FUN Options Trading — Covered Calls, Puts & the Wheel
A complete guide to selling options on Cedar Fair L.P.. Expected premiums, strike selection, real example trades, and the four strategies that actually work for FUN.
Why trade options on FUN?
FUN (Cedar Fair L.P.) is a small-cap consumer discretionary name with a low share price and fair 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 FUN 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 FUN is under $5,000 — the share price and the 100-share lot size set the minimum, not the strategy.
Four strategies that work on FUN
FUN Covered Call
Sell upside calls against 100 shares you already own to collect premium every month while capping your upside.
Read the FUN Covered Call guide →FUN 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 FUN Cash-Secured Put guide →FUN Wheel
Alternate between cash-secured puts and covered calls on the same ticker to generate continuous premium income.
Read the FUN Wheel guide →FUN 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 FUN Poor Man's Covered Call guide →FUN options FAQ
What is the best strike price for a FUN covered call?
On FUN, 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 FUN?
Typical monthly premium on FUN 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 FUN cash-secured put?
A delta of 0.20-0.30 on FUN 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 FUN?
Cash required is 100 × strike price. For FUN, 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 FUN a good stock for the wheel strategy?
FUN is workable for the wheel because of its reasonable 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 FUN?
Yes. Buy a 0.80+ delta LEAPS on FUN 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 FUN options strategy trades?
Use 30-45 DTE as a default for FUN. This is the classic theta sweet spot and works well on a stable ticker like this.
Is FUN suitable for beginners selling options?
Not ideal for beginners. Smaller-cap names can have wider spreads and sharper moves. Start with large caps or major ETFs first. Always check the bid/ask spread before entering — anything wider than 5% of the mid price is a warning sign.
Run the numbers on FUN yourself
Use the free OptionsPilot calculator to price covered calls and cash-secured puts on FUN with live quotes.
Open the FUN Strike Finder →