The PCP (put-call-put or “wheel”) Strategy with Solaris Energy
Combining covered call writing and selling cash-secured puts into one multi-tiered option-selling strategy is known as the Put-Call-Put (PCP) or “Wheel” strategy. In this article, a 68-day series of such trades will be analyzed, showing how a 160% annualized return was realized.
Graphic representation of the PCP (Wheel) strategy
- 1: Sell OTM cash-secured puts
- 2: If exercised, by shares at a discount
- 3: Sell covered calls on shares “put” to us
- 4: If exercised and shares are sold, use the cash to secured new put trades
Real-Life Example with Solaris Energy Infrastructure Inc. (NYSE: SEI): Initial put leg + rolling-up
- 1/20/2026: SEI trading at $55.77
- 1/20/2026: STO 2 x 2/20/2026 $42.50 puts at $1.16
- 1/20/2026: STO 2 x 2/20/2026 $37.50 puts at $0.58
- 2/13/2026: SEI trading at $59.50
- 2/13/2026: BTC 2 x 2/20/2026 $42.50 puts at $0.35
- 2/13/2026: STO 2 x 2/20/2026 $52.50 puts at $0.95 (rolled up)
- 2/13/2026: BTC 2 x 2/20/2026 $37.50 puts at $0.08
- 2/13/2026: STO 2 x 2/20/2026 $50.00 puts at $0.50 (rolled up)
Expiration Friday: 2/20/2026
- SEI closed at $49.24
- 4 contracts expiring ITM
- “Allowed exercise”
- History of earnings beats
- Held through 2/24 ER
PCP or Wheel Strategy with SEI: Call leg on 2/25/2026
- STO 4 x 3/20/2026 $60.00 calls at $3.51
- SEI trading at $55.22 (appreciated after the 2/24/2026 earnings release)
- Place a BTC/GTC limit order at $0.70 (20% guideline)
- 3/9/2026: Change BTC/GTC limit order to $0.35 (10% guideline)
- 3/20/2026: SEI closed at $61.81, and exercise and sale of the shares were “allowed”
- 3/23/2026: 400 shares of SEI sold at $60.00
Graphic representation of the 68-day trades
The PCP or Wheel Strategy: Realized results from 1/20/2026 – 3/20/2026
