Daily indicator
Covered Call Market Sentiment
A composite daily score that tells covered call sellers how favorable today's market conditions are. Combines IV rank, average yield, and candidate availability into a single number. — May 30, 2026
How the score is calculated
40%
IV Rank
Average IV rank across all sectors. Normalized 0–100. High IV rank means expensive premiums — better for sellers.
40%
Avg Yield
Average annualized return across all candidates. 0% → 0 pts, 50%+ → 100 pts. Directly measures income available today.
20%
Candidate count
Number of viable contracts in the screener. More candidates = more choice. 0 → 0 pts, 200+ → 100 pts.
Score zones: 0–29 Bearish · 30–49 Neutral · 50–71 Favorable · 72–100 Bullish
Frequently asked questions
What is the Covered Call Market Sentiment indicator?
It is a daily composite score (0–100) that summarizes how favorable the market is for selling covered calls. It weighs three signals: the average IV rank across all sectors (40%), the average annualized yield available across all candidates (40%), and the total number of viable candidates (20%). A score above 50 means conditions are favorable or bullish.
What does a Bullish reading mean for covered call sellers?
A Bullish reading (score ≥ 72) means that implied volatility is elevated across many sectors, available yields are well above historical norms, and there is a large pool of candidates to choose from. These are ideal conditions for opening new covered call positions.
How often is the sentiment score updated?
The score is recalculated daily after market close, once the nightly options scanner completes its run (typically by 7:30 PM ET). The page refreshes every hour via ISR.
What IV rank threshold signals a good covered call environment?
Traders generally consider an IV rank above 50 as elevated — meaning current implied volatility is above the midpoint of its 52-week range. An average IV rank above 50 across sectors suggests that option premiums are rich relative to recent history, which benefits covered call sellers.