The Wheel Strategy is a powerful method for generating steady income using cash-secured puts and covered calls. At Option Samurai, we’ve built tools and data specifically designed to help traders at every stage of the wheel, making it faster, smarter, and more informed.
This article will outline how we support Wheel traders and how you can start using our tools right now for this strategy.
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1. Use Our Predefined “Wheel Strategy” Scans
2. Scan for Naked Puts and Covered Calls (Based on Your Wheel Stage)
3. Use “Value on Strike” to Understand Assignments Before They Happen
4. Benchmark Your Covered Calls
5. Read Our Guide: The Wheel Options Strategy
1. Use Our Predefined “Wheel Strategy” Scans
In the Options Screener, head over to the Predefined Scans section and look for the “Wheel” tag. We’ve curated multiple ready-to-use scans specifically for Wheel traders at different stages of the strategy.
Here is more information about the two scans you can see under the Wheel tag:
Wheel Candidates (Classic Wheel Strategy)
This scan (linked at the bottom of this section) identifies high-probability naked puts on quality stocks with dividends.
It’s built for traders who are just starting the wheel or looking to re-enter.
The idea is the following:
We want to look for naked puts with annualized return > 15%
Additionally, to have an edge, we want to focus on good companies with dividends
If assigned (assignment will happen to every wheel trader from time to time), the stock has a typical covered call annualized return > 12%
You can use this scan to enter trades that align with the classic Wheel strategy: sell puts on stocks you want to own, and collect premium while you wait.
Our classic wheel strategy predefined scan (Wheel Candidates)
Wheel on Steroids (Long-Term Covered Straddle Strategy)
We have also built a different version of this strategy under a scan named “Wheel on Steroids: Long-Term Covered Straddle Picks on Good Dividend-Paying Companies.” You can find a link to this scan at the bottom of this section.
This scan is designed for experienced Wheel traders looking for enhanced yield. The idea is that you can own 100 shares and sell a straddle to collect high premiums over time (this strategy is normally called “covered straddle”; we’re leaving a link on the topic at the bottom of this section).
If assigned on the put leg, you double down (own 200 shares at a low average cost) and continue selling covered calls. Clearly, you should only consider this strategy if you are really convinced that the underlying stock or ETF will move up. In other words, the risk of owning 200 shares in your portfolio should not be an issue that keeps you up at night.
We built this scan using our advanced scanner with the following focus:
Stable stocks: Beta below 1.2 to reduce volatility risk
Income-friendly: Dividend yield greater than 3%
Positive return outlook: Analyst recommendation up to Hold
Premium-rich setups: IV Rank above 50
Targeting LEAPs: Days to expiration set to >120 days
Benchmark data included: We’ve added the annualized Covered Call Benchmark Return, so you can compare premium performance across candidates
This strategy works best if you’re willing to hold the stock long-term and potentially scale in (e.g., doubling to 200 shares) if assigned. By combining both put and call data, this scan highlights the most promising straddle setups on reliable, dividend-paying stocks.
Learn about the covered straddle strategy (Covered Straddle - How It Works and When to Use It)
Our advanced “wheel on steroids” predefined scan (Wheel on Steroids: Long-Term Covered Straddle Picks on Good Dividend-Paying Companies)
2. Scan for Naked Puts and Covered Calls (Based on Your Wheel Stage)
The Wheel strategy has two sides, and we cover both:
Cash-Secured Puts: Use our Naked Put scanner to find ideal entry points with favorable premium and probability.
Covered Calls: Once assigned, switch to our Covered Call scanner to generate income and manage your exit strategy.
Depending on the stage of the will at which you find yourself, pick the right scan for you. In this case, you can use all our naked put predefined scans:
You can also leverage our covered call predefined scans:
Or you can create your own; just click “Compose New Scan,” then choose either “Naked Put” or “Covered Call” from the dropdown menu:
You can customize both scans to match your
Desired ROI
Days to expiration
Probability of profit
Risk/reward preferences
Make sure you check out all the data points we offer by clicking the “Add Filters” button on the scan you like.
