect, not a hopeful midpoint.

How current are the prices?

Every result shows the time of its option quotes. During market hours stock prices are delayed 15 minutes, and quotes move after they are taken, so check a live quote before you place an order.

Is the covered call scanner free?

Yes. It is free to use, with no sign-up. It is for education only and is not financial advice.

New to the terms? The options glossary explains delta, open interest, assignment and more.