TXRH Options Trading — Covered Calls, Puts & the Wheel
A complete guide to selling options on Texas Roadhouse. Expected premiums, strike selection, real example trades, and the four strategies that actually work for TXRH.
Why trade options on TXRH?
TXRH (Texas Roadhouse) is a large-cap consumer discretionary name with a mid-range 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 TXRH 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 TXRH is $5,000-$20,000 — the share price and the 100-share lot size set the minimum, not the strategy.
Four strategies that work on TXRH
TXRH Covered Call
Sell upside calls against 100 shares you already own to collect premium every month while capping your upside.
Read the TXRH Covered Call guide →TXRH 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 TXRH Cash-Secured Put guide →TXRH Wheel
Alternate between cash-secured puts and covered calls on the same ticker to generate continuous premium income.
Read the TXRH Wheel guide →TXRH 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 TXRH Poor Man's Covered Call guide →TXRH options FAQ
What is the best strike price for a TXRH covered call?
On TXRH, 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 TXRH?
Typical monthly premium on TXRH 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 TXRH cash-secured put?
A delta of 0.20-0.30 on TXRH 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 TXRH?
Cash required is 100 × strike price. For TXRH, that's roughly $5,000-$20,000 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 TXRH a good stock for the wheel strategy?
TXRH 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 TXRH?
Yes. Buy a 0.80+ delta LEAPS on TXRH 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 $5,000-$20,000 to roughly 30-50% of that — a meaningful improvement when the share price is a mid-range share price.
What expiration should I use for TXRH options strategy trades?
Use 30-45 DTE as a default for TXRH. This is the classic theta sweet spot and works well on a stable ticker like this.
Is TXRH suitable for beginners selling options?
Yes — it's a well-known, liquid name with established options markets, which is what beginners need. Always check the bid/ask spread before entering — anything wider than 5% of the mid price is a warning sign.
Run the numbers on TXRH yourself
Use the free OptionsPilot calculator to price covered calls and cash-secured puts on TXRH with live quotes.
Open the TXRH Strike Finder →