Trading the Wheel: Classic and Advanced Approaches with Option Samurai
Feb. 18 2026, Updated 4:22 p.m. ET
The Wheel strategy is one of the most widely used option income strategies, but it is often misunderstood or applied too loosely. An advanced options screener such as Option Samurai adds more structure and automation to the process.
Finding the Wheel Scans on Option Samurai
On Option Samurai, users select the Wheel tag inside predefined scans, and traders can more easily distinguish potential Wheel candidates from stocks that may appear attractive due to elevated premiums.
Inside this tag, two distinct approaches emerge: the classic Wheel strategy and a more advanced variation built around covered straddles.
"Wheel Candidate" – The Classic Wheel Strategy on Quality Stocks
The traditional Wheel strategy starts with selling cash-secured puts on stocks the trader is willing to own. If the put expires worthless, premium is collected and the process repeats. If assignment occurs, the trader owns shares and transitions to selling covered calls.
The predefined Wheel Candidates scan on the Option Samurai options screener is designed to support this exact workflow. It looks for naked put opportunities on quality, dividend-paying companies where estimated probabilities and projected annualized returns remain reasonable under more conservative assumptions.
There’s more: the scan also considers what the “typical” covered call return would look like if assignment occurs. This helps ensure that both phases of the Wheel, the put-selling phase and the covered call phase, remain viable.
"Wheel on Steroids" – Covered Straddles on Strong Companies
For traders with more experience and sufficient capital, the Wheel can be enhanced using a covered straddle structure. The idea, this time, is to combine stock ownership with simultaneous call and put selling to increase premium intake. The trader will start the wheel by already owning 100 shares, and selling 2 options (a call and a put) at the same strike and expiration date.
The predefined scan labeled Wheel on Steroids: Long-Term Covered Straddle Picks on Good Dividend-Paying Companies is built specifically for this purpose. It targets stable, dividend-paying companies where long-term ownership is acceptable, and volatility is sufficient to justify selling both sides.
The structure assumes ownership of shares and focuses on high premium collection over time. If the assignment occurs on the put side, the position scales into additional shares at a lower effective cost basis. Covered calls can then be sold on the increased share count, reinforcing the Wheel cycle.
This is not a short-term income play. The scan is designed for traders who are comfortable managing positions over longer horizons and who prioritize cash flow from fundamentally strong companies rather than rapid turnover.
An options screener is essential here, as covered straddles magnify both income and responsibility. Filtering for company quality, dividend stability, and manageable risk, which may support a more measured approach rather than an aggressive one.
Choosing the Right Wheel Structure
The difference between the classic and advanced Wheel is not just complexity, but intent. The classic Wheel prioritizes simplicity and repeatability, while the covered straddle version emphasizes premium maximization on stocks that traders genuinely want to hold.
Both approaches rely on the same principle: assignment should be acceptable, not feared. The Wheel tag inside a professional options screener helps enforce that discipline by filtering out low-quality stocks before any strategy logic is applied.
Final Thoughts
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Trading the Wheel works best when structure replaces improvisation. By using predefined Wheel scans, traders can apply both classic and advanced versions of the strategy to companies that are selected for stability, not just yield.
A robust options screener brings these Wheel-focused scans into a single workflow, making it easier to evaluate candidates, understand assignment outcomes, and manage positions over time with confidence.
Option Samurai offers a free trial that allows users to explore tools designed to support a more structured approach to Wheel strategies.
The information provided in this article is for general informational and educational purposes only. It is not intended as financial advice. Readers should not rely solely on the content of this article and are encouraged to seek professional advice tailored to their specific circumstances. We disclaim any liability for any loss or damage arising directly or indirectly from the use of, or reliance on, the information presented.
