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.
The 15 strongest Wheel candidates for this week
A cash-secured put entry with a defined downside cushion
A covered call plan if assigned
Clean numbers: cushion, breakeven, upside-to-strike, collateral
Roll candidates with specific strikes, dates, and expected credits
Scenario guidance for if the stock drops 3–5%, drops 5%+, or rallies
The actual plan for managing the trade from open to close
I publish new setups every Monday.
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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.
Phase 1 is the put you sell now.
Phase 2 is the covered call, and it comes in two forms.
When the scanner pairs a specific call with the put, Phase 2 shows that full contract: premium, break-even, delta, and yield.
When it doesn’t, Phase 2 shows the target strike and delta only. You sell that call in the next cycle, after assignment, and you’ll see its real numbers then, once you own the shares.
The Phase 2 header tells you which one you’re looking at. “If Assigned” means a specific contract. “If Assigned (Next Cycle)” means a forward target.
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. The analysis is real, the reasoning is thorough, and the numbers reflect market conditions at the time of analysis — but markets move, and the bid/ask you see at your broker when you go to execute will not match the numbers shown here exactly. Always pull up the current option chain in your own brokerage account and verify the live bid before placing any order. Use limit orders, not market orders. Nothing here is a recommendation to buy, sell, or hold any security. Every setup is designed to show how the Wheel Strategy works in practice so readers can make their own informed decisions. Options trading involves substantial risk and is not suitable for all investors. The author may hold positions in securities discussed. Always do your own research and size positions to your own risk tolerance.
Nvidia designs the GPUs that power the AI infrastructure build-out. IV at 37.2% is running cheap versus its own recent realized vol (0.78x), meaning the market is pricing in less movement than NVDA has actually delivered. The 14-day cycle keeps duration short. This is a full wheel pair with a staged structure where the call expires 8 days after the put.
The put pays $202 on $20K collateral at 26.4% annualized. If assigned, the $220 call adds $353 at 26.6% annualized for a combined 53.0% annualized yield. The call sits 12.9% above cost basis. Daily efficiency runs $39.64 across the pair. CC 50% profit target: $176.
Target runs big-box retail across the U.S. The stock sits 21.6% above its 200-SMA at $130.74, with a steady uptrend and modest 2.8% gain over the past month. IV at 29.7% is fair versus realized vol. The 29-day cycle gives theta room to work.
The put pays $199 on $12.5K collateral at 20.0% annualized. CSP-only. If assigned, target a covered call near $127.50 (~4% above cost basis, ~0.30 delta) in the August 21 monthly cycle. Cost basis would be $123.01.
Amazon runs e-commerce and cloud infrastructure (AWS). The stock pulled back 5.8% over the past month to $244.39, putting it 5.0% above the 200-SMA. IV at 30.7% is cheap versus realized (0.95x). This is a full wheel pair with a staged structure where the call expires 7 days after the put.
The put pays $333 on $23.5K collateral at 23.5% annualized. If assigned, the $260 call adds $333 at 17.1% annualized for a combined 40.6% annualized yield. The call sits 13.7% above cost basis. Daily efficiency runs $30.27. CC 50% profit target: $166.
Broadcom designs semiconductor and infrastructure software products, including the VMware portfolio it acquired. IV at 49.1% is running cheap versus realized (0.63x). The stock is 14.3% above the 200-SMA at $411.35, with 7.6% cushion to the $380 strike. The $938 premium on $38K collateral makes this one of the richest CSP entries in the report.
The put pays $938 on $38K collateral at 31.1% annualized. CSP-only. If assigned, target a covered call near $385 (~4% above cost basis, ~0.30 delta) in the August 21 monthly cycle. For chips/mega-cap tech, write at 0.15–0.20 delta instead of 0.30 if the tape stays choppy. Cost basis would be $370.62.
Affirm operates the buy-now-pay-later platform embedded in checkout flows at Amazon, Shopify, and Walmart. The stock ran 13.2% last month to $73.92, pushing it 10.9% above the 200-SMA. IV at 60.8% is cheap versus realized (0.86x). The 8.7% cushion is the widest among the sub-$10K setups.
The put pays $222 on $6.8K collateral at 41.4% annualized. CSP-only. If assigned, target a covered call near $68 (~4% above cost basis, ~0.30 delta) in the August 21 monthly cycle. For tech/fintech, write at 0.15–0.20 delta if the tape stays choppy. Cost basis would be $65.28.
Ten more setups below. LYB and NEM from Materials. ABNB, GOOGL, and TSLA spanning Consumer and Communication Services. VST from Utilities. APP from Communication Services. SWKS from Tech. AAPL as a full pair. WMT from Staples.
IV ranging from 23.2% to 67.5%. Four full pairs with combined yields reaching 56.9% (TSLA) and 53.0% (NVDA). 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.
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