M Options Trading — Covered Calls, Puts & the Wheel
A complete guide to selling options on Macy's Inc.. Expected premiums, strike selection, real example trades, and the four strategies that actually work for M.
Why trade options on M?
M (Macy's Inc.) is a small-cap consumer discretionary name with a low share price and good options liquidity. Implied volatility is high enough to pay meaningful premium without being wild, which is why this ticker shows up frequently in wheel-strategy watchlists. It also pays a dividend, which adds a second income stream on top of the premium you collect.
Typical monthly premium collected on M runs around 2.0-3.5% of capital, which annualizes to roughly 24-42% if you sell new contracts every cycle. Capital required to run a single contract wheel on M is under $5,000 — the share price and the 100-share lot size set the minimum, not the strategy.
Four strategies that work on M
M Covered Call
Sell upside calls against 100 shares you already own to collect premium every month while capping your upside.
Read the M Covered Call guide →M 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 M Cash-Secured Put guide →M Wheel
Alternate between cash-secured puts and covered calls on the same ticker to generate continuous premium income.
Read the M Wheel guide →M 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 M Poor Man's Covered Call guide →M options FAQ
What is the best strike price for a M covered call?
On M, target 8-12% out of the money at 0.15-0.25 delta. On a high-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 M?
Typical monthly premium on M is 2.0-3.5% of position value, annualizing to 24-42% 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 M cash-secured put?
A delta of 0.15-0.25 on M 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 M?
Cash required is 100 × strike price. For M, 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 M a good stock for the wheel strategy?
M is solid for the wheel because of its reasonable spreads and elevated IV (high premium, higher 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 M?
Yes. Buy a 0.80+ delta LEAPS on M dated 12-18 months out as your synthetic long, then sell short-dated calls 8-12% above the stock at 0.15-0.25 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 M options strategy trades?
Use 21-35 DTE to capture IV without excess gamma risk as a default for M. This window captures the steepest part of the theta curve without excess gamma risk.
Is M 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 M yourself
Use the free OptionsPilot calculator to price covered calls and cash-secured puts on M with live quotes.
Open the M Strike Finder →