Best Wheel Stocks Under $10 For The Wheel Strategy

The wheel strategy offers a reliable way to earn steady income by selling puts and covered calls, perfect for retail investors with smaller accounts. 

By focusing on low-priced stocks, traders can minimize their initial investment while leveraging the potential for steady returns.

In this article, we’ll explore seven best wheel stocks under $10 that you can use for this unique strategy, each with strong business models or income potential and active options chains. 

Later, we’ll walk through exactly how to set up the wheel, tools you can use, and the risks to watch, ensuring you’re ready to start with confidence. 

TL;DR: Best Wheel Stocks Under $10

The wheel strategy is a powerful way to earn consistent income by selling options. For small accounts, stocks under $10 offer a low-barrier way to start. 

Here’s a quick overview of the top picks featured in this article:

• Ford (F): Legacy automaker transitioning to EVs with strong options liquidity.
• Goodyear (GT): Leading tire manufacturer with cyclical premium spikes.
• Nokia (NOK): Telecom infrastructure giant benefitting from global 5G expansion.
• iQIYI (IQ): Chinese streaming platform offering rich premiums amid volatility.
• Clarivate (CLVT): Data analytics firm with steady premiums and recurring revenues.
• OPKO Health (OPK): Biotech play with high volatility and significant premium potential.
• Plug Power (PLUG): Hydrogen fuel cell innovator with deep options activity and high volatility.

What Is the Wheel Strategy in Options Trading?

The wheel strategy is a popular options income method that involves selling cash-secured puts to generate income. If assigned, you then sell covered calls on the shares you now own. Rinse and repeat.

This approach appeals to both new and seasoned investors because it lets you get paid to potentially buy stocks you already want to own. 

If the stock doesn’t dip to your strike price, you keep the premium and try again. If it does, you simply switch gears and start selling calls until the stock is called away.

Where this really shines is with affordable sub-$10 picks. You can deploy this strategy even with a smaller account and still earn meaningful premium income. 

The key, however, is choosing the right stocks, ones with solid fundamentals, decent liquidity, and healthy options volume.

Selling Cash-secured Put Options

• Selection: Choose a stock you are willing to own. Ideally, this stock should have stable price movements and be undervalued or have potential for growth.
• Selling Puts: Sell a put option at a strike price where you are comfortable buying the stock. Collect the premium as income.
• Assignment: If the stock’s price falls below the strike price, you are obligated to purchase the stock at the strike price.

Selling Covered Calls

• Ownership: After assignment, you now own the stock.

• Selling Calls: Sell a covered call option at a higher strike price. This allows you to collect another premium.

• Exercise: If the stock’s price rises above the call option’s strike price, your stock may be called away at the higher strike price, completing the wheel and locking in profits.

Benefits of the Wheel Strategy

• Income Generation: Collect premiums from both selling puts and covered calls.

• Risk Management: Only invest in stocks you are willing to own, minimizing the risk of significant losses.

• Flexibility: Adjust the strategy based on market conditions and stock performance.

How We Picked These Wheel-Friendly Stocks

Selection Filters:

To create this list, we applied the following strict selection filters:

• Price under $10: This ensures accessibility for retail traders running the wheel with smaller accounts.
• Trades on NYSE or Nasdaq: We avoid OTC stocks due to liquidity and regulatory concerns.
• High daily volume (≥1M shares/day): Ensures easy trade execution and better fill prices.
• Liquid options chain: Active open interest and tight bid-ask spreads make managing wheel positions easier.
• Implied volatility ≥30%: Higher IV generally means larger premiums for puts and calls.
• Solid underlying business: We eliminated speculative penny stocks with weak financials or poor business models.

Why It Matters:

By using these filters, we can identify stocks that offer both good return potential and manageable risk:

• High implied volatility gives you richer premiums to collect, increasing your income.
• Solid fundamentals reduce the chances of being stuck with a failing stock if you’re assigned.

These criteria help ensure you’re running the wheel strategy on reliable, option-friendly names rather than speculative traps.

7 Best Wheel Stocks Under $10 to Buy

Ford Motor Company (NYSE: F)

Overview:

Ford remains one of the most recognizable names in American manufacturing. 

While it may seem like an old-school pick, Ford has strategically positioned itself for the electric vehicle (EV) future. Its robust lineup of combustion and EV offerings gives it a diversified footprint that appeals to a wide customer base. 

