$350+ Nvidia Stock Price Target? This Options Strategy Pays You No Matter What Happens Next.

2026 has been a rollercoaster of a year so far. First, we saw the AI sell-off. Then things got a little brighter, but geopolitical tensions dampened sentiment. Meanwhile, commodities such as oil and gold are hitting new highs, while assets such as Bitcoin are showing continued weakness. 

Now, everyone’s on edge, fingers on the button, waiting for any sign of whichever direction the market is heading next. For traders looking to time the market, this probably isn’t the easiest time. 

But for those incorporating the wheel strategy to generate consistent income, this is a golden opportunity. 

So let me tell you about the strategy and show you a real-world trade example so you’ll know how it should work. 

The “wheel” strategy explained

The wheel strategy is an options-income strategy in which you sell put options to generate premium on the stocks you’re comfortable buying and holding long term. The strategies here are cash-secured puts and, if/when assigned, selling covered calls. 

Cash-secured puts are an options strategy that involves selling a put option while holding enough cash to buy the stock if you’re assigned. If the put expires in the money (ITM), you get assigned and are now obligated to buy 100 shares of the underlying asset at the strike price. Either way, you keep the premium you received in full. 

On the other hand, covered calls involve selling a call option while already owning at least 100 shares of the underlying asset. If the stock stays below the strike price at expiration, the call expires out of the money (OTM), and you keep your shares. If the stock rises above the strike price, the option is ITM, the call is exercised, and your shares are “called away” at the agreed price. Again, you keep the premium either way. 

So, how does this work in the wheel strategy? It’s this simple: 

• Sell a cash-secured put. If the option expires out of the money, sell another.
• If you get assigned, you now have 100 shares of the underlying. You then sell a covered call.
• If that expires out of the money, you keep the premium and do it again.
• If you get assigned, you sell 100 shares at a profit and now have cash on hand. You can then sell a cash-secured put.
• And around the wheel turns. 

Factors to consider before using the wheel strategy

Now, this strategy may start to sound like an infinite money glitch- at least to some . 

It’s not. Like with any investment, it comes with its own set of risks. 

First and foremost, when you sell a cash-secured put, you're exposing yourself to all the downside risks below your strike price. So, if you sell a, let’s say, 600-strike put on Meta and the stock plummets to $550, that means you’re entering a stock position that’s already at a $50-per-share loss. Whatever premium you get from the cash-secured put and succeeding trades may not be enough (at that time) to cover that loss at the end. 

This is why I like to emphasize that it’s better to sell cash-secured puts on assets that you’d like to own for the long term. 

Then, the wheel strategy entails an opportunity cost. If the stock performs strongly while you’re in the covered call phase, you’re giving up upside in exchange for the premium. Same as with a cash-secured put; if the stock falls sharply, you’d have been better off buying a long put in the first place. 

Lastly, the wheel strategy involves a lot of patience and discipline. You’re going to have to watch the underlying asset go up and down for extended periods, all while collecting varying premiums. Remember, FOMO and hindsight can turn into a vicious cycle- and can have a devastating effect on your trading if you don’t stick to a plan. 

Finding cash-secured puts and covered calls on Barchart.com

Barchart can help you find option trades easily. Let’s say, for example, you want to sell a cash-secured put on Nvidia. As of the time of publication, the stock has been trading relatively sideways over the last few months, and the company will release its much-anticipated fiscal fourth-quarter and full-year 2026 financials on February 25, 2026. 

Now, it's probably a little too close to sell cash-secured puts this close to an earnings date, but since the point is to turn it into the wheel strategy, we can make an exception. 

If you go to the stock’s profile page, you can see the Naked Put screener on the left-hand side of the screen: 

Once there, you’ll be brought to the results page. You can change the expiration date to your preferred period. I like to sell options 30 to 45 days out to maximize time value while keeping exposure manageable, so I’ll change this to March 27, 2026. 

Now, we need to select the strike price. For this step, we can use the Options Data Dashboard, found on the left-hand side of the page. 

From here, you’ll be able to quickly see relevant trade details, such as volatility, trend, expected move, and the Put-Call ratio. 

For this example, I’ll use the 50-day moving average of $185 as the basis of my put strike. It represents a widely followed intermediate-term support level that balances safety with premium potential for a 30–45 day option.

Now remember, strike selection will always depend on your trading preference. In this case, I’m more bullish on Nvidia while simultaneously opting to collect more premium in exchange for a higher chance of assignment. 

Now that I have a strike price, let's break down the trade. 

Trade breakdown

According to the screener, you can sell a 185-strike put on Nvidia that expires on March 27, 2025, 34 days from now, and receive $8.55 premium per share or $855 per contract. The trade has a 69% chance of expiring profitably. 

Now, if Nvidia trades above $185 at expiration, you keep the $855 and you're free from any further obligations. You can then sell another cash-secured put to continue the cycle. 

However, if Nvidia stock trades below $185 at expiration, you are obligated to buy 100 shares at $185 per share- but you still keep the $855. Should that happen, you can now shift gears and start selling covered calls. You can view NVDA covered call trades right here: 

As you can see, you get paid no matter what. And just like selling puts, you can continue selling covered calls until your own shares get called away. Then the process can begin once again by selling puts. 

Final thoughts

The wheel strategy isn’t a get-rich-quick scheme, but it can generate consistent, repeatable income when applied with discipline, especially for stocks you’re comfortable holding long term. Once you get the ball rolling, you’ll have to maintain discipline by monitoring expirations, managing assignments, and adjusting strikes or rolling options should you deem it necessary. Yes, it comes with risks, but it is safer than many other option strategies and takes advantage of highly volatile market conditions. Finally, if you’re still new to this strategy, consider trading in a paper account first so you can get a handle on entering, monitoring, and exiting your trades properly.