XLI Covered Call Analysis 2026 IV Rank 39.4%

Q: What is the best covered call for XLI right now?

The top-ranked covered call for Industrial Select Sector SPDR is the $168 strike expiring 2026-04-17 (16 DTE), offering 22.8% annualized return with a delta of 0.32. It earns a CC Score of 54 out of 100. Data is updated daily after market close.

Q: What delta levels are available for XLI covered calls?

For Industrial Select Sector SPDR, 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.

Q: How does the CC Score work for XLI covered calls?

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 Industrial Select Sector SPDR.

Q: Are weekly or monthly covered calls better for XLI?

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 Industrial Select Sector SPDR, current elevated IV makes both viable — weeklies capture the rich premium faster. The CC Score ranks both DTE ranges so you can compare directly.

Q: What is the main risk of running a covered call on XLI?

The primary risk is capped upside: if Industrial Select Sector SPDR rallies sharply, you are obligated to sell at the strike price and miss gains above it. At the current top-ranked $168 strike (2.6% 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.

Q: Is now a good time to sell covered calls on XLI?

Industrial Select Sector SPDR's IV Rank is 39%, 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.

XLI

Score60 VRP+0.1pp IVR39.4%Earn—EM±1d$1.78

ViewingCovered Call

›

XLI

Score60 VRP+0.1pp IVR39.4%Earn—EM±1d$1.78

ViewingCovered Call

Weak edge.Best covered call yields 22.8% annualized on XLI.

Best CC Yield

22.8%

IV Rank: 39%

Premium: $1.64

Delta: 0.32

View alternatives →Full CC screener →

Industrial Select Sector SPDR (XLI) operates in the ETF - Sector sector and has actively traded listed options. Among current candidates, the strongest income setup sits at the $168 strike with 16 days to expiration. IV Rank at 39% means call premiums are average 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

22.8% ann.

$164

$168

2.6% OTM

Premium: $1.64Protection: 1.0%Expiry: 2026-04-17

★XLI Best Covered Call: $168 Strike, 22.8% Ann.

Ranked #1 of 16 contracts by CC Score — balancing call yield, downside protection, and liquidity.

Premium

$1.64

$164/contract

Ann. Yield*

22.8%

if flat: 1.0%

Strike

$168

2.6% OTM

Expiry

16d

2026-04-17

CC Score

Watch

Strengths

✓High annualized income potential
✓No earnings before expiry
✓High open interest (>500)
✓Tight bid-ask spread (<5%)
+2 more

Δ 0.32Ret. if called: 3.6%Downside prot: 1.0%IV Rank: 39.4%OI: 2,431

▸ Market Context

⚠

IV Rank: 39%Moderate IV. Premiums are fair but not particularly rich.

⚠

VRP: +0.1ppSlight seller edge. Proceed with smaller position sizing.

✓

Earnings: no date announcedNo earnings date on calendar — reduced event risk.

✓

RV Ratio: 1.00Low realized vol vs implied — underlying is calm, good for covered calls.

✓

Best CC liquidity: OI 2,431, spread 3.1%Excellent liquidity — tight spread, deep order book.

▸ Execution Checklist

Check open price vs. yesterday's close — ensure no overnight gap
Reconfirm bid-ask spread at open — wait for markets to settle
Verify no overnight earnings or news announcements
Use a limit order near the mid price — never market order options
Consider waiting 15 min after open for spread to tighten
Set a GTC close order at 50% of premium collected

This is ★ Top Ranked of 16 contracts across 5 expirations. ↓ Find it below

▶How to use this page

▶How CC Score is calculated

FormulaCC Score = Income (22%) + Safety (18%) + Liquidity (18%) + Quality (14%) + Event (12%) + IV (8%) + Execution (8%)

Inputs

Annualized return, delta, bid-ask spread, open interest, earnings proximity, IV rank, DTE

Data source

VolRadar proprietary composite score using ORATS chain data

Limitations

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.

Full methodology details →

All XLI Covered Call Opportunities — 16 Strikes Ranked

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.

2026-04-109d3 strikes · avg 35.6% yield · avg score 44

Strike	Δ	Premium	Ann. Yield*	If Called	Dist %	OI	Score
$166	0.38	$1.57	39.0%	2.3%	1.4%	32	44
$169	0.22	$0.72	18.0%	3.6%	3.2%	90	44
$165	0.45	$2.01	49.8%	2.0%	0.7%	31	43

2026-04-1716d4 strikes · avg 25.8% yield · avg score 50★ TOP PICK

Strike	Δ	Premium	Ann. Yield*	If Called	Dist %	OI	Score
$168★ TOP	0.32	$1.64	22.8%	3.6%	2.6%	2,431	54
$166	0.41	$2.45	34.1%	2.9%	1.4%	290	50
$167	0.37	$2.02	28.1%	3.2%	2.0%	386	47
$169	0.28	$1.31	18.3%	4.0%	3.2%	47	47

