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PulteGroup — Top covered call setups ranked by yield and downside protection
PulteGroup (PHM) operates in the Consumer Discretionary sector and has actively traded listed options. Among current candidates, the strongest income setup sits at the $135 strike with 44 days to expiration. IV Rank 25% is 11pp below the Consumer Discretionary sector median of 36%. Moderate yield — shorter DTE or closer strikes could improve returns per cycle. See Wheel Strategy for the full CSP-to-CC cycle.
Strike Placement
8.3% ann.Ranked #1 of 10 contracts by CC Score — balancing call yield, downside protection, and liquidity.
This is ★ Top Ranked of 10 contracts across 4 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 |
|---|---|---|---|
| $123 | $0.65 | 22.4% | 40 |
| $122 | $0.93 | 31.9% | 40 |
| $121 | $1.15 | 39.7% | 40 |
| Strike | Premium | Ann. Yield* | Score |
|---|---|---|---|
| $125 | $0.97 | 18.9% | 50 |
| $120 | $2.38 | 46.1% | 48 |
| $121 | $1.98 | 38.3% | 45 |
| Strike | Premium | Ann. Yield* | Score |
|---|---|---|---|
| $125 | $2.35 | 31.7% | 53 |
| Strike | Premium | Ann. Yield* | Score |
|---|---|---|---|
| $135★ TOP⚠️ Spans earnings | $1.18 | 8.3% | 53 |
| $130⚠️ Spans earnings | $2.08 | 14.6% | 51 |
| $120⚠️ Spans earnings | $5.40 | 38.1% | 48 |
*Annualized yield assumes hold to expiration with no early assignment. Actual results may vary.
Quantitative screening, not investment advice. Verify with your broker. Disclaimer
PulteGroup's best covered call currently offers 8.3% annualized at the $135 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.
PulteGroup's IV Rank is 25%, 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.
The top-ranked PulteGroup covered call uses a delta of 0.15, placing it in the conservative range (below 0.20). This means roughly 85% probability of expiring OTM. Conservative strikes collect less premium but preserve more upside potential and reduce assignment frequency.
The top-ranked covered call for PulteGroup is the $135 strike expiring 2026-05-15 (44 DTE), offering 8.3% annualized return with a delta of 0.15. It earns a CC Score of 53 out of 100. Data is updated daily after market close.
For PulteGroup, 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 PulteGroup.
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 PulteGroup, 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 PulteGroup rallies sharply, you are obligated to sell at the strike price and miss gains above it. At the current top-ranked $135 strike (14.8% 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.
PulteGroup's IV Rank is 25%, 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.
The bid-ask spread on the top strike is 38.3%, 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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