The Wheel is a conservative options approach built around stocks you’re comfortable owning. This approach is among the most widely used options strategies in the U.S. market.
→ Sell a cash-secured put on a stock you are genuinely fine owning.
→ If assigned, switch to a covered call and let premium work down your cost basis over time.
This strategy allows you to generate consistent monthly income by systematically collecting premium, with many disciplined traders targeting 1–3% per month on deployed capital, depending on market conditions and risk tolerance.
15 setups that cleared every filter this week
A cash-secured put entry with a defined downside cushion
A covered call plan if assigned
Clean numbers: cushion, break-even, collateral, and annualized yield
Roll and exit triggers with the price levels that set them off
Scenario guidance for a 3–5% drop, a sharper drop with a volatility spike, or a rally
The actual plan for managing the trade from open to close
1. You start with the cash-secured put. If the stock stays above your strike at expiration, the put expires worthless. You keep the premium. No further action needed.
2. If the stock falls and you are assigned shares, then you sell the covered call. Not earlier. Not because it looks attractive. Only after assignment.
This matters because most Wheel mistakes come from forcing both legs when the market only gives you one.
It deliberately spans a range of collateral sizes — some setups tie up a few thousand dollars, others tens of thousands — along with different sectors and premium levels.
The week’s full opportunity set is visible regardless of account size. Each setup shows its collateral requirement up front, so the capital involved is clear before any decision.
How the report is used — as research, as a watchlist, or not at all — is each reader’s own call.
Each setup has two phases.
Phase 1 is the put — it always shows a full priced contract.
Phase 2 is the covered call, sold only if shares are assigned.
When that call can be priced today with real market data, Phase 2 shows the full contract: premium, break-even, delta, yield.
When it can’t — because the call belongs to a later cycle, after assignment — printing numbers would be guesswork, so Phase 2 shows the plan instead: the target strike and delta to use once the shares are owned. The header “If Assigned (Next Cycle)” marks the second kind.
Every setup shows a manage-by date. It is the day to check the position and decide whether to let the put run, close it, or roll it. When a company reports earnings before the option expires, close the put rather than rolling — a roll moves to a later expiration and carries a new put through the same report. In that case the manage-by date falls before the report, and the setup’s note says so. Treat the manage-by date as part of the trade.
Where a company reports before expiration, the manage-by date is set from that scheduled earnings date at the time of analysis. Otherwise it is a routine checkpoint partway through the contract. Companies sometimes move their report dates. Verify the earnings date at your broker before entering, and again as the manage-by date approaches.
The Wheel Strategy FAQ covers the questions most people ask starting out, and the Member Manual walks through how to read and use this report.
Every setup in this report passed all of these criteria before making the list. This is strict filtering designed to eliminate low-quality setups before they waste your capital.
Disclaimer. These setups are educational content, not personal investment advice, and nothing here is a recommendation to buy, sell, or hold any security. The numbers reflect market conditions at the time of analysis — markets move, so the bid/ask at your broker will differ. Always verify the live option chain before placing any order, and use limit orders, not market orders. Options trading involves substantial risk and is not suitable for all investors. The author may hold positions in securities discussed. Do your own research and size positions to your own risk tolerance.
Boeing builds commercial jets and defense aircraft. The stock has climbed about 8% over the past month and sits roughly 6% above its 200-day average. The $220 strike leaves a 5% cushion, and the next earnings report lands after this option expires.
Cost basis is $216.65 (strike minus premium). With IV subdued, don’t rush the call — wait for an IV bump or steadier tape.
Sell the ~$225 call (~0.30 delta) in the next monthly cycle (~October 16) — never below the $216.65 cost basis.
If the tape stays choppy, step down to 0.15–0.20 delta and roll up-and-out for a credit.
XLK is the SPDR fund tracking the S&P 500 technology sector, so one contract spreads risk across dozens of large tech names. It cleared the filters with a 5.3% cushion and steady premium, with no single-company earnings date to manage. One timing note: Nvidia, the fund’s largest holding, reports on August 26, and the Jackson Hole meeting follows on August 28. Both land inside the hold period and can move the tech tape, so the scenario plan below carries extra weight this week.
Cost basis is $177.54 (strike minus premium). No rush on the call — wait for shares to steady or an IV bump.
Sell the ~$185 call (~0.30 delta) in the next monthly cycle (~October 16) — never below the $177.54 cost basis.
If the tape stays choppy, step down to 0.15–0.20 delta and roll up-and-out for a credit.
UPS runs the largest parcel delivery network in the world. The stock has pulled back about 11% over the past month and now sits right at its 200-day average. The $100 strike leaves a 4.3% cushion, the thinnest in this week’s book, against a 16.6% annualized yield. Earnings are out of the way until late October.
Cost basis is $98.41 (strike minus premium). With IV subdued, don’t rush the call — wait for an IV bump or steadier tape.
Sell the ~$102.50 call (~0.30 delta) in the next monthly cycle (~October 16) — never below the $98.41 cost basis.
If the tape stays choppy, step down to 0.15–0.20 delta and roll up-and-out for a credit.
Interactive Brokers runs a low-cost electronic brokerage with a global client base. Shares sit about 19% above the 200-day average, and the $85 strike sits above the 200-day EMA near $79. The 7.7% cushion is one of the wider ones in this week’s list.
Cost basis is $83.58 (strike minus premium). With IV subdued, don’t rush the call — wait for an IV bump or steadier tape.
Sell the ~$87 call (~0.30 delta) in the next monthly cycle (~October 16) — never below the $83.58 cost basis.
If the tape stays choppy, step down to 0.15–0.20 delta and roll up-and-out for a credit.
Palantir sells data and AI software to governments and large companies. The stock is up about 30% in a month, and the $160 strike sits 8.1% below spot. Momentum this strong can reverse fast, so the plan below leans on early gain-taking.
Cost basis is $156.32 (strike minus premium). With IV subdued, don’t rush the call — wait for an IV bump or steadier tape.
Sell the ~$162.50 call (~0.30 delta) in the next monthly cycle (~October 16) — never below the $156.32 cost basis.
If the tape’s still choppy, write at 0.15–0.20 delta (not 0.30) so a snap-back doesn’t call shares away at a loss.
Ten more setups below. UnitedHealth in Healthcare; Adobe, IBM, and DocuSign in Tech; Philip Morris, Clorox, and Altria in Consumer Staples; Blackstone in Financials; Freeport-McMoRan in Materials; Copart in Industrials.
IV ranging from 25.5% to 65.3%, with premiums up to $645 per contract. Four of the ten need less than $7,000 in collateral. Members receive the full list each week — complete opportunity set, same depth on every setup.
Paid subscribers also receive: a downloadable PDF with the complete 15-setup report, ready to print or save for the week.
Every plan includes a 30-day unconditional refund.
If it’s not what you expected, email editor@wheelstrategyincome.com within 30 days for a full refund.
No explanation required, though any feedback is appreciated.
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