NKLA Options Trading — Covered Calls, Puts & the Wheel
A complete guide to selling options on Nikola Corporation. Expected premiums, strike selection, real example trades, and the four strategies that actually work for NKLA.
Why trade options on NKLA?
NKLA (Nikola Corporation) is a small-cap industrials name with a low share price and excellent options liquidity. Implied volatility on this ticker is elevated, so option premiums are rich — but the same volatility cuts both ways and can move the stock hard in either direction. It pays no dividend, so every dollar of income must come from the options you sell.
Typical monthly premium collected on NKLA runs around 3.5-6.0% of capital, which annualizes to roughly 42-72% if you sell new contracts every cycle. Capital required to run a single contract wheel on NKLA is under $5,000 — the share price and the 100-share lot size set the minimum, not the strategy.
Four strategies that work on NKLA
NKLA Covered Call
Sell upside calls against 100 shares you already own to collect premium every month while capping your upside.
Read the NKLA Covered Call guide →NKLA 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 NKLA Cash-Secured Put guide →NKLA Wheel
Alternate between cash-secured puts and covered calls on the same ticker to generate continuous premium income.
Read the NKLA Wheel guide →NKLA 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 NKLA Poor Man's Covered Call guide →NKLA options FAQ
What is the best strike price for a NKLA covered call?
On NKLA, target 12-18% out of the money at 0.10-0.20 delta. On a very 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 NKLA?
Typical monthly premium on NKLA is 3.5-6.0% of position value, annualizing to 42-72% 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 NKLA cash-secured put?
A delta of 0.10-0.20 on NKLA balances premium income with assignment probability. Lower delta is warranted here because a single gap down can drop the stock 10%+
How much cash do I need to sell a put on NKLA?
Cash required is 100 × strike price. For NKLA, 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 NKLA a good stock for the wheel strategy?
NKLA is excellent for the wheel because of its penny-wide spreads and elevated IV (high premium, higher assignment risk). No dividend means all your return comes from premiums and price appreciation.
Can you run a poor man's covered call on NKLA?
Yes. Buy a 0.80+ delta LEAPS on NKLA dated 12-18 months out as your synthetic long, then sell short-dated calls 12-18% above the stock at 0.10-0.20 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 NKLA options strategy trades?
Use 14-28 DTE so you can react to sharp IV crushes and moves as a default for NKLA. Shorter expirations let you react to IV resets and price gaps.
Is NKLA 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.
Run the numbers on NKLA yourself
Use the free OptionsPilot calculator to price covered calls and cash-secured puts on NKLA with live quotes.
Open the NKLA Strike Finder →