2026-04-2423d3 strikes · avg 25.4% yield · avg score 46

Strike	Δ	Premium	Ann. Yield*	If Called	Dist %	OI	Score
$165	0.48	$3.58	34.6%	2.9%	0.7%	81	48
$170	0.29	$1.58	15.3%	4.8%	3.8%	50	45
$167	0.40	$2.72	26.4%	3.6%	2.0%	56	45

2026-05-0130d3 strikes · avg 26.0% yield · avg score 46

Strike	Δ	Premium	Ann. Yield*	If Called	Dist %	OI	Score
$168	0.38	$2.94	21.9%	4.1%	2.3%	20	47
$166	0.45	$3.55	26.4%	3.5%	1.4%	24	45
$165	0.49	$4.03	29.9%	3.2%	0.7%	48	44

2026-05-1544d3 strikes · avg 11.0% yield · avg score 49

Strike	Δ	Premium	Ann. Yield*	If Called	Dist %	OI	Score
$172	0.29	$2.19	11.1%	6.4%	5.0%	57	51
$168	0.41	$3.70	18.7%	4.8%	2.6%	757	49
$180	0.12	$0.65	3.3%	10.3%	9.9%	13	46

*Annualized yield assumes hold to expiration with no early assignment. Actual results may vary.

▼ Risk Summary

Max assignment loss: If XLI drops to $0, max loss = $16,378 per contract minus premium collected.

Covered calls cap your upside at the strike price. If XLI rallies above the strike, you miss gains beyond that level.

View in CC Screener →Wheel Strategy →Strategy Builder →Premium Selling →

Analysis byVolRadar Research·Methodology·Quantitative screening tool

Quantitative screening, not investment advice. Verify with your broker. Disclaimer

Best covered call strikes reviewed

NextWheel Strategy— Full CSP→CC cycle Strategy Builder— Compare strategies

XLI Covered Call: Solid Income Setup

Industrial Select Sector SPDR currently offers a covered call at the $168 strike with 22.8% annualized return over 16 days. This represents a solid income opportunity for shareholders looking to generate yield on their position. The 2.6% distance to strike provides cushion against early assignment.

XLI Covered Calls in a Low-IV Environment

Industrial Select Sector SPDR's IV Rank is 39%, 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.

How XLI Covered Calls Are Ranked

VolRadar's CC Score ranks every Industrial Select Sector SPDR 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.

FAQ

What is the best covered call for XLI right now?▾

The top-ranked covered call for Industrial Select Sector SPDR is the $168 strike expiring 2026-04-17 (16 DTE), offering 22.8% annualized return with a delta of 0.32. It earns a CC Score of 54 out of 100. Data is updated daily after market close.

What delta levels are available for XLI covered calls?▾

For Industrial Select Sector SPDR, 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.

How does the CC Score work for XLI covered calls?▾

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 Industrial Select Sector SPDR.

Are weekly or monthly covered calls better for XLI?▾

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 Industrial Select Sector SPDR, current elevated IV makes both viable — weeklies capture the rich premium faster. The CC Score ranks both DTE ranges so you can compare directly.

What is the main risk of running a covered call on XLI?▾

The primary risk is capped upside: if Industrial Select Sector SPDR rallies sharply, you are obligated to sell at the strike price and miss gains above it. At the current top-ranked $168 strike (2.6% 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.

Is now a good time to sell covered calls on XLI?▾

Industrial Select Sector SPDR's IV Rank is 39%, 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.

Free embeddable tool: IV Rank Gauge — add live IV data to any site. No signup, no API key.

›

Weak edge.Best covered call yields 22.8% annualized on XLI.

Best CC Yield

22.8%

IV Rank: 39%

Premium: $1.64

Delta: 0.32

View alternatives →Full CC screener →

Strike Placement

22.8% ann.

$164

$168

2.6% OTM

Premium: $1.64Protection: 1.0%Expiry: 2026-04-17

★XLI Best Covered Call: $168 Strike, 22.8% Ann.

Ranked #1 of 16 contracts by CC Score — balancing call yield, downside protection, and liquidity.

Premium

$1.64

$164/contract

Ann. Yield*

22.8%

if flat: 1.0%

Strike

$168

2.6% OTM

Expiry

16d

2026-04-17

CC Score

Watch

Strengths

✓High annualized income potential
✓No earnings before expiry
✓High open interest (>500)
✓Tight bid-ask spread (<5%)
+2 more

Δ 0.32Ret. if called: 3.6%Downside prot: 1.0%IV Rank: 39.4%OI: 2,431

▸ Market Context

⚠

IV Rank: 39%Moderate IV. Premiums are fair but not particularly rich.

