D Options Trading — Covered Calls, Puts & the Wheel
A complete guide to selling options on Dominion Energy. Expected premiums, strike selection, real example trades, and the four strategies that actually work for D.
Why trade options on D?
D (Dominion Energy) is a large-cap utilities name with a low share price and good options liquidity. Implied volatility is low, so premiums are modest. Traders use this name when they want stability and a low probability of assignment rather than maximum yield. It also pays a dividend, which adds a second income stream on top of the premium you collect.
Typical monthly premium collected on D runs around 0.5-1.0% of capital, which annualizes to roughly 6-12% if you sell new contracts every cycle. Capital required to run a single contract wheel on D is under $5,000 — the share price and the 100-share lot size set the minimum, not the strategy.
Four strategies that work on D
D Covered Call
Sell upside calls against 100 shares you already own to collect premium every month while capping your upside.
Read the D Covered Call guide →D Cash-Secured Put
Sell a put backed by cash so you either get paid to wait or acquire the stock at a discount to today's price.
Read the D Cash-Secured Put guide →D Wheel
Alternate between cash-secured puts and covered calls on the same ticker to generate continuous premium income.
Read the D Wheel guide →D Poor Man's Covered Call
Replace the 100 shares with a long-dated deep-ITM LEAPS call and sell short-dated calls against it to reduce capital.
Read the D Poor Man's Covered Call guide →D options FAQ
What is the best strike price for a D covered call?
On D, target 3-5% out of the money at 0.25-0.35 delta. On a low-volatility stock like this, closer-to-the-money strikes chase premium but spike assignment probability to uncomfortable levels.
How much premium can I collect selling calls on D?
Typical monthly premium on D is 0.5-1.0% of position value, annualizing to 6-12% when you roll every cycle. Earnings months can pay 2-3x the normal rate because of elevated IV.
What is the best delta for a D cash-secured put?
A delta of 0.25-0.35 on D balances premium income with assignment probability. Many traders anchor to 0.20 delta as a starting point and adjust based on their willingness to own shares.
How much cash do I need to sell a put on D?
Cash required is 100 × strike price. For D, that's roughly under $5,000 per contract at a typical strike. Most brokers let you use margin, but for a true cash-secured put you set aside the full amount.
Is D a good stock for the wheel strategy?
D is solid for the wheel because of its reasonable spreads and low IV (modest premium, low assignment risk). It also pays a dividend, which you continue collecting while holding the shares between wheel legs.
Can you run a poor man's covered call on D?
Yes. Buy a 0.80+ delta LEAPS on D dated 12-18 months out as your synthetic long, then sell short-dated calls 3-5% above the stock at 0.25-0.35 delta. Capital tied up drops from under $5,000 to roughly 30-50% of that — a meaningful improvement when the share price is a low share price.
What expiration should I use for D options strategy trades?
Use 30-45 DTE as a default for D. This is the classic theta sweet spot and works well on a stable ticker like this.
Is D suitable for beginners selling options?
Yes — it's a well-known, liquid name with established options markets, which is what beginners need. Always check the bid/ask spread before entering — anything wider than 5% of the mid price is a warning sign.
Run the numbers on D yourself
Use the free OptionsPilot calculator to price covered calls and cash-secured puts on D with live quotes.
Open the D Strike Finder →