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Becton Dickinson — Top covered call setups ranked by yield and downside protection
Becton Dickinson (BDX) operates in the Health Care sector and has actively traded listed options. Among current candidates, the strongest income setup sits at the $170 strike with 44 days to expiration. IV Rank at 50% means call premiums are average versus the past year. Moderate yield — shorter DTE or closer strikes could improve returns per cycle. See Wheel Strategy for the full CSP-to-CC cycle.
Strike Placement
11.1% ann.Ranked #1 of 5 contracts by CC Score — balancing call yield, downside protection, and liquidity.
This is ★ Top Ranked of 5 contracts across 2 expirations. ↓ Find it below
CC Score = Income (22%) + Safety (18%) + Liquidity (18%) + Quality (14%) + Event (12%) + IV (8%) + Execution (8%)Annualized return, delta, bid-ask spread, open interest, earnings proximity, IV rank, DTE
VolRadar proprietary composite score using ORATS chain data
CC Score optimizes for income generation, not total return. Covered calls cap upside — stocks that rally strongly will underperform a buy-and-hold approach. Past CC returns do not predict future yields.
Every covered call strike sorted by CC Score. Higher score = better risk-adjusted income potential.
★ = Highest risk-adjusted CC Score across all expirations and strikes.
| Strike | Premium | Ann. Yield* | Score |
|---|---|---|---|
| $160 | $1.65 | 24.3% | 45 |
| $165 | $0.60 | 8.8% | 43 |
| Strike | Premium | Ann. Yield* | Score |
|---|---|---|---|
| $170★ TOP⚠️ Spans earnings | $2.08 | 11.1% | 57 |
| $175⚠️ Spans earnings | $1.30 | 7.0% | 51 |
| $160⚠️ Spans earnings | $5.30 | 28.4% | 50 |
*Annualized yield assumes hold to expiration with no early assignment. Actual results may vary.
Quantitative screening, not investment advice. Verify with your broker. Disclaimer
Becton Dickinson's best covered call currently offers 11.1% annualized at the $170 strike. Premiums are relatively thin in the current IV environment. Shareholders may consider shorter DTE expirations to accelerate theta decay or wait for IV expansion before initiating new covered call positions.
The bid-ask spread is 21.7% on the top-ranked strike with open interest of 485. Wider spreads increase slippage — the difference between the theoretical mid-price and your actual fill. Use limit orders at or near the mid price, avoid market orders, and consider whether the spread erodes a meaningful portion of the premium collected. If fills are consistently poor, look at more liquid expirations or strikes closer to the money.
VolRadar's CC Score ranks every Becton Dickinson covered call opportunity from 0 to 100 across seven weighted dimensions: Income potential (22%), Safety (18%), Liquidity (18%), Underlying Quality (14%), Event Safety (12%), IV Opportunity (8%), and Execution Quality (8%). The score updates daily after market close, reflecting the latest option chain data.
The top-ranked covered call for Becton Dickinson is the $170 strike expiring 2026-05-15 (44 DTE), offering 11.1% annualized return with a delta of 0.24. It earns a CC Score of 57 out of 100. Data is updated daily after market close.
For Becton Dickinson, delta 0.20–0.30 is a common range for covered calls. This gives 70–80% probability of the option expiring worthless while collecting meaningful premium. Lower delta (0.15–0.20) is more conservative, while 0.30–0.40 generates more income but has higher assignment probability.
The CC Score (0–100) ranks covered call opportunities across 7 dimensions: Income potential (22%), Safety (18%), Liquidity (18%), Underlying Quality (14%), Event Safety (12%), IV Opportunity (8%), and Execution Quality (8%). Higher scores mean better risk-adjusted opportunities. Sort by CC Score to find the best strike and expiration combo for Becton Dickinson.
Weekly covered calls (7–14 DTE) offer faster theta decay and more flexibility but require active management. Monthly covered calls (30–45 DTE) balance time premium with less frequent rolling. For Becton Dickinson, current elevated IV makes both viable — weeklies capture the rich premium faster. The CC Score ranks both DTE ranges so you can compare directly.
The primary risk is capped upside: if Becton Dickinson rallies sharply, you are obligated to sell at the strike price and miss gains above it. At the current top-ranked $170 strike (9.8% OTM), any rally beyond that level means you sell shares below market price. To contextualize: covered calls are best suited for sideways-to-mildly-bullish outlooks. If you expect a significant move higher, consider waiting to sell the call or using a wider strike. The CC Score penalizes strikes with elevated event risk to help you avoid the worst setups.
The bid-ask spread on the top strike is 21.7%, which can reduce practical returns. Wide spreads mean you give up a portion of the premium to slippage on entry and exit. Use limit orders — start near the natural price and walk toward mid. If the spread exceeds 10-15% of the premium collected, the execution cost may outweigh the income.
The top-ranked Becton Dickinson covered call has 44 DTE, beyond the typical 30–45 day sweet spot. Longer-dated calls collect more total premium but have slower theta decay per day and more exposure to price moves. Consider whether you want to commit shares for that duration, and compare the annualized yield against shorter expirations in the table.
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