#ORCL Wheel Strategy
| Fundamental Fridays Ep. 23 — FUNDAMENTAL FRIDAYS #ORCL Wheel Strategy. This episode picks up right where the wheel strategy is supposed to pick up: Oracle got put to the show’s paper trading account at 145.77 after last week’s short put, and now it’s time to sell the covered call side of the trade. If you’ve been following the Fundamental Fridays series, this is the episode that actually completes the loop and shows why the wheel strategy has become such a popular income approach for options traders who own or want to own quality stocks. Brian Overby walks through the logic methodically. With 100 shares of Oracle now sitting in the account, he goes looking for a covered call roughly 45 days out, though he ends up testing a shorter 35-day window given how rich Oracle’s implied volatility is running at the time, somewhere around 73 percent. His target for the call side is a bit different than the put side of the wheel — where puts aim for four to five percent premium, calls are dialed back to one to two percent, because you’re trying to protect upside participation rather than maximize premium capture. He settles on the 160 strike, noting it sits close to a one standard deviation move, which the Tradier Pro platform highlights directly on the option chain, a small but genuinely useful feature he points out for anyone following along on their own screen. The trade brings in $360, which works out to about 2.4 percent of the current stock price, a bit above his stated goal, and he’s candid about why: Oracle’s elevated volatility is a double-edged sword. It pads the premium, but it also reflects the market pricing in real uncertainty, tied back to rate hike expectations discussed on a prior episode. There’s a nice moment where he acknowledges the core tension of the wheel: if the stock doesn’t move much, this strategy performs beautifully, but a sharp drop leaves you holding shares that lost value while still short calls against them. That kind of honest risk framing is what separates this show from a lot of options content that only talks about the wins. Beyond the Oracle trade, the episode gives a fast tour of the rest of the paper portfolio. Apple has been rolled into a March 19th long call after the October position was closed for a profit, and there’s discussion of selling a fresh put against it next week to keep generating income on top of the existing call. Netflix is closing in on assignment on its short put, which would take the position to 200 shares and open the door to selling calls against both blocks. Nvidia’s short put, further out to October 9th, gets a mention too, with a plan to eventually sell a call against that position as well once assignment happens. Overby also touches on the macro backdrop shaping his caution — a midterm election on the horizon, geopolitical noise, and a Fed that had just raised rates, all of which he says argue for some defensiveness even while strong corporate earnings keep propping the market up. It’s a good snapshot of how an experienced options trader balances a systematic strategy with a read on the broader environment, without ever pretending to know exactly where the market goes next. The order for the 160 call goes out at a $3.60 limit and fills without drama, wrapping up another “short and sweet” edition of the show, with the standard reminder that everything shown is educational and not a trade recommendation. |
