Weekly credit spreads use options with the same expiration date but different strike prices.
In a call credit spread, you sell a lower strike call and buy a higher strike call, while in a bull put credit spread, you sell a higher strike put and buy a lower strike put.
The aim is for both options to expire worthless, letting you keep the net credit as profit. So what are some good stocks for weekly credit spreads to achieve this? Let’s take a look.
Best Stocks For Weekly Credit Spreads (Verified List)
Entergy Corporation (NYSE: ETR)
Entergy Corporation is an American energy firm primarily operating within the electric power sector.
Based in New Orleans, Louisiana, the company serves almost 3 million clients across Arkansas, Mississippi, and Texas.
The company generates, transmits, distributes, and sells electricity to residential, commercial, and industrial customers, with Louisiana customers receiving natural gas distribution services.
Entergy operates power generation facilities, including nuclear, gas, coal, oil, and hydroelectric stations. It owns and manages a distribution network extending over 113,000 miles and a transmission network covering over 15,000 miles.
Being a solid establishment, Entergy is an excellent option for weekly credit spreads.
More importantly, the stock has low volatility, which reduces the chances of an option being exercised or assigned.
This means there is a higher probability of an option expiring worthless which works great for a weekly credit spread strategy.
We can measure the volatility of a stock with its implied volatility. An implied volatility score below 50% reflects low volatility.
As of May 27, 2025, ETR has an implied volatility of 24.2%, placing it in the 75th percentile rank, and a beta of 0.28, indicating lower volatility compared to the broader market.
After discussing the company’s market cap and revenue, add: “As of May 27, 2025, Entergy Corporation’s stock price is approximately $82.78.
Chevron Corporation (NYSE: CVX)
One of the most integrated energy companies in the world, Chevron Corporation is active in all facets of the oil, gas, and geothermal sectors.
The American multinational energy corporation portfolio includes diverse assets, including onshore and offshore oil and gas fields, refineries, petrochemical plants, and fuel distribution networks.
There’s no hiding that Chevron operates in a highly volatile oil and gas industry whose financial performance is heavily influenced by oil and gas prices.
As of May 28, 2025, Chevron Corporation exhibits an implied volatility of 24.65% and a beta of 0.57, indicating moderate market sensitivity and relatively low volatility.
It also boasts a relatively low debt-to-equity ratio, giving it the flexibility to make investments and pursue growth opportunities.
Chevron’s market cap is $319.65 billion, and it earned $244.30 billion last year. As of May 28, 2025, Chevron Corporation’s stock price is approximately $137.83.
McDonald’s Corporation (NYSE: MCD)
We can’t talk about credit spread strategy without the company that provides consumers with a good dining table spread.
McDonald’s Corporation is an American fast-food chain best known for its burgers, fries, and other menu items.
Its menu includes burgers, chicken sandwiches, salads, breakfast items, and desserts. The company is also known for its numerous popular promotions.
In addition to its core menu items, McDonald’s has been investing in new menu innovations, such as plant-based meat alternatives and custom-built burgers, to meet changing consumer tastes and preferences.
This innovation shows the company’s ability to diversify, grow and keep a steady financial performance. All qualities of an outstanding weekly credit spread stock.
McDonald’s is a solid financial performer. It reported a revenue of $25.92 billion in 2024, reflecting a 1.67% increase from the previous year.
Even more appealing is its predictability and stability. “The company has an implied volatility of approximately 17.96% and a stock beta of 0.57.
As of May 27, 2025, MCD is trading at approximately $314.95 per share.
The Procter & Gamble Company (NYSE: PG)
The Procter & Gamble Company is a great blue chip stock for many strategies, and the weekly credit spread is no different.
It is a multinational consumer goods corporation headquartered in Cincinnati, Ohio.
A highly diversified entity, the company produces and markets various consumer products, including household and personal care products, such as Tide laundry detergent, Crest toothpaste, and Gillette razors.
The company’s portfolio includes pet food and snacks like Iams and Eukanuba.
Various factors, including changes in consumer preferences, competition from other consumer goods companies, and fluctuations in commodity prices, influence P&G’s financial performance.
The company has high liquidity and low volatility, two primary benchmarks for choosing weekly credit spread options. It has an implied volatility of 17.4% and a stock beta of 0.41, underscoring its low volatility profile.
Procter & Gamble’s stability is also illustrated by its 66 years of dividend growth. As of May 28, 2025, PG is trading at approximately $167.76 per share.
Merck & Co. Inc. (NYSE: MRK)
Based in New Jersey, USA, Merck & Co., Inc., commonly known as Merck, is a global pharmaceutical company.
Merck develops, manufactures, and markets various prescription medicines, vaccines, and animal health products that treat different medical conditions like cancer, diabetes, cardiovascular disease, infectious diseases, and animal health.
