We’ve officially completed our first full Wheel cycle with Fluor Corporation (FLR) — and this is a great real-world example of how the strategy actually plays out from start to finish.
Let’s walk through it step by step.
Step 1: Sell the Put
August 27, 2025 We sold a put option on FLR and collected: $40 in premium. This option expired worthless on September 19, 2025.
September 24, 2025 We sold another put option and collected: $60 in premium. This also expired worthless on October, 17, 2025.
October 27, 2025 We sold a put option again and collected: $180 in premium.
At this point, we were getting paid to potentially buy the stock at our chosen strike price. That’s the key mindset shift with the Wheel — you’re either collecting income, or buying shares at a discount (because of the premium received).
Step 2: Assignment
November 21, 2025 The stock dipped below our strike price, and we were assigned.
- Purchased 100 shares Total cost: $4,500
But remember — we already collected $180 in premium. That effectively lowered our real cost basis. Adjusted cost basis: $4,500 – $180 = $4,320
That detail matters. Premium reduces risk.
Step 3: Sell the Covered Call
January 21, 2026 Now that we owned the shares, we moved to the next phase of the Wheel — selling a covered call.
- Collected $150 in premium
Again, we’re generating income while holding the stock.
Step 4: Shares Called Away
February 20, 2026 The stock rose above our call strike, and we were assigned.
- Sold 100 shares for $4,750
Capital gain:
$4,750 – $4,500 = $250
💰 Total Profit Breakdown
Let’s add everything together.
Premium from put: $40
Premium from put: $60
Premium from put: $180
Premium from call: $150
Capital gain: $250
Total gross profit: $680
Commissions paid: $14.51
Net profit: $665.49
📌 What This Shows About the Wheel
This is exactly how the Wheel is designed to work:
- Get paid to potentially buy a stock you’re comfortable owning
- Generate income while holding it
- Sell at a profit
- Repeat the process
You’re stacking income from both sides — premium plus price appreciation.
Now that the shares have been called away, the cycle resets.
👉 Next step: Sell another put and start the Wheel again.
If you’re running this strategy, remember: the key isn’t just the premium — it’s choosing solid companies and staying disciplined with strike selection and position sizing.
Consistency beats excitement in options trading.