Ford’s stock trades under $10 as of mid-2025, making it one of the best value plays for options traders looking to wheel a reliable, high-volume stock.

Growth Catalysts:

Ford’s commitment to electrification is a major driver for long-term growth. 

Its F-150 Lightning has seen strong pre-orders, and the company is investing billions into EV battery manufacturing. 

Moreover, Ford continues to generate substantial revenue from its internal combustion engine business, helping to fund its transition.

The options liquidity on Ford is excellent. This makes it easy to enter and exit positions while collecting decent premiums. 

Its implied volatility tends to spike during earnings seasons and around EV-related announcements, which creates short-term opportunities to boost yields on sold puts and calls.

Risks:

While Ford has strong brand recognition, it’s not immune to macroeconomic pressures. 

Auto manufacturers often suffer during economic downturns, and interest rate fluctuations can dampen consumer appetite for car loans. 

There’s also fierce competition in the EV space, with Tesla, Rivian, and international players all vying for market share.

Conclusion:

Ford is one of the few legacy automakers adapting successfully to modern trends. 

Its sub-$10 price, combined with robust options activity and solid fundamentals, make it an ideal candidate for the wheel strategy in 2025. 

If you’re looking for a blue-chip name with a low cost of entry, this is it.

Goodyear Tire & Rubber Company (NASDAQ: GT)

Overview:

Goodyear is a global leader in tire manufacturing and one of the most liquid sub-$10 stocks available for U.S. investors. 

Known for its expansive distribution network and deep ties to the automotive industry, Goodyear has a consistent demand base that supports recurring revenue. 

This consistency also translates into dependable options activity, which is crucial when running the wheel.

Growth Catalysts:

The shift toward EVs and smart vehicles has actually helped Goodyear position itself as more than just a tire maker. 

Its innovation in tire sensors and autonomous vehicle integration opens new revenue channels. Plus, its acquisition of Cooper Tire continues to offer cost synergies and expansion into emerging markets.

Goodyear also benefits from high seasonal volatility, especially during the winter and summer tire changeover periods. 

This translates into elevated implied volatility, which makes the premiums more attractive.

Risks:

Goodyear’s primary risks lie in raw material costs and economic slowdowns. 

Higher input costs, such as rubber and oil-based materials, can squeeze margins. Also, as a cyclical company, any drop in global vehicle production could affect demand.

Conclusion:

GT offers the best of both worlds: it’s a well-established brand and a frequent flyer on high-volume options lists. 

For wheel traders, this means easy fills, consistent premiums, and a fundamentally sound business model. 

As long as you’re aware of the cyclical nature of the industry, Goodyear is a solid pick.

Nokia Oyj (NYSE: NOK) 

Overview:

Nokia, once synonymous with mobile phones, has successfully transformed itself into a networking infrastructure powerhouse. 

The Finnish company now focuses on 5G networks, telecom equipment, and digital services. 

Listed on the NYSE, Nokia’s sub-$10 price and broad institutional ownership make it a prime candidate for income strategies like the wheel.

Growth Catalysts:

Nokia has become a pivotal player in the global 5G rollout. 

Its contracts with major telecom providers across Europe, Asia, and North America serve as a testament to its revitalized business model. 

With governments and private sectors continuing to invest in next-gen connectivity, Nokia stands to benefit long-term.

Its options market is highly active, with sufficient volume and open interest across multiple expiration cycles. 

This allows for flexibility when selecting strike prices or rolling positions.

Risks:

Nokia operates in a highly competitive environment. Giants like Ericsson, Huawei, and newer entrants all fight for telecom contracts. 

Furthermore, geopolitical tensions, especially those involving China and Europe, can disrupt supply chains or contract approvals.

Conclusion:

For investors seeking international exposure without the risks of a foreign exchange listing, Nokia is a safe bet. 

It’s priced affordably, actively traded, and has a future-facing business model. As a wheel candidate, it checks all the right boxes.

iQIYI, Inc. (NASDAQ: IQ)

Overview:

iQIYI is often referred to as the “Netflix of China,” offering a broad array of original content, streaming services, and online video platforms. 

Although headquartered in Beijing, it is listed on the Nasdaq, making it accessible to U.S. investors. 

With a share price below $10, iQIYI has become an intriguing candidate for option sellers looking to leverage volatility and audience growth.

Growth Catalysts:

iQIYI is capitalizing on the rapid digitization of entertainment consumption in Asia. 