The company boasts a strong research and development program and invests heavily in developing new drugs and treatments.
It also has several collaborations and partnerships with other pharmaceutical companies and academic institutions to advance research in critical areas.
Merck operates in an industry that is not overly volatile or susceptible to sudden price drops. It has an implied volatility of 35.5% and a stock beta of 0.44, indicating higher volatility in recent times.
The company also has strong financials, recording consistent revenue growth at a rate of 21.72%.
It also records 12 years of dividend growth at a current yield of 2.60%.
Merck has a large market cap of $285.16 billion. As of May 28, 2025, MRK is trading at approximately $77.59 per share.
The Travelers Companies Inc. (NYSE: TRV)
The Travelers Companies Inc. is an American insurance company founded in 1853 and is today one of the world’s largest property and casualty insurance companies.
The Travelers Companies, through its subsidiaries, offers a wide range of insurance products, including auto, home, and business insurance.
The company also provides insurance for specialty areas such as aerospace, energy, and construction.
The Travelers Companies strongly focuses on risk management and leverages technology and data analytics to help its customers manage risks and prevent losses.
The company also provides risk management services and consulting to world-leading businesses and organizations.
In 2022, the insurance company generated $36.88 billion and was set for an over 10% earnings growth this year.
The Travelers Companies’ capital position and liquidity remain strong amidst the global financial market disruptions.
In fact, it currently has an implied volatility of 19.5%, indicating reduced market volatility., assuring stability to its investors.
As of May 28, 2025, TRV is trading at approximately $275.88 per share.
The Coca-Cola Company (NYSE: KO)
Led by its world-renowned and much-beloved flagship products, the Coca-Cola company is no stranger to the weekly credit spread options strategy.
The company offers a range of non-alcoholic beverages, including carbonated soft drinks, energy drinks, juices, and sports drinks.
Its famous brands include Coca-Cola, Sprite, Fanta, Minute Maid, Powerade, and Dasani.
Its diversified product line, which includes a range of products from soft drinks to juices, sports drinks, and even water, helps reduce the impact of market volatility on the company’s overall performance.
One of the most well-known brands in the world, Coca-Cola has a long track record of success in the beverage sector.
It has outstanding financials reporting year-over-year revenue growth of upwards of 11%.
Its market cap currently stands at $271.87 billion, and its 60 years of consistent dividend growth provide stability and predictability to investors.
KO is an established brand with a high trading volume and open interest in its options contracts, ensuring sufficient liquidity for traders to enter and exit trades at favorable prices.
The company has an implied volatility of 17.8%, reflecting continued low volatility. As of May 28, 2025, KO is trading at approximately $71.78 per share.
Mondelez International, Inc. (NASDAQ: MDLZ)
Another established brand, Mondelez International Inc., is a multinational food and beverage company that was established in 2012 after a split from Kraft Foods.
The Chicago-based company operates in over 80 countries and sells its products in more than 150 countries across the globe.
Mondelez International’s product portfolio includes Oreo, Ritz, CLIF Bar, and Tate’s Bake Shop biscuits.
It also includes baked snacks and Cadbury Dairy Milk, Milka, and Toblerone chocolate.
The company, valued at $118.58 billion, has a market cap of $96.85 billion and 12 years of consistent dividend growth.
In 2022, it raised $31.50 billion, with experts estimating an 8.5% increase this year.
Mondelez International, Inc. offers weekly options with consistent expiration dates, making planning and executing credit spread trades easier.
Like Coca-Cola, the options contracts on Mondelez International, Inc. have high trading volume and open interest, meaning sufficient liquidity exists to enter and exit trades at favorable prices.
MDLZ is less likely to experience significant price swings, making managing the risk of credit spread easier. It has an implied volatility of 20.9%, placing it in the 59th percentile, indicating moderate volatility. As of May 28, 2025, MDLZ is trading at approximately $66.90 per share.
Are Stocks For Weekly Credit Spreads a Good Investment?
Investing in best stocks for weekly credit spreads can be an effective strategy for bagging a solid income while minimizing your downside risk.
By taking advantage of stocks with favorable implied volatility, optimal strike prices, and same expiration dates, investors can execute bull put credit spreads.
This involves selling a higher strike put option and buying a lower strike put option, allowing investors to receive a net credit upfront.
The strategy clearly defines maximum profit and loss, providing more control over the investment.
As a result, stocks for weekly credit spreads can offer investors a steady income stream, diversification, and a risk-managed approach to trading in the stock market.
FAQs
What Is The Best Time Frame For Credit Spreads?
The optimal time for weekly credit spreads is usually 1-3 weeks until expiration, allowing investors to capitalize on rapid time decay while minimizing capital exposure.
What Increases Credit Spreads?
Some factors that increase credit spreads include heightened perceived credit risk, rising interest rates, economic uncertainty, market volatility, and changes in credit ratings.
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