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Best strikes for MCK covered calls — top pick $900 with 24.3% annualized return.
McKesson Corp. — Top covered call setups ranked by yield and downside protection
McKesson Corp. (MCK) is a Healthcare stock with actively traded listed options. Among current candidates, the strongest income setup sits at the $900 strike with 29 days to expiration. IV Rank 22% is 14pp below the Healthcare sector median of 36%. This setup offers higher income potential, but caps upside at the strike. MCK wheel strategy.
Strike Placement
24.3% ann.Ranked #1 of 7 contracts by CC Score — balancing call yield, downside protection, and liquidity.
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 |
|---|---|---|---|
| $900★ TOP⚠️ Spans earnings | $16.65 | 24.3% | 57 |
| $880⚠️ Spans earnings |
Quantitative screening, not investment advice. Verify with your broker. Disclaimer
McKesson Corp. currently offers a covered call at the $900 strike with 24.3% annualized return over 29 days. This represents a solid income opportunity for shareholders looking to generate yield on their position. The 4.1% distance to strike provides cushion against early assignment.
McKesson Corp.'s IV Rank is 22%, indicating premiums are thinner than usual. In low-IV environments, covered call sellers may need to move closer to the money or use shorter DTE to maintain meaningful yield. Be aware that closer strikes increase assignment probability.
McKesson Corp.'s top CC strike has a delta of 0.35, above the 0.35 threshold. Higher-delta covered calls generate more premium income but face greater assignment probability. If you are comfortable being called away at $900, this strike maximizes income. Otherwise, consider the next OTM strike for more room.
The top-ranked covered call for McKesson Corp. is the $900 strike expiring 2026-05-15 (29 DTE), offering 24.3% annualized return with a delta of 0.35. It earns a CC Score of 57 out of 100. Data is updated daily after market close.
For McKesson Corp., 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 McKesson Corp..
Free embeddable tool: IV Rank Gauge — add live IV data to any site. No signup, no API key.
This is ★ Top Ranked of 7 contracts across 1 expirations. ↓ Find it below
| $24.60 |
| 35.8% |
| 53 |
| $910⚠️ Spans earnings | $13.45 | 19.6% | 50 |
| $940⚠️ Spans earnings | $7.00 | 10.2% | 49 |
| $890⚠️ Spans earnings | $20.65 | 30.1% | 49 |
| $930⚠️ Spans earnings | $8.55 | 12.5% | 46 |
| $920⚠️ Spans earnings | $11.00 | 16.0% | 46 |
*Annualized yield assumes hold to expiration with no early assignment. Actual results may vary.
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 McKesson Corp., consider monthlies to collect more total premium per cycle. The CC Score ranks both DTE ranges so you can compare directly.
The primary risk is capped upside: if McKesson Corp. rallies sharply, you are obligated to sell at the strike price and miss gains above it. At the current top-ranked $900 strike (4.1% OTM), any rally beyond that level means you sell shares below market price. This risk is amplified with earnings in 19 days — a positive surprise can trigger a gap above your strike overnight, locking in the loss of upside before you can react. 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.
McKesson Corp.'s IV Rank is 22%, which is relatively low. Premiums may be thin. Consider waiting for IV to rise, using shorter DTE to maintain adequate annualized returns, or moving closer to the money if you are comfortable with the assignment risk.