Is Selling Weekly Covered Calls Worth It?
Is Selling Weekly Covered Calls Worth It?
Selling weekly covered calls can generate frequent income, but they often limit upside during strong rallies. Whether they’re worth it depends on volatility, strike selection, and how much growth you’re willing to cap.
They tend to work best in sideways markets and struggle when stocks trend higher.
📊 Example Trade
SPY @ $470
Strike: $475
Premium: $2.15
DTE: 7
In this setup:
You collect short-term premium
Upside is capped above $475
Buy-and-hold benefits more if SPY rallies
🙋♀️ FAQ
Q: Are weekly covered calls better than monthly calls?
A: Not always. Weeklies pay faster but cap upside more often.
Q: Do weekly covered calls beat buy-and-hold?
A: Sometimes in flat markets — usually not during strong uptrends.
Q: When do weekly covered calls make sense?
A: When volatility is high and income matters more than growth.