PARA Options Trading — Covered Calls, Puts & the Wheel
A complete guide to selling options on Paramount Global. Expected premiums, strike selection, real example trades, and the four strategies that actually work for PARA.
Why trade options on PARA?
PARA (Paramount Global) is a small-cap communication name with a low share price and excellent 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 PARA 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 PARA is under $5,000 — the share price and the 100-share lot size set the minimum, not the strategy.
Four strategies that work on PARA
PARA Covered Call
Sell upside calls against 100 shares you already own to collect premium every month while capping your upside.
Read the PARA Covered Call guide →PARA 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 PARA Cash-Secured Put guide →PARA Wheel
Alternate between cash-secured puts and covered calls on the same ticker to generate continuous premium income.
Read the PARA Wheel guide →PARA 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 PARA Poor Man's Covered Call guide →PARA options FAQ
What is the best strike price for a PARA covered call?
On PARA, 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 PARA?
Typical monthly premium on PARA 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 PARA cash-secured put?
A delta of 0.15-0.25 on PARA 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 PARA?
Cash required is 100 × strike price. For PARA, 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 PARA a good stock for the wheel strategy?
PARA is excellent for the wheel because of its penny-wide 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 PARA?
Yes. Buy a 0.80+ delta LEAPS on PARA 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 PARA options strategy trades?
Use 21-35 DTE to capture IV without excess gamma risk as a default for PARA. This window captures the steepest part of the theta curve without excess gamma risk.
Is PARA 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 PARA yourself
Use the free OptionsPilot calculator to price covered calls and cash-secured puts on PARA with live quotes.
Open the PARA Strike Finder →