HD options — covered call & cash-secured put yields
Home Depot · Consumer Discretionary — Retail
HD delayed-data snapshot
Top 5 covered-call strikes for HD
Annualized screen yield = (premium ÷ capital at risk) × (365 ÷ DTE). Comparison metric, not a projected annual return. Excludes strikes with OI below 1 or absent bid/ask.
| Strike | Expiration | Bid | Ask | Mid | |Δ| | Vol | OI | Spread% | Cycle yld | Ann screen yld | Data provider |
|---|---|---|---|---|---|---|---|---|---|---|---|
| $307.50C | 2026-10-02 (11d) | — | — | — | 0.33 | 22 | — | — | — | — | polygon |
| $310.00C | 2026-10-02 (11d) | — | — | — | 0.27 | 36 | — | — | — | — | polygon |
| $312.50C | 2026-10-02 (11d) | — | — | — | 0.21 | 43 | — | — | — | — | polygon |
| $315.00C | 2026-10-02 (11d) | — | — | — | 0.17 | 94 | — | — | — | — | polygon |
Top 5 cash-secured put strikes for HD
Capital at risk for a CSP = strike × 100. Same screen-yield formula; same not-a-forecast caveat.
| Strike | Expiration | Bid | Ask | Mid | |Δ| | Vol | OI | Spread% | Cycle yld | Ann screen yld | Data provider |
|---|---|---|---|---|---|---|---|---|---|---|---|
| $297.50P | 2026-10-02 (11d) | — | — | — | 0.38 | 16 | — | — | — | — | polygon |
| $295.00P | 2026-10-02 (11d) | — | — | — | 0.32 | 75 | — | — | — | — | polygon |
| $292.50P | 2026-10-02 (11d) | — | — | — | 0.27 | 6 | — | — | — | — | polygon |
| $290.00P | 2026-10-02 (11d) | — | — | — | 0.21 | 14 | — | — | — | — | polygon |
| $287.50P | 2026-10-02 (11d) | — | — | — | 0.16 | 4 | — | — | — | — | polygon |
Ranking factors, exclusions, and missing-data handling
- Ranking: contracts are ordered by annualized screen yield, descending. Ties broken by liquidity score.
- Minimum liquidity: strikes with open interest below 1 or absent bid/ask are excluded from the table.
- Pricing input: mid-of-bid-ask, falling back to last trade then day close when bid/ask are stale (after-hours / illiquid strikes).
- Excluded contracts: ITM strikes (we screen OTM only by default), spreads wider than 30% of mid, and strikes outside the 0.10–0.45 delta band.
- Missing-data handling: when Polygon returns no delta for a leg, we fall back to a Black-Scholes-Merton delta computed from spot, strike, DTE, and implied volatility. When IV is also missing, the strike is dropped.
- Why annualized screen yield is not a forecast: it assumes the same premium/strike combination repeats every cycle for a year, ignoring regime changes, IV crush, and post-assignment capital reallocation. Realized returns are typically materially lower. See annualized screen yield.
- Ticker-specific limitations for HD: see the limitations panel further down on this page.
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Top 5 covered-call strikes for HD
Ranked by annualized yield. Updated every 5 minutes during market hours.
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Top 5 cash-secured puts for HD
Sub-spot strikes ranked by annualized return on capital.
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About HD options
Home Depot (HD) is a Consumer Discretionary — Retail listed company with moderate implied volatility typical of large-cap US equities. HD pays a 2.4% dividend. Dividend-capture risk on short calls is moderate. Monitor ex-dividend timing when selling near-term calls.
For wheel-strategy traders, HD is an excellent wheel candidate. The moderate implied volatility typical of large-cap US equities means cash-secured puts collect meaningful premium, and the underlying business profile (Consumer Discretionary — Retail) makes it a name many income sellers would be comfortable being assigned at the right strike.
For income-strategy traders, the HD option chain typically supports both conservative (delta around 0.20) and aggressive (delta around 0.35) premium-selling setups. The Delayed Opportunities ranking above scans every active expiration and surfaces the highest-yielding contracts by annualized return.
Income strategies on HD
- Covered calls on HD — if you own HD shares. New to the strategy? Read the full covered-calls guide first.
- Cash-secured puts on HD — if you have cash to deploy and would be comfortable owning HD. See the cash-secured puts guide for mechanics.
- HD wheel strategy — for repeating CSP → assignment → covered call → called-away cycles. The complete wheel-strategy guide covers stock selection and cycle math.
Related tickers
Other Consumer Discretionary names with similar liquidity profile:
Frequently asked questions
What are the best covered-call strikes for HD right now?
The Top 5 list above ranks every covered-call strike across every upcoming expiration on HD by annualized yield, refreshed every 5 minutes. Click any strike to open the calculator pre-filled with that contract.
Is HD a good wheel-strategy stock?
For wheel-strategy traders, HD is an excellent wheel candidate. The moderate implied volatility typical of large-cap US equities means cash-secured puts collect meaningful premium, and the underlying business profile (Consumer Discretionary — Retail) makes it a name many income sellers would be comfortable being assigned at the right strike.
What delta should I sell on HD?
Most income sellers target a 0.20 to 0.35 delta strike. Conservative sellers stay near 0.20 (lower yield, lower assignment risk). Aggressive sellers go to 0.35 (higher yield, higher assignment risk). With moderate implied volatility typical of large-cap US equities, HD works well across this range.
Does HD pay a dividend, and does it affect my covered call?
HD pays a 2.4% dividend. Dividend-capture risk on short calls is moderate. Monitor ex-dividend timing when selling near-term calls.