⚠

VRP: +0.1ppSlight seller edge. Proceed with smaller position sizing.

✓

Earnings: no date announcedNo earnings date on calendar — reduced event risk.

✓

RV Ratio: 1.00Low realized vol vs implied — underlying is calm, good for covered calls.

✓

Best CC liquidity: OI 2,431, spread 3.1%Excellent liquidity — tight spread, deep order book.

▸ Execution Checklist

Check open price vs. yesterday's close — ensure no overnight gap
Reconfirm bid-ask spread at open — wait for markets to settle
Verify no overnight earnings or news announcements
Use a limit order near the mid price — never market order options
Consider waiting 15 min after open for spread to tighten
Set a GTC close order at 50% of premium collected

This is ★ Top Ranked of 16 contracts across 5 expirations. ↓ Find it below

▶How to use this page

▶How CC Score is calculated

FormulaCC Score = Income (22%) + Safety (18%) + Liquidity (18%) + Quality (14%) + Event (12%) + IV (8%) + Execution (8%)

Inputs

Annualized return, delta, bid-ask spread, open interest, earnings proximity, IV rank, DTE

Data source

VolRadar proprietary composite score using ORATS chain data

Limitations

Full methodology details →

All XLI Covered Call Opportunities — 16 Strikes Ranked

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.

2026-04-109d3 strikes · avg 35.6% yield · avg score 44

Strike	Δ	Premium	Ann. Yield*	If Called	Dist %	OI	Score
$166	0.38	$1.57	39.0%	2.3%	1.4%	32	44
$169	0.22	$0.72	18.0%	3.6%	3.2%	90	44
$165	0.45	$2.01	49.8%	2.0%	0.7%	31	43

2026-04-1716d4 strikes · avg 25.8% yield · avg score 50★ TOP PICK

Strike	Δ	Premium	Ann. Yield*	If Called	Dist %	OI	Score
$168★ TOP	0.32	$1.64	22.8%	3.6%	2.6%	2,431	54
$166	0.41	$2.45	34.1%	2.9%	1.4%	290	50
$167	0.37	$2.02	28.1%	3.2%	2.0%	386	47
$169	0.28	$1.31	18.3%	4.0%	3.2%	47	47

2026-04-2423d3 strikes · avg 25.4% yield · avg score 46

Strike	Δ	Premium	Ann. Yield*	If Called	Dist %	OI	Score
$165	0.48	$3.58	34.6%	2.9%	0.7%	81	48
$170	0.29	$1.58	15.3%	4.8%	3.8%	50	45
$167	0.40	$2.72	26.4%	3.6%	2.0%	56	45

2026-05-0130d3 strikes · avg 26.0% yield · avg score 46

Strike	Δ	Premium	Ann. Yield*	If Called	Dist %	OI	Score
$168	0.38	$2.94	21.9%	4.1%	2.3%	20	47
$166	0.45	$3.55	26.4%	3.5%	1.4%	24	45
$165	0.49	$4.03	29.9%	3.2%	0.7%	48	44

2026-05-1544d3 strikes · avg 11.0% yield · avg score 49

Strike	Δ	Premium	Ann. Yield*	If Called	Dist %	OI	Score
$172	0.29	$2.19	11.1%	6.4%	5.0%	57	51
$168	0.41	$3.70	18.7%	4.8%	2.6%	757	49
$180	0.12	$0.65	3.3%	10.3%	9.9%	13	46

*Annualized yield assumes hold to expiration with no early assignment. Actual results may vary.

▼ Risk Summary

Max assignment loss: If XLI drops to $0, max loss = $16,378 per contract minus premium collected.

Covered calls cap your upside at the strike price. If XLI rallies above the strike, you miss gains beyond that level.

View in CC Screener →Wheel Strategy →Strategy Builder →Premium Selling →

Analysis byVolRadar Research·Methodology·Quantitative screening tool

Quantitative screening, not investment advice. Verify with your broker. Disclaimer

Best covered call strikes reviewed

NextWheel Strategy— Full CSP→CC cycle Strategy Builder— Compare strategies

XLI Covered Call: Solid Income Setup

XLI Covered Calls in a Low-IV Environment

How XLI Covered Calls Are Ranked

FAQ

What is the best covered call for XLI right now?▾

What delta levels are available for XLI covered calls?▾

How does the CC Score work for XLI covered calls?▾

Are weekly or monthly covered calls better for XLI?▾

What is the main risk of running a covered call on XLI?▾

Is now a good time to sell covered calls on XLI?▾

More XLI Analysis

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Free embeddable tool: IV Rank Gauge — add live IV data to any site. No signup, no API key.