What are the best stocks for covered calls in 2026?

The best covered call stocks share four traits: deep options liquidity (tight spreads, high open interest), moderate implied volatility (roughly 25–60%), a price you can comfortably collateralize, and a business you'd be happy to keep holding. Liquid large caps and accessible names like Apple (AAPL), AMD, Ford (F), Palantir (PLTR), and JPMorgan (JPM) are common 2026 examples across the low-IV-to-high-IV spectrum — but always confirm current IV, the next earnings date, and your own conviction before writing a call.

What IV percentile is best for covered calls?

Most premium sellers look for IV percentile above 30 and below 70. Below 30, premiums are thin relative to the capital tied up; above 70, the stock is usually too volatile for a comfortable hold and assignment risk climbs. Checking IV percentile or IV rank tells you whether current implied volatility is high relative to the stock's own history.

Are SPY and QQQ good for covered calls?

SPY and QQQ have the most liquid options in the market, but their implied volatility is often so low that premiums barely clear commissions on small accounts. They suit conservative, larger accounts that prioritize reliability over yield. Traders chasing richer premium usually prefer moderate-to-high-IV single names or higher-IV sector ETFs instead.

Should I sell covered calls on dividend stocks?

Yes — collecting a dividend and premium from the same shares stacks two income streams. Just time your strike and expiration around the ex-dividend date: deep in-the-money calls near ex-div carry higher early-assignment risk because the call holder may exercise to capture the dividend.

7 Best Stocks for Covered Calls in 2026 (Updated Monthly)

Not every stock makes a good covered call candidate. The best stocks for selling covered calls have high options liquidity, moderate implied volatility, and stable-enough price action that you're comfortable holding through dips. This guide breaks down the five characteristics to screen for, a quick-compare table of 2026 candidates, and shortlists by what premium sellers actually search for — dividends, weekly options, and high IV.

Last reviewed June 2026. We refresh this list monthly as implied-volatility regimes and earnings calendars shift — the screening criteria below matter far more than any single ticker.

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What Makes a Good Covered Call Stock?

Options liquidity. Tight bid/ask spreads and high open interest mean you get fair pricing and can exit rolls quickly. Illiquid options chains lead to slippage that eats into your premium.
Moderate IV (25–60%). Too low and premiums aren't worth selling. Too high and the stock is likely to move violently — increasing assignment risk and unrealized losses.
Fundamental conviction. You must be willing to hold this stock for months. Covered calls don't protect you from a 30% drawdown — they just provide a small buffer.
Weekly expirations available. More expiration choices means more flexibility to fine-tune your DTE and strike selection.
Dividend-paying is a bonus. Collecting dividends AND premiums maximizes income from the same capital.

Best Covered Call Stocks for 2026 at a Glance

Educational examples, not investment recommendations. IV ranges are typical, not live — always confirm current implied volatility, the next earnings date, and liquidity before writing a call.

Ticker	Typical IV	Approx. price	Dividend	Best for
AAPL	20–35%	$150+	Yes	Conservative, reliable premium
JPM	20–35%	$150+	Yes	Blue-chip, channel-bound
AMD	35–55%	Mid-cap range	No	Richer premium, watch earnings
F	30–45%	$10–$14	Yes	Small accounts, the wheel
PLTR	40–70%	Volatile	No	Aggressive, high-IV premium

5 Covered Call Stock Ideas for 2026

These are educational examples, not investment recommendations. Always do your own research.

Note: a few of the names below trade above $150, which means one covered-call contract ties up $15,000+ in capital. If that's a deal-breaker, the poor man's covered call (PMCC) uses a deep-ITM LEAPS as a stock substitute and runs the same playbook at roughly a third of the capital outlay — see which names work best in our best stocks for the PMCC guide.

