🔄 Wheel Strategy Trade Management Alert: Keeping the Cash Flowing

Hello traders and investors,

I’m using today to manage positions sitting in the portfolio.

I have shares of OKLO, KTOS, and HIMS, and instead of simply waiting for them to appreciate, I’m writing fresh covered calls against those positions and generating another layer of cash flow.

The strikes are intentionally well above the current share prices. I want to collect worthwhile premium, but I also want to leave the stocks room to run. If one of them eventually reaches my strike, I’m comfortable letting the shares go at that price.

That is exactly how I want the Wheel Strategy working.

Sell to Open 1 OKLO Oct. 2, 2026 $60 Covered Call

• Premium collected: $89.00

• Expiration: Oct. 2, 2026

• Days to expiration: 44

• Static yield: 2.13%

• Annualized yield: 17.65%

• Probability OKLO finishes below $60: 92.53%

I collect $89 today while still giving OKLO room to appreciate toward the $60 strike.

If it remains below $60 at expiration, I keep the shares and can look for another covered call. If it moves through $60 and the shares are called away, I’m comfortable taking the capital appreciation up to that level along with the premium already collected.

Sell to Open 1 KTOS Oct. 2, 2026 $80 Covered Call

• Premium collected: $92.50

• Expiration: Oct. 2, 2026

• Days to expiration: 44

• Static yield: 1.54%

• Annualized yield: 12.76%

• Probability KTOS finishes below $80: 91.27%

The same thinking applies here. I’m getting paid $92.50 today while leaving substantial upside between the current position and my $80 exit price.

If KTOS gets there, I’m comfortable taking the profit. If it doesn’t, I keep the shares and look to generate another round of premium.

I own 200 shares of HIMS, which allows me to write two covered calls.

Sell to Open 2 HIMS Oct. 2, 2026 $40 Covered Calls

• Premium per contract: $53.50

• Total premium collected: $107.00

• Expiration: Oct. 2, 2026

• Days to expiration: 44

• Static yield: 1.85%

• Annualized yield: 15.34%

• Probability HIMS finishes below $40: 92.07%

That puts another $107 of cash flow into the account while my 200 shares continue working.

Again, $40 is a price where I would be comfortable letting the shares go. If HIMS stays below it, I keep my shares and can write again. If it rallies through the strike, I take the appreciation and move on to the next opportunity.

Across the three positions, I’m writing four covered call contracts today:

OKLO: $89.00
KTOS: $92.50
HIMS: $107.00

Total new premium collected: $288.50

That money is collected now. I don’t have to wait for these stocks to rally before the positions start producing something for me.

A lot of investors buy shares and then wait.

I want the shares working while I wait.

Cash-secured puts allow me to collect premium while trying to acquire stock at prices I’m comfortable owning. If I’m assigned, covered calls give me a way to continue generating income while holding the shares for appreciation.

If the calls expire worthless, I can write fresh ones and collect again.

If the shares are called away at a strike I deliberately selected, I take the capital gain, keep the option premium, and start looking for another opportunity to sell cash-secured puts. That is the cycle.

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