WFC Wells Fargo & Co.

Wells Fargo & Co. (WFC) is a financial stock that shows up on a lot of wheel traders' watchlists — and for good reason. Financials typically correlate with interest-rate cycles and credit conditions. Premiums are moderate but steady, and many of these names pay dividends — a nice bonus while you hold assigned shares.

Here's the playbook. You start by selling a cash-secured put on WFC at a strike where you'd genuinely want to own 100 shares. Most financials sit in a middle price range that keeps capital requirements manageable for mid-sized accounts. If the put expires worthless, you pocket the premium and sell another. If you get assigned, you take delivery of the shares and pivot to selling covered calls above your cost basis until the position is called away. That full cycle — put, assignment, call, called away — is the wheel.

Banks and financial companies can gap on Fed decisions and earnings, so keep the economic calendar handy alongside the earnings calendar. Always check the earnings calendar before selling a new contract on WFC — getting assigned the day before an earnings print is a position-management headache you don't need.

If you're considering WFC for the wheel, run the numbers first. The wheel strategy calculator will model your full cycle return, the CSP calculator breaks down annualized yield by strike and expiration, and the covered call calculator helps you pick the right exit strike once you're holding shares. All free, no sign-up required.