🛞 Wheel Strategy Management Alert — SOUN & RGTI Covered Calls
💡Rolling the Wheel Forward: New Covered Calls on SOUN & RGTI.
🔹 Overview
Both SOUN and RGTI offered good setups today to continue the Wheel Strategy with Covered Calls. The plan remains the same:
Sell premium → Reduce cost basis → Generate steady income → Potentially get called away at a gain → Repeat.
Today’s price action + elevated IV gives us a clean opportunity to write new covered calls on both positions.
Let’s break them down.
📌 SOUN — Covered Call Update
Shares: 100
Current Price: ~$12.40
Original CSP assignment cost: $14.62
Premium collected from CSP: $139
Effective cost basis after CSP: $14.62 – $1.39 = $13.23
Last Trade (Covered Call Closed Yesterday)
Sold CC → Collected $28 premium
Closed at 75% profit in just 3 days
This is exactly how the Wheel compounds:
Premium from CSP → Premium from CC → Lower cost basis while stacking cash.
Today’s Play
Price finally gave us a relief bounce after a long slide, IV is still high, and SOUN is trading below our cost basis — perfect combination for selling another covered call.
Goal With Today’s Covered Call
Generate more premium while waiting for a base
Reduce effective cost basis even further
Set up a potential call-away only if SOUN breaks trend convincingly
If SOUN, gets called away at $16.50 that would mean I lock in gains on top of all the premium already collected.
📌 RGTI — Covered Call Update
RGTI also found a short-term bounce today, giving us favorable call pricing.
Shares: 100
Assigned Monday via CSP
CSP premium collected: $111
Cost basis after CSP:
$38.00 – $1.11 = $36.89
Why Sell a Covered Call Today?
The bounce gives better premium than we had earlier this week
IV remains elevated due to volatility and recent trend shifts
The chart is still correcting, so upward continuation may be limited short-term This is exactly when we want to sell calls
Goal With Today’s Covered Call
Continue lowering cost basis from $36.89
Earn income while the chart stabilizes
Potentially get called away above our adjusted basis for a net gain
RGTI, being called away at $40 would lock in a large gain from your discounted assignment at $36.89, plus the covered call premium on top.
RGTI’s trend is weak, but NOT broken. The call premium compensates us while we wait for the chart to set up again. That’s textbook wheel management.
🧠 Strategy Notes
Both trades follow perfect Wheel progression:
Sell CSP → Collect premium
Get shares at a discount
Sell CCs while the stock stabilizes
Either get called away (profit) or repeat (more profit)
The mission is to:
Generate continuous income
Reduce cost basis
Control risk
Let probabilities work in our favor
This is where the Wheel shines.
✔️ Final Thoughts
Both SOUN and RGTI gave us clean entries today. When you’re trading the Wheel, these are the moments you want—oversold charts bouncing into resistance with elevated IV.
I’ll continue managing these exactly the same way:
Stay patient
Sell premium
Reduce basis
Don’t overreact to short-term volatility
Repeat until called away
This is how you turn a tough market into consistent income.
*Disclaimer: The examples in The Options Oracle are my opinion, not financial advice.