Wheel strategy · $BAC
Wheeling $BAC covered calls & cash-secured puts
Bank of America Corporation last traded at $56.70 (Sep 25, 2026). The featured monthly expiry is Oct 16, 2026, 19 days out.
Price
$56.70
52-week $46.12 – $65.23
Volatility
30%
Implied, at the money
Expected move
±$3.90
±6.9% to Oct 16, 2026
Dividend yield
2.05%
Trailing 12 months
Next earnings
Oct 14, 2026
01
The numbers that matter
What a wheel seller checks before opening a trade.
Volatility & expected move
Implied volatility of 30% implies a one-standard-deviation move of about ±$3.90 (6.9%) by Oct 16, 2026 — a range of roughly $52.80 to $60.60.
3-month historical volatility: 22%.
Dividends
$BAC paid $1.16 per share over the last 12 months (4 payments), a trailing yield of 2.05%.
Next ex-dividend (estimated from its payment history): Dec 4, 2026
Earnings
Next report: Oct 14, 2026 · before the open
Earnings land before the Oct 16, 2026 expiry. A short put or call held through the report carries gap risk: the stock can jump past your strike overnight. Many wheel sellers pick an expiry before the report or size down.
02
Sample trades at ~30 days
One contract at the listed strike closest to 30 delta (its actual delta is shown), computed with the YieldCove calculator’s maths.
Cash-secured put
- Strike
- $55.00
- Delta (this strike)
- 0.32
- Premium
- $0.90
- Cash secured
- $5,500.00
- Credit collected
- $90.00
- Return on capital
- 1.64% · 31.4% annualised
- Breakeven
- $54.10
- Cushion to breakeven
- 4.6%
- Chance of assignment
- 36%
Premium = last trade on Sep 25, 2026 (delayed; the live bid/ask can differ).
Open in the calculatorCovered call
- Strike
- $59.00
- Delta (this strike)
- 0.30
- Premium
- $0.69
- Share cost
- $5,670.00
- Credit collected
- $69.00
- Return on capital
- 1.22% · 23.4% annualised
- If called away (this cycle)
- 5.27%
- Breakeven
- $56.01
- Chance of being called
- 26%
Assumes 100 shares bought at today’s price. Premium = last trade on Sep 25, 2026 (delayed; the live bid/ask can differ).
Open in the calculator03
How the wheel works on $BAC
Sell a cash-secured put. At a $55.00 strike you would collect about $0.90 per share and need $5,500.00 set aside. If $BAC stays above $55.00 until Oct 16, 2026, you keep the premium and can sell another put.
If assigned, you own 100 shares. Your effective cost is the strike minus the premium — $54.10 in the example above — not the strike itself.
Sell covered calls above your cost. A $59.00 call would pay about $0.69 per share; if $BAC finishes above $59.00, the shares are called away and the cycle starts again.
$BAC sits in the middle of the volatility range: premiums are meaningful and moves can be sharp. Position size matters more than strike selection here.
04
Common questions
What the numbers mean — and what they leave out.
- What strike should I use to wheel $BAC?
- Many wheel sellers start near 30 delta, about 30 days out. With $BAC at $56.70, that was roughly a $55.00 put and a $59.00 covered call for the Oct 16, 2026 expiry at the last refresh. Pick a put strike you would genuinely be happy to own the stock at.
- How much money do I need to wheel $BAC?
- One cash-secured put reserves 100 × the strike: about $5,500.00 at a $55.00 strike. That cash stays locked until the put expires, is closed, or you are assigned.
- Does $BAC report earnings before the next monthly expiry?
- Yes — the next report (Oct 14, 2026) lands before the Oct 16, 2026 expiry, so a ~30-day trade would be open through it.
- Does $BAC pay a dividend, and why does it matter for the wheel?
- Yes: $1.16 per share over the last 12 months (a 2.05% trailing yield). While you hold the shares between puts and calls you collect it, but an in-the-money covered call can be assigned early just before the ex-dividend date.
- Is wheeling $BAC safe?
- No options strategy is risk-free. The wheel’s main risk is owning 100 shares after a large drop: premium cushions a fall, it does not prevent one. This page is educational and not a recommendation to trade $BAC.
05
Keep exploring
Track this wheel free
Log the put, the assignment and the calls in one place: YieldCove tracks premium, cost basis and annualised return across the whole cycle — free.
Data: delayed Yahoo Finance prices and option trades, Nasdaq/FMP earnings calendars and the YieldCove catalyst roadmap; refreshed every few hours. As of Sep 25, 2026.
Educational content only — not financial advice or a recommendation to buy or sell $BAC or any option. Options involve risk and are not suitable for every investor. Market data is delayed and may be incomplete. Full disclaimer
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