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Estée Lauder Companies (The) — Top covered call setups ranked by yield and downside protection
Estée Lauder Companies (The) (EL) operates in the Consumer Staples sector and has actively traded listed options. Among current candidates, the strongest income setup sits at the $80 strike with 44 days to expiration. IV Rank 57% is 15pp above the Consumer Staples sector median of 42%. This setup offers higher income potential, but caps upside at the strike. See Wheel Strategy for the full CSP-to-CC cycle.
Strike Placement
28.7% ann.Ranked #1 of 12 contracts by CC Score — balancing call yield, downside protection, and liquidity.
This is ★ Top Ranked of 12 contracts across 5 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 |
|---|---|---|---|
| $72 | $1.57 | 93.0% | 54 |
| $74 | $0.82 | 48.7% | 52 |
| $74 | $0.95 | 56.1% | 51 |
| Strike | Premium | Ann. Yield* | Score |
|---|---|---|---|
| $74 | $1.75 | 58.1% | 67 |
| $70 | $2.98 | 98.8% | 65 |
| $73 | $1.95 | 64.8% | 58 |
| Strike | Premium | Ann. Yield* | Score |
|---|---|---|---|
| $70 | $3.90 | 90.1% | 53 |
| Strike | Premium | Ann. Yield* | Score |
|---|---|---|---|
| $75 | $3.23 | 46.3% | 60 |
| $72 | $4.25 | 61.1% | 56 |
| Strike | Premium | Ann. Yield* | Score |
|---|---|---|---|
| $80★ TOP⚠️ Spans earnings | $2.38 | 28.7% | 79 |
| $85⚠️ Spans earnings | $1.50 | 18.1% | 69 |
| $75⚠️ Spans earnings | $3.70 | 44.7% | 68 |
*Annualized yield assumes hold to expiration with no early assignment. Actual results may vary.
Quantitative screening, not investment advice. Verify with your broker. Disclaimer
Estée Lauder Companies (The) currently offers a covered call at the $80 strike with 28.7% annualized return over 44 days. This represents a solid income opportunity for shareholders looking to generate yield on their position. The 16.5% distance to strike provides cushion against early assignment.
VolRadar's CC Score ranks every Estée Lauder Companies (The) 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 Estée Lauder Companies (The) is the $80 strike expiring 2026-05-15 (44 DTE), offering 28.7% annualized return with a delta of 0.28. It earns a CC Score of 79 out of 100. Data is updated daily after market close.
For Estée Lauder Companies (The), 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 Estée Lauder Companies (The).
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 Estée Lauder Companies (The), 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 Estée Lauder Companies (The) rallies sharply, you are obligated to sell at the strike price and miss gains above it. At the current top-ranked $80 strike (16.5% 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 top-ranked Estée Lauder Companies (The) 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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