🛞 Wheel Strategy Management Alert — $HUT Covered Call
💡Rolling the Wheel Forward: New Covered Call on HUT
I have a good entry today to start writing covered calls on HUT.
📌 HUT — Covered Call Update
Shares: 100
Current Price: trading in the high-$37s / low-$38s
CSP Assignment Cost: $45.00
Premium collected from CSP: $330
Effective Cost Basis:
$45.00 – $3.30 = $41.70
Today’s Price Action
HUT is green today, bouncing off the $35–36 area and pushing back into the upper-$30s. After several red sessions, this is the kind of relief move I look for:
Bounce off short-term support
IV still elevated
Better call pricing than earlier in the week
Momentum stabilizing after the selloff
That’s exactly when I want to sell calls.
Today’s Play
This covered call alone lowers my basis from $41.70 → $39.86, and more importantly, it pays me to sit through the volatility instead of reacting emotionally.
Goal With Today’s Covered Call
Generate income while HUT stabilizes
Reduce cost basis even further
Let HUT rebuild trend without tying my hands
Set up a clean call-away only if HUT makes a decisive move higher
If HUT gets called away at $52, that locks in:
Profit from the CSP
Profit from the covered call
Stock appreciation from ~$39.86 → $52
That’s the full Wheel cycle working exactly as intended.
🧠Strategy Notes
This trade is following the Wheel perfectly:
Sell CSP → Collect premium
Get assigned at a discount
Sell CC → Lower cost basis
Either keep stacking premium or get called away at a profit
The mission stays the same:
Generate continuous income
Keep lowering basis
Control risk during volatility
Let probabilities do the heavy lifting
Assignment wasn’t a problem — it was the next step.
*Disclaimer: The examples in The Options Oracle are my opinion, not financial advice.
11.17.25. Stock $38.57. Cost $41. Net debit (cost basis) after selling stock's covered calls $37.80.
Sold stock 11.21.25 (4 days) $41 strike (no gain) covered calls for $1.64 per share, or $164 per call option contract. Delta .41 (41% probability of being called). Implied volatility an extremely hit 158%. The bid asks on the call options are very wide. Options volume is low. I had to lower my ask price several times as the stock fell from its highs to get a fill. If the stock is called, the RoR will be 41-37.80=$3.20 per share, or 7.8%. The annalized RoR about 7.8 x 23=179.4%. Not bad. The 23 is the 23 trades that might be done if a trader did the same kind of covered calls trades about 23 times every 12 months. If I could do this covered call trade 23 times a year my per share premium income would be $1.64*23=$37.72 . It won't happen because prices fluctuate and I'm not perfect.:)