Naked put strategy guide (Finding the Best Naked Put Options (with a Great Edge))
Covered call strategy guide (Covered Call Strategy: From Theory to Practice [When to Use It and When to Avoid It])
3. Use “Value on Strike” to Understand Assignments Before They Happen
One of the most powerful features in Option Samurai is our unique “Value on Strike” data points. These filters help you evaluate a stock’s fundamentals or technicals as if you were assigned at a specific strike price, letting you make smarter decisions when selling puts or managing covered positions. This is just like playing chess: you should not play without a plan for what your next move could be, and trading a wheel also requires that type of reasoning.
You’ll get instant answers to questions like
What would the PE ratio be if I got assigned at this strike?
What dividend yield would I lock in?
How far is this strike from the target price or 200-day moving average?
The idea is that when selling options (especially puts), you want to know exactly what you’re getting into if assigned. Value-on-Strike metrics translate the fundamentals to the strike price, so you're no longer guessing.
Just to give you a better idea, here are ways in which you could use the “on strike” values:
Sell puts only when Dividend Yield on Strike > 5% and Payout Ratio < 50%
Look for strikes where Future PE on Strike < 20 and return > 10% annually
Build scans where Strike PE < historical median PE to find undervalued entry points
Sell call spreads where the strike is above the 52-week high and profit ratio > 25%
Use Distance from Target Price on Strike to buy calls with long upside runway
And here is a list of the available “on strike” data points:
PE on Strike
Future PE on Strike (using analysts’ earnings forecasts)
Dividend Yield on Strike
52W High/Low on Strike
MA200 on Strike
Distance from Target Price
ATR/Standard Deviation on Strike
To add these, just open the Add Filter window in the screener and search for "strike" and select the values you need:
This is an advanced feature that fits perfectly with Wheel trading, helping you sell puts on fundamentally strong stocks at prices you'd be happy to own (with just a few clicks).
On-strike datapoints guide (Value on Strike (PE, Future PE, Dividend Yield and more))
4. Benchmark Your Covered Calls
When managing the covered call leg of the Wheel, you should have an idea whether your return is competitive. In fact, you’ll probably want to know this before opening the wheel (hence, before opening the naked put). That’s why we introduced the Covered Call Benchmark Return datapoint (we referenced this information above, and it’s now time to give you more details on it).
The idea is the following: we calculate the annualized return of the at-the-money covered call, using the option closest to
30 days to expiration (DTE)
50 delta
This acts as a baseline metric to compare your trades against. This helps you because you can use it as a reference when evaluating put-selling opportunities (if assigned, you know the covered call yield potential).
Once again, think of the Wheel strategy like a game of chess. The best chess players don’t just think about their next move; they plan several moves ahead. When you sell a put, you’re making your opening move. But a smart trader already knows what the next steps might look like if they get assigned. That’s where having a strong “Plan B” (i.e., a solid covered call) becomes important.
The market won’t always follow your script. But by anticipating your covered call leg before assignment, you’re already preparing yourself for the second and third move, which gives you a clear edge.
5. Read Our Guide: The Wheel Options Strategy
If you want to fully understand how to trade the Wheel Strategy (and how to get the most out of our tools while doing it), check out our in-depth wheel options strategy guide (linked at the bottom of this section).
In this article, you’ll learn:
The step-by-step process of running the Wheel (from stock selection to selling puts and calls)
How to collect income consistently using premiums and dividends
When to roll, hold, or exit your positions
Key risk management techniques to protect against assignment or missed upside
How to use Option Samurai filters (like Value on Strike and Benchmark Return) to boost your strategy
We also cover tips for picking the right stocks, managing liquidity, and structuring your trades for repeatable success.
Whether you're just starting or looking to refine your Wheel approach, this guide is a practical deep dive.
Wheel strategy guide (The Wheel Options Strategy: Your Comprehensive Guide to Steady Income Generation)
Try the wheel strategy on our options screener
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