COST options — covered call & cash-secured put yields
Costco Wholesale · Consumer Staples — Retail
COST delayed-data snapshot
Top 5 covered-call strikes for COST
Annualized screen yield = (premium ÷ capital at risk) × (365 ÷ DTE). Comparison metric, not a projected annual return. Excludes strikes with OI below 1 or absent bid/ask.
| Strike | Expiration | Bid | Ask | Mid | |Δ| | Vol | OI | Spread% | Cycle yld | Ann screen yld | Data provider |
|---|---|---|---|---|---|---|---|---|---|---|---|
| No qualifying covered-call strikes in the current snapshot. | |||||||||||
Top 5 cash-secured put strikes for COST
Capital at risk for a CSP = strike × 100. Same screen-yield formula; same not-a-forecast caveat.
| Strike | Expiration | Bid | Ask | Mid | |Δ| | Vol | OI | Spread% | Cycle yld | Ann screen yld | Data provider |
|---|---|---|---|---|---|---|---|---|---|---|---|
| No qualifying cash-secured-put strikes in the current snapshot. | |||||||||||
Ranking factors, exclusions, and missing-data handling
- Ranking: contracts are ordered by annualized screen yield, descending. Ties broken by liquidity score.
- Minimum liquidity: strikes with open interest below 1 or absent bid/ask are excluded from the table.
- Pricing input: mid-of-bid-ask, falling back to last trade then day close when bid/ask are stale (after-hours / illiquid strikes).
- Excluded contracts: ITM strikes (we screen OTM only by default), spreads wider than 30% of mid, and strikes outside the 0.10–0.45 delta band.
- Missing-data handling: when Polygon returns no delta for a leg, we fall back to a Black-Scholes-Merton delta computed from spot, strike, DTE, and implied volatility. When IV is also missing, the strike is dropped.
- Why annualized screen yield is not a forecast: it assumes the same premium/strike combination repeats every cycle for a year, ignoring regime changes, IV crush, and post-assignment capital reallocation. Realized returns are typically materially lower. See annualized screen yield.
- Ticker-specific limitations for COST: see the limitations panel further down on this page.
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Top 5 covered-call strikes for COST
Ranked by annualized yield. Updated every 5 minutes during market hours.
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Top 5 cash-secured puts for COST
Sub-spot strikes ranked by annualized return on capital.
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About COST options
Costco Wholesale (COST) is a Consumer Staples — Retail listed company with modest implied volatility — predictable premiums with manageable risk. COST pays a small 0.6% dividend. Dividend-capture early-assignment risk is minimal but worth tracking.
For wheel-strategy traders, COST is an excellent wheel candidate. The modest implied volatility — predictable premiums with manageable risk means cash-secured puts collect meaningful premium, and the underlying business profile (Consumer Staples — Retail) makes it a name many income sellers would be comfortable being assigned at the right strike.
For income-strategy traders, the COST option chain typically supports both conservative (delta around 0.20) and aggressive (delta around 0.35) premium-selling setups. The Delayed Opportunities ranking above scans every active expiration and surfaces the highest-yielding contracts by annualized return.
Income strategies on COST
- Covered calls on COST — if you own COST shares. New to the strategy? Read the full covered-calls guide first.
- Cash-secured puts on COST — if you have cash to deploy and would be comfortable owning COST. See the cash-secured puts guide for mechanics.
- COST wheel strategy — for repeating CSP → assignment → covered call → called-away cycles. The complete wheel-strategy guide covers stock selection and cycle math.
Related tickers
Other Consumer Staples names with similar liquidity profile:
Frequently asked questions
What are the best covered-call strikes for COST right now?
The Top 5 list above ranks every covered-call strike across every upcoming expiration on COST by annualized yield, refreshed every 5 minutes. Click any strike to open the calculator pre-filled with that contract.
Is COST a good wheel-strategy stock?
For wheel-strategy traders, COST is an excellent wheel candidate. The modest implied volatility — predictable premiums with manageable risk means cash-secured puts collect meaningful premium, and the underlying business profile (Consumer Staples — Retail) makes it a name many income sellers would be comfortable being assigned at the right strike.
What delta should I sell on COST?
Most income sellers target a 0.20 to 0.35 delta strike. Conservative sellers stay near 0.20 (lower yield, lower assignment risk). Aggressive sellers go to 0.35 (higher yield, higher assignment risk). With modest implied volatility — predictable premiums with manageable risk, COST works well across this range.
Does COST pay a dividend, and does it affect my covered call?
COST pays a small 0.6% dividend. Dividend-capture early-assignment risk is minimal but worth tracking.