1. Apple (AAPL)

The gold standard for covered call writing. Extremely liquid options, weekly expirations, moderate IV (typically 20–35%), and a dividend. AAPL tends to trade in ranges between product cycles, making it ideal for premium collection. The downside: IV can be low, so premiums are modest. Best for conservative sellers targeting 1–1.5% monthly. Run the numbers on the live AAPL covered call calculator.

2. AMD (AMD)

Higher IV than AAPL (typically 35–55%) means richer premiums. AMD has excellent options liquidity and tends to have strong support levels that make strike selection more predictable. The risk: AMD can move 5–10% on earnings or sector rotation, so avoid selling through earnings dates. See the AMD covered call calculator.

3. Ford (F)

A low share price ($10–$14 range) makes Ford accessible for smaller accounts. One put or covered call requires only $1,000–$1,400 in capital. IV is moderate (30–45%), options are liquid, and there's a dividend. Ford is a popular wheel strategy candidate.

4. Palantir (PLTR)

One of the highest-IV names in the large-cap space (40–70%). Premiums are rich, and the stock has a devoted holder base that tends to buy dips. The risk: PLTR can move sharply on government contract news or earnings. Best suited for aggressive premium sellers comfortable with higher volatility.

5. JPMorgan Chase (JPM)

A blue-chip financial with moderate IV (20–35%), strong dividends, and rock-solid options liquidity. JPM tends to trade in a channel, making it excellent for selling calls 5–10% OTM with 30-day expirations. Lower premium yield but high reliability.

Best Dividend Stocks for Covered Calls

If you want to stack a dividend on top of your premium, prioritize names with a reliable payout and liquid options: AAPL, JPM, and Ford all qualify, as do dividend-heavy blue chips like KO, VZ, and PFE. The catch is ex-dividend timing: a deep in-the-money call near the ex-div date carries elevated early-assignment risk, because the call holder may exercise to capture the dividend. Sell out-of-the-money and check the ex-dividend calendar before you write. For the full ranked list, see our best dividend stocks for covered calls.

Best Stocks for Weekly Covered Calls

Weekly options let you compound premium faster and react to news without committing a full month. The best weekly covered call stocks are the highest-liquidity names — SPY, QQQ, AAPL, AMD, NVDA, TSLA — where the weekly chains are deep enough to roll without slippage. Weeklies come with a trade-off: more decisions, higher gamma risk into expiration, and commissions that add up on small accounts. Most sellers split the difference at 7–14 DTE rather than true zero-DTE. See the full breakdown in our best stocks for weekly covered calls.

Best High-IV Stocks for Covered Calls

Chasing the fattest premiums means accepting bigger swings. High-IV covered call candidates with liquid options include PLTR, AMD, COIN, MSTR, and TSLA. The discipline that keeps high-IV writing profitable: sell further out of the money to widen your buffer, size smaller, and use IV rank or IV percentile to confirm the premium is actually rich relative to the stock's own history — not just high in absolute terms. For the full ranked list, see our best high-IV stocks for covered calls.

Screening for Covered Call Candidates

Rather than picking stocks manually, use a screener that filters by delta, IV percentile, DTE, and premium yield. The free CoverEdge covered call screener ranks the highest-yielding covered calls across 200+ tickers and refreshes every few minutes during market hours — so you can find setups that match the criteria above without scanning chains by hand. Inside CoverEdge, AI-enhanced analysis layers on technical signals (RSI, trend) and news sentiment for you to weigh before you trade.

Prefer a pre-filtered view? Jump straight to the high-IV screener (richest premium), the under-$50 screener (small accounts), or the weekly screener (near-term setups) — each narrows the live ranked list to one criterion.

What to Avoid

Meme stocks. GME, AMC — extreme IV but equally extreme risk of gap moves.
Pre-revenue biotech. Binary events (FDA approvals) can wipe out months of premium in one session.
Ultra-low-IV ETFs. SPY and QQQ have liquid options but IV is often so low that premiums barely cover commissions on small accounts.

Best Stocks for Covered Calls in 2026 (Ranked & Updated)