F Options Trading — Covered Calls, Puts & the Wheel
A complete guide to selling options on Ford Motor Company. Expected premiums, strike selection, real example trades, and the four strategies that actually work for F.
Why trade options on F?
F (Ford Motor Company) is a large-cap consumer discretionary name with a low share price and excellent options liquidity. Implied volatility is moderate — enough premium to make selling options worthwhile, without the heart-stopping price swings you get on speculative names. It also pays a dividend, which adds a second income stream on top of the premium you collect.
Typical monthly premium collected on F runs around 1.0-2.0% of capital, which annualizes to roughly 12-24% if you sell new contracts every cycle. Capital required to run a single contract wheel on F is under $5,000 — the share price and the 100-share lot size set the minimum, not the strategy.
Live Data Snapshot
See the full F case study at /stocks/f-covered-calls-cash-secured-puts for a sample trade and full strategy breakdown.
Four strategies that work on F
F Covered Call
Sell upside calls against 100 shares you already own to collect premium every month while capping your upside.
Read the F Covered Call guide →F 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 F Cash-Secured Put guide →F Wheel
Alternate between cash-secured puts and covered calls on the same ticker to generate continuous premium income.
Read the F Wheel guide →F 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 F Poor Man's Covered Call guide →F options FAQ
What is the best strike price for a F covered call?
On F, target 5-8% out of the money at 0.20-0.30 delta. On a moderate-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 F?
Typical monthly premium on F is 1.0-2.0% of position value, annualizing to 12-24% 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 F cash-secured put?
A delta of 0.20-0.30 on F 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 F?
Cash required is 100 × strike price. For F, 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 F a good stock for the wheel strategy?
F is excellent for the wheel because of its penny-wide spreads and moderate IV (good premium/risk balance). 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 F?
Yes. Buy a 0.80+ delta LEAPS on F dated 12-18 months out as your synthetic long, then sell short-dated calls 5-8% above the stock at 0.20-0.30 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 F options strategy trades?
Use 30-45 DTE as a default for F. This is the classic theta sweet spot and works well on a stable ticker like this.
Is F suitable for beginners selling options?
Yes — it's a well-known, liquid name with established options markets, which is what beginners need.
Run the numbers on F yourself
Use the free OptionsPilot calculator to price covered calls and cash-secured puts on F with live quotes.
Open the F Strike Finder →