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Best strikes for HII covered calls — top pick $430 with 25.1% annualized return.
Huntington Ingalls Industries — Top covered call setups ranked by yield and downside protection
Huntington Ingalls Industries (HII) is a Industrials stock with actively traded listed options. Among current candidates, the strongest income setup sits at the $430 strike with 29 days to expiration. IV Rank 43% is 6pp above the Industrials sector median of 37%. This setup offers higher income potential, but caps upside at the strike. HII wheel strategy.
Strike Placement
25.1% ann.Ranked #1 of 4 contracts by CC Score — balancing call yield, downside protection, and liquidity.
This is ★ Top Ranked of 4 contracts across 1 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 |
|---|---|---|---|
| $430★ TOP⚠️ Spans earnings | $7.85 | 25.1% | 57 |
| $420⚠️ Spans earnings | $10.40 | 33.2% | 56 |
| $440⚠️ Spans earnings | $5.85 | 18.7% | 55 |
| $410⚠️ Spans earnings | $14.35 | 45.8% | 55 |
*Annualized yield assumes hold to expiration with no early assignment. Actual results may vary.
Quantitative screening, not investment advice. Verify with your broker. Disclaimer
Huntington Ingalls Industries currently offers a covered call at the $430 strike with 25.1% annualized return over 29 days. This represents a solid income opportunity for shareholders looking to generate yield on their position. The 9.1% distance to strike provides cushion against early assignment. Verify bid-ask spreads before entering — wider spreads can reduce the practical value of this setup.
The bid-ask spread is 19.1% on the top-ranked strike with open interest of 12. 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 Huntington Ingalls Industries 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 Huntington Ingalls Industries is the $430 strike expiring 2026-05-15 (29 DTE), offering 25.1% annualized return with a delta of 0.27. It earns a CC Score of 57 out of 100. Data is updated daily after market close.
For Huntington Ingalls Industries, 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 Huntington Ingalls Industries.
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 Huntington Ingalls Industries, 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 Huntington Ingalls Industries rallies sharply, you are obligated to sell at the strike price and miss gains above it. At the current top-ranked $430 strike (9.1% 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 19.1%, 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.
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