Wheel strategy · $HOOD
Wheeling $HOOD covered calls & cash-secured puts
Robinhood Markets, Inc. last traded at $77.86 (Nov 13, 2026). The featured monthly expiry is Dec 18, 2026, 34 days out.
Price
$77.86
52-week $63.52 – $139.75
Volatility
71%
3-month historical
Expected move
±$16.80
±21.6% to Dec 18, 2026
Dividend yield
None
Trailing 12 months
Next earnings
Wk of Feb 8
01
The numbers that matter
What a wheel seller checks before opening a trade.
Volatility & expected move
Historical volatility of 71% implies a one-standard-deviation move of about ±$16.80 (21.6%) by Dec 18, 2026 — a range of roughly $61.06 to $94.66.
Dividends
$HOOD paid no dividend in the last 12 months.
Earnings
Next report expected: Wk of Feb 8
The next report is after the Dec 18, 2026 expiry — a ~30-day trade avoids it.
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
- $70.00
- Delta (this strike)
- 0.26
- Premium
- $2.85
- Cash secured
- $7,000.00
- Credit collected
- $285.00
- Return on capital
- 4.07% · 43.7% annualised
- Breakeven
- $67.15
- Cushion to breakeven
- 13.8%
- Chance of assignment
- 34%
Premium = last trade on Nov 13, 2026 (delayed; the live bid/ask can differ).
Open in the calculatorCovered call
- Strike
- $90.00
- Delta (this strike)
- 0.26
- Premium
- $2.20
- Share cost
- $7,786.00
- Credit collected
- $220.00
- Return on capital
- 2.83% · 30.3% annualised
- If called away (this cycle)
- 18.42%
- Breakeven
- $75.66
- Chance of being called
- 20%
Assumes 100 shares bought at today’s price. Premium = last trade on Nov 13, 2026 (delayed; the live bid/ask can differ).
Open in the calculator03
How the wheel works on $HOOD
Sell a cash-secured put. At a $70.00 strike you would collect about $2.85 per share and need $7,000.00 set aside. If $HOOD stays above $70.00 until Dec 18, 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 — $67.15 in the example above — not the strike itself.
Sell covered calls above your cost. A $90.00 call would pay about $2.20 per share; if $HOOD finishes above $90.00, the shares are called away and the cycle starts again.
$HOOD is volatile: the premium looks generous because the stock can move a long way. Size the position so an assignment after a large drop is still a position you can hold.
04
YieldCove research on $HOOD
Robinhood: platform momentum meets a demanding valuation
Robinhood has turned rapid customer-asset growth into real GAAP profit and a broader financial platform, but cyclical revenue, fresh financing and an earnings event make valuation discipline essential.
Read the research05
Common questions
What the numbers mean — and what they leave out.
- What strike should I use to wheel $HOOD?
- Many wheel sellers start near 30 delta, about 30 days out. With $HOOD at $77.86, that was roughly a $70.00 put and a $90.00 covered call for the Dec 18, 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 $HOOD?
- One cash-secured put reserves 100 × the strike: about $7,000.00 at a $70.00 strike. That cash stays locked until the put expires, is closed, or you are assigned.
- Does $HOOD report earnings before the next monthly expiry?
- No — the next report (Wk of Feb 8) is after the Dec 18, 2026 expiry.
- Does $HOOD pay a dividend, and why does it matter for the wheel?
- It paid no dividend in the last 12 months, so the income comes from option premium alone — and there is no ex-dividend early-assignment risk on covered calls.
- Is wheeling $HOOD 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 $HOOD.
06
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 Nov 13, 2026.
Educational content only — not financial advice or a recommendation to buy or sell $HOOD 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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