The PCP (Put-Call-Put) or Wheel Strategy is a multi-tiered option-selling strategy that combines selling cash-secured puts and covered call writing. In the BCI methodology, we (almost) always use out-of-the-money (OTM) put strikes, agreeing to buy shares at a lower price than current market value. If and when those shares are “put” to us, what is the moneyness of the call strikes (in-the-money, at-the-money or OTM) that should be used in the next leg of PCP? In this article, a real-life example with Intel Corp. (Nasdaq: INTC) will be analyzed to demonstrate the available, reasonable choices.
Graphic representation of the PCP or Wheel Strategy
- Start by selling an OTM cash-secured put
- If exercise does not occur, continue selling OTM puts
- If exercise does occur, shares are purchased at a discounted price
- OTM calls can be sold for a traditional (aggressive) approach
- ITM calls can be sold to be more defensive
PCP or Wheel Strategy with INTC with Weekly & Monthly Options
- 12/8/2025: INTC trading at $41.94
- 12/8/2025: STO 4 x $40.00 12/12/2025 put at $1.19 (weekly)
- 12/12/2025: INTC closed at $39.51, and 400 shares put to us at $40.00 ($38.81 BE)
- 12/15/2025: INTC opens at $38.32
- 12/15/2025: STO 2 x 1/16/2026 $38.00 ITM calls at $3.05 (defensive trade)
- 12/15/2025: STO 2 x1/16/2026 $42.00 calls at $0.80 (more aggressive trade)
Put Calculations Trade Entries with the BCI Trade Management Calculator: Closed the week at $39.51 (from $41.94)
The 5-day unrealized return (shares not sold) at contract expiration is $280.00 or 1.80% (yellow cells on bottom right)
Covered call monthly initial traditional & defensive trades
- The ITM $38.00 call has an initial 33-day return of 5.89%, 65.20% annualized (brown cells), with 2.09% protection to breakeven (BE)- purple cell
- The OTM $42.00 call has an initial 33-day return of 2.06%, 22.80% annualized (pink cells), with 8.22% upside potential- blue cell
Current PCP or Wheel trade status
Discussion
In our BCI methodology, when using the PCP or Wheel Strategy, OTM cash-secured puts initiate our trades. If exercised, ITM calls are used to craft defensive trades and OTM calls are implemented when seeking traditional or more aggressive trades.
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Your generous testimonials
Over the years, the BCI community has been incredibly gracious by sending our BCI team email testimonials sharing stories as to what our educational content has meant to their families. Moving forward, we have decided to publish several of these testimonials in our blog articles. We will never use a last name unless given permission:
Recent Quasar Market interview:
1. BCI Educational Webinar #10: The Put-Call-Put (PCP) or “Wheel Strategy”
Thursday May 14, 2026, at 8 PM ET
Using both covered call writing & cash-secured puts in a multi-tiered option selling strategy. A 68-day real-life example taken from one of Alan’s portfolios will be analyzed.
BONUS: Barry will share a real-life credit spread trade using our BCI Conservative Credit Spread Management System.
Discount coupons and a live Q&A session will follow the presentation.
Click here for more information and to register (scroll down).
2. Mad Hedge Investor Summit
June 3, 2026
12 PM ET – 1 PM ET
Details & registration link to follow.to follow.
3. American Association of Individual Investors: NYC Chapter
June 10, 2026, at 6 PM – 8 PM ET
More information to come.
4. MoneyShow Masters Symposium Las Vegas
July 20 – 22, 2026
Caesars Palace Hotel
Las Vegas
Details to follow.
5. Toronto Money Show
September 24 – 25, 2026
MaRS Center, Toronto Canada
6. Orlando Money Show
October 5 – 7, 2026
Hilton Orlando Lake Buena Vista
Details to follow.
Premium Members,
This week’s Weekly Stock Screen and Watch List has been uploaded to The Blue Collar Investor Premium Member site and is available for download in the “Reports” section. Look for the report dated 04/24/26.
Be sure to check out the latest BCI Training Videos and “Ask Alan” segments. You can view them on The Blue Collar YouTube Channel. For your convenience, the link to the BCI YouTube Channel is:
https://www.youtube.com/user/BlueCollarInvestor
Barry and The Blue Collar Investor Team
Premium Members:
1. This week’s ETF Report has been uploaded to your member site. Login to the member site and scroll down on the left side to access the report.
ETF Report Video Link:
Explanation of the report format:
https://youtu.be/addf7Y54ixwput
2. I’ve attached to premium member emails 2, 2-contract, 19-day covered call trades, 2 OTM & 2 ITM using VIST as the underlying stock. I executed these trades on 4/27/2016, for the 5/15/2026 expirations.
2 contracts were defensive, the other 2 aggressive. Significant initial returns, upside potential (OTM strike) and downside protection (ITM strike) were generated at the onset of the trades. This is an example of strike laddering I have been favoring. VIST closed at $74.37 today, up $2.68 from trade entry. The current price is well above the ITM strike and approaching the OTM strike. As always, I remain prepared to execute exit strategies, if those opportunities arise. So far, so good with these trades.
3. Our loyalty pledge to you: Premium members will NEVER experience a rate hike as long as premium member subscriptions remains active … NEVER.
4. New Quasar Markets interview:
https://www.youtube.com/watch?v=vwTNwiM1xb0
5. Register now for our free BCI webinar on the PCP (Wheel) Strategy on May 14, 2026 (via Zoom):
https://www.thebluecollarinvestor.com/event/bci-educational-webinar-10/
6. Replacement information for this weekend’s stock screen & watch list (***check member email box).
Wishing you the best results,
Alan & the BCI team