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TE Connectivity — Top covered call setups ranked by yield and downside protection
TE Connectivity (TEL) operates in the Information Technology sector and has actively traded listed options. Among current candidates, the strongest income setup sits at the $230 strike with 39 days to expiration. IV Rank at 84% means call premiums are rich versus the past year. This setup offers higher income potential, but caps upside at the strike. See Wheel Strategy for the full CSP-to-CC cycle.
Strike Placement
29.5% ann.Ranked #1 of 4 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 |
|---|---|---|---|
| $220 | $2.55 | 40.1% | 53 |
| Strike |
|---|
Quantitative screening, not investment advice. Verify with your broker. Disclaimer
TE Connectivity currently offers a covered call at the $230 strike with 29.5% annualized return over 39 days. This represents a solid income opportunity for shareholders looking to generate yield on their position. The 8.9% distance to strike provides cushion against early assignment.
TE Connectivity's IV Rank sits at 84%, placing implied volatility above its 12-month norm. For covered call sellers, this means richer premiums per contract — the same strike and DTE commands more income when IV is expanded. This is one of the most favorable conditions for initiating or rolling covered calls.
VolRadar's CC Score ranks every TE Connectivity 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 TE Connectivity is the $230 strike expiring 2026-05-15 (39 DTE), offering 29.5% annualized return with a delta of 0.33. It earns a CC Score of 76 out of 100. Data is updated daily after market close.
For TE Connectivity, 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 TE Connectivity.
Free embeddable tool: IV Rank Gauge — add live IV data to any site. No signup, no API key.
This is ★ Top Ranked of 4 contracts across 2 expirations. ↓ Find it below
| Premium |
|---|
| Ann. Yield* |
|---|
| Score |
|---|
| $230★ TOP⚠️ Spans earnings | $6.65 | 29.5% | 76 |
| $240⚠️ Spans earnings | $4.20 | 18.6% | 67 |
| $220⚠️ Spans earnings | $10.25 | 45.4% | 66 |
*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 TE Connectivity, 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 TE Connectivity rallies sharply, you are obligated to sell at the strike price and miss gains above it. At the current top-ranked $230 strike (8.9% OTM), any rally beyond that level means you sell shares below market price. This risk is amplified with earnings in 15 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.
TE Connectivity currently has an IV Rank of 84%. IV is elevated, meaning option premiums are richer than usual — a favorable environment for selling covered calls. Higher IV translates directly to more income per contract for the same strike distance.
The top-ranked TE Connectivity covered call has 39 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.