UBER Wheel: Strike Selection, Premium & Risk

How to sell wheels on Uber Technologies — optimal strikes, expected premium, and the risks that actually matter for a large-cap industrials name.

IndustrialsModerate IVExcellent liquidity

Is UBER a good wheel candidate?

UBER (Uber Technologies) is a large-cap industrials name with a low share price and excellent 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 pays no dividend, so every dollar of income must come from the options you sell.

Strike selection for a UBER wheel

For the UBER wheel, sell puts 7-10% below the current price until you are assigned. Once you own the shares, flip to covered calls 5-8% above your cost basis. On a moderate-volatility name, cycling 30-45 DTE — the sweet spot for theta-to-gamma balance expirations keeps theta working in your favor without over-exposing you to gamma around earnings.

Expected premium and income on UBER

Typical monthly premium collected on UBER 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 UBER is under $5,000 — the share price and the 100-share lot size set the minimum, not the strategy.

Reference Trade

Stock price$75-90
IV rankModerate-High (45-65)
Avg monthly premium2.0-3.5%
Annualized return24-42%

Example Covered Call on UBER

  • Strike: $90 (10% OTM)
  • Expiration: 30 days
  • Premium: $2.80 per share
  • Return if flat: 3.4% ($280)
  • Return if called: 13.4% ($1,100)
  • Probability keep shares: 68% keep shares

Risk management for UBER wheel trades

The wheel works beautifully in sideways and slowly-trending markets but struggles in sharp selloffs where you get put stock well above market and then have to wait for covered-call opportunities at your cost basis. UBER moves in a moderate-volatility range most of the time, but earnings week and sector rotations can still produce 5%+ single-day prints. Industrials are cyclical and react sharply to PMI data, tariff headlines, and infrastructure news.

UBER Wheel FAQ

Is UBER a good stock for the wheel strategy?

UBER is excellent for the wheel because of its penny-wide spreads and moderate IV (good premium/risk balance). No dividend means all your return comes from premiums and price appreciation.

What expiration should I use for UBER wheel trades?

Use 30-45 DTE as a default for UBER. This is the classic theta sweet spot and works well on a stable ticker like this.

Is UBER suitable for beginners selling options?

Yes — it's a well-known, liquid name with established options markets, which is what beginners need.

Related UBER strategies

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