Its investments in AI-driven content recommendations and original programming have helped it retain and grow its subscriber base. 

The company is also focusing on monetizing its platform through ads and premium subscriptions.

The stock frequently experiences news-driven price swings, leading to higher-than-average implied volatility. 

For traders running the wheel, this presents an opportunity to earn substantial premiums both on the put and call sides.

Risks:

Despite its strong platform, iQIYI is not without risk. Regulatory scrutiny in China, fluctuations in advertising revenue, and rising competition from both domestic and international platforms could hinder growth. 

Additionally, foreign investor sentiment toward Chinese companies can shift quickly, impacting stock performance.

Conclusion:

While iQIYI carries a bit more geopolitical risk than the others on this list, it also offers some of the juiciest premiums in the sub-$10 universe. 

If you’re comfortable with the added volatility, IQ could become a highly profitable part of your wheel strategy.

Clarivate Plc (NYSE: CLVT)

Overview:

Clarivate offers analytics and insights for scientific research, intellectual property, and academia. 

Though not a household name, it plays a vital role in how businesses and institutions track innovation. 

With its enterprise clients and data-heavy services, Clarivate is a sleeper pick for income-focused strategies.

Growth Catalysts:

The company’s acquisition strategy has rapidly expanded its market presence. Its SaaS-style offerings generate recurring revenue, which supports valuation stability. 

As more companies focus on data and IP, Clarivate stands to benefit from growing demand.

From an options standpoint, CLVT has a healthy chain for a sub-$10 stock. Volatility isn’t extreme, but it’s consistent, offering a reliable stream of premium income.

Risks:

Clarivate is more vulnerable to interest rate and valuation pressures, especially as a growth-focused tech-adjacent firm. Integration risks from acquisitions and customer churn could also be hurdles.

Conclusion:

Clarivate is a lesser-known but quality candidate for running the wheel. 

It brings balance to a wheel strategy portfolio by offering stability with moderate premium potential. 

For traders wanting something outside the usual suspects, CLVT fits the bill.

OPKO Health, Inc. (NASDAQ: OPK)

Overview:

OPKO Health is a diversified healthcare company involved in diagnostics, pharmaceuticals, and biotechnology. 

It’s known for its subsidiary BioReference Labs and investments in growth-stage biotech platforms. Trading well under $10, OPKO is a frequent pick among traders who look for volatility-driven premiums.

Growth Catalysts:

OPKO has made several strategic partnerships and is actively expanding its diagnostic footprint. 

Its focus on innovation in kidney disease, hormone therapy, and diagnostics could yield significant breakthroughs.

The stock is volatile, which may be off-putting to some, but this very volatility results in rich options premiums. 

For wheel strategy enthusiasts, that means more income per contract.

Risks:

As a biotech play, OPKO carries higher risk. Regulatory setbacks, R&D failures, and revenue concentration in certain areas can create big swings in valuation. 

Moreover, it’s not as widely followed as other names, so volume can occasionally be thin.

Conclusion:

If you’re looking for a high-beta stock to add some punch to your wheel strategy, OPKO is worth considering. 

It won’t suit conservative traders, but for those who understand the healthcare space, it can be a lucrative wheel candidate.

Plug Power Inc. (PLUG)

Overview:

Plug Power is a pioneer in hydrogen fuel cell technology, serving industrial clients in material handling, backup power, and mobility sectors. 

With a long history of innovation and a growing network of commercial partnerships, Plug has positioned itself as a foundational player in the emerging hydrogen economy. 

Despite its share price residing in the low single digits, PLUG offers one of the most actively traded options chains in the market, with consistently elevated implied volatility, making it an ideal candidate for wheel-based income generation.

Growth Catalysts:

The global push toward decarbonization has put hydrogen energy in the spotlight. 

Plug Power stands to benefit from both public and private sector investment in clean fuel technologies. 

The company has secured multiple long-term deals with major corporations, including logistics and automotive giants, to deploy fuel cell systems across warehouses and vehicle fleets.

What sets Plug apart is its vertically integrated approach: from green hydrogen production to storage, distribution, and fuel cell deployment. 

This enables the company to capture value across the hydrogen supply chain. 

As government incentives and infrastructure funding continue to flow into clean energy, Plug’s growth narrative remains intact.

The elevated volatility around Plug, driven by innovation cycles, earnings surprises, and shifting investor sentiment, translates into rich option premiums. 

