🔄 Trade Management: Writing A Fresh Covered Call On IREN

One of the things I like most about the Wheel Strategy is that a position can continue producing income.

My previous covered call on IREN expired worthless on Friday, which meant I kept the entire option premium and retained my shares. Now, without skipping a beat, I have another opportunity to write a fresh covered call and collect another round of income while the underlying position continues to work for me.

I’m selling the Oct 02, 2026 $70.00 covered call on my IREN position to generate $150.50 of income, providing a static yield of 3.35% in 46 days (26.56% annualized).
I will keep $150.50 of income per contract if IREN closes below $70.00 on Oct 02, 2026. There is a 91.50% probability that this will happen.

The $70 strike is important because it is a price where I would be completely comfortable letting my shares go.

I’m not writing calls simply because premium is available. The strike has to make sense relative to my position, my cost basis, and the price where I would be satisfied taking the capital gain.

My adjusted cost basis on IREN is now approximately $34.54 per share.

That did not happen from buying the stock at $34.54.

I initially generated income by repeatedly selling cash-secured puts. Each round of premium reduced the amount of capital I effectively had tied up in the eventual stock position. When I was ultimately assigned shares, the premium I had already collected brought my adjusted basis down substantially.

Once assigned, the strategy simply moved into the next phase.

Instead of selling cash-secured puts, I began writing covered calls against the shares and generating additional cash flow while waiting for capital appreciation.

That is exactly what I’m doing again today.

If IREN remains below $70 through expiration, I keep the $150.50 premium, keep my shares, and can look for another covered call opportunity.

If IREN moves above $70 and the shares are called away, I collect the option premium and sell the stock at a price more than double my adjusted cost basis.

With a $34.54 adjusted basis, being called away at $70 would represent $3,546 in capital appreciation on 100 shares, before even including today’s additional covered call premium.

Either outcome works within the plan.

This is a good example of what the Wheel Strategy is designed to do when everything comes together.

Sell cash-secured puts and collect premium.

If assignment happens, take ownership of the shares at an adjusted cost basis I’m comfortable with.

Then sell covered calls and continue collecting premium while the stock appreciates.

If a covered call expires worthless, keep the income and write another one when the setup makes sense.

If the shares are eventually called away at a price I’m happy with, take the capital gain and begin looking for the next cash-secured put opportunity.

The objective is not to predict every move perfectly. It is to continuously put capital and shares to work while controlling the prices where I’m willing to buy and sell.

IREN has been a textbook example of that process so far, and today I’m simply keeping the wheel turning.

NOTE: These strike selections are based on the live pricing listed and shown on the breakdown at the time of analysis. If the underlying price moves significantly by the time you read this, the optimal strike may change. In that case, you can use my AI Trade Manager to help reassess and select a more appropriate strike.

*Disclaimer: The examples in The Options Oracle are my opinion, not financial advice.