SON Options Trading — Covered Calls, Puts & the Wheel
A complete guide to selling options on Sonoco Products. Expected premiums, strike selection, real example trades, and the four strategies that actually work for SON.
Why trade options on SON?
SON (Sonoco Products) is a mid-cap materials name with a low share price and fair options liquidity. Implied volatility is low, so premiums are modest. Traders use this name when they want stability and a low probability of assignment rather than maximum yield. It also pays a dividend, which adds a second income stream on top of the premium you collect.
Typical monthly premium collected on SON runs around 0.5-1.0% of capital, which annualizes to roughly 6-12% if you sell new contracts every cycle. Capital required to run a single contract wheel on SON is under $5,000 — the share price and the 100-share lot size set the minimum, not the strategy.
Four strategies that work on SON
SON Covered Call
Sell upside calls against 100 shares you already own to collect premium every month while capping your upside.
Read the SON Covered Call guide →SON 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 SON Cash-Secured Put guide →SON Wheel
Alternate between cash-secured puts and covered calls on the same ticker to generate continuous premium income.
Read the SON Wheel guide →SON 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 SON Poor Man's Covered Call guide →SON options FAQ
What is the best strike price for a SON covered call?
On SON, target 3-5% out of the money at 0.25-0.35 delta. On a low-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 SON?
Typical monthly premium on SON is 0.5-1.0% of position value, annualizing to 6-12% 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 SON cash-secured put?
A delta of 0.25-0.35 on SON 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 SON?
Cash required is 100 × strike price. For SON, 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 SON a good stock for the wheel strategy?
SON is workable for the wheel because of its reasonable spreads and low IV (modest premium, low 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 SON?
Yes. Buy a 0.80+ delta LEAPS on SON dated 12-18 months out as your synthetic long, then sell short-dated calls 3-5% above the stock at 0.25-0.35 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 SON options strategy trades?
Use 30-45 DTE as a default for SON. This is the classic theta sweet spot and works well on a stable ticker like this.
Is SON suitable for beginners selling options?
Mostly yes, though beginners should use small size and confirm liquidity on each expiration they trade. Always check the bid/ask spread before entering — anything wider than 5% of the mid price is a warning sign.
Run the numbers on SON yourself
Use the free OptionsPilot calculator to price covered calls and cash-secured puts on SON with live quotes.
Open the SON Strike Finder →