This makes it particularly lucrative for those using the wheel strategy, especially when managed conservatively with proper risk buffers.

Risks:

Plug Power remains a high-risk, high-reward play. The company has yet to achieve consistent profitability and continues to burn cash to fund expansion. 

Its success is heavily tied to hydrogen adoption rates and policy support. Delays in regulatory rollout or funding could significantly impact growth.

Additionally, investor sentiment can swing rapidly in the clean energy space, leading to large price fluctuations. 

This volatility, while beneficial for premiums, can challenge less-experienced traders who aren’t prepared for quick drawdowns.

Conclusion:

PLUG is a quintessential speculative growth stock with powerful upside potential and premium-rich option chains. 

For traders comfortable with heightened volatility and willing to manage risk actively, Plug Power offers a unique opportunity to wheel a stock on the cutting edge of clean energy. 

It’s not a conservative play, but in the right portfolio, it can be a strong contributor to income and innovation exposure alike.

Are Wheel Stocks Under $10 a Good Investment?

Investing in wheel stocks under $10 can be a viable and strategic approach for generating passive income through options trading. Here’s a comprehensive look at why these stocks can be a good fit for the wheel strategy, and what considerations investors should keep in mind.

Benefits of Wheel Stocks Under $10

Accessibility

One of the primary advantages of choosing stocks under $10 for the wheel strategy is the lower capital requirement. Buying 100 shares of a stock priced at $10 or less requires $1,000 or less, making it more accessible for individual investors and those with smaller accounts.

Potential for Growth

Many low-priced stocks belong to companies that are considered growth stocks. These companies might be in emerging industries or experiencing a turnaround. As the stock’s price increases, the premiums collected from selling options can also rise, enhancing overall returns.

Regular Income Generation

The wheel strategy generates regular income through the consistent selling of put and call options. Stocks under $10 can be ideal candidates as they often have high trading volumes and liquidity, which helps in smoothly executing options trades and capturing premiums.

Practical Example of Wheel Stocks Under $10

Let’s consider a hypothetical stock, XYZ Corp, trading at $8 per share:

Phase 1: Selling Put Options

• Selection: Choose XYZ Corp, which is currently trading at $8, and has high liquidity and trading volume.

• Selling Puts: Sell a put option with a strike price of $7.50, collecting a premium of $0.50 per share.

• Assignment: If the stock price drops below $7.50, you buy 100 shares at $7.50, costing $750.

Phase 2: Selling Covered Calls

• Ownership: You now own 100 shares of XYZ Corp.

• Selling Calls: Sell a covered call option with a strike price of $8.50, collecting another premium of $0.50 per share.

• Exercise: If the stock price rises above $8.50, your shares may be called away, selling them at $8.50 and locking in a profit plus the collected premiums.

How to Run the Wheel With Sub‑$10 Stocks

Step-by-Step Guide

• Start with puts: Begin by selling a cash-secured put on a stock trading under $10 that meets your screening criteria. Choose a strike price at which you’d be happy owning the stock. If the option expires worthless, you keep the premium and repeat.
• Manage assignment: If the stock closes below your strike and you’re assigned, you’ll now own 100 shares. Don’t panic—this is part of the plan. Shift to the next phase of the wheel: selling a covered call.
• Adjust covered call strikes: Sell a call at a strike price slightly above your cost basis. This creates a chance to profit from the stock rising while collecting even more premium. Roll or adjust as needed if the stock moves quickly.

Tips for Small Accounts

• Use cash-secured puts only: Avoid margin. Stick with fully backed trades where you hold enough cash to buy 100 shares if assigned. This keeps your downside controlled.
• Don’t chase illiquid stocks: Only wheel names with tight bid-ask spreads and active options chains. Illiquid options can erode returns and make exits harder.

Tools to Use

• Tastytrade: Great for screening high-IV stocks and visualizing premium returns.
• Thinkorswim (TOS): Offers advanced charting and trade analysis tools to plan wheel cycles.
• OptionStrat: Helps visualize max profit/loss and simulate different strike scenarios across time.

Risks to Watch For

Running the wheel strategy on sub-$10 stocks can be rewarding, but it’s not without potential pitfalls. Understanding these risks upfront can help you make smarter decisions and protect your capital.

Assignment Risk

When you sell a put, there’s always a chance you’ll be assigned and have to purchase the stock. 

If that stock quickly drops after assignment, you could face a short-term unrealized loss. 

With sub-$10 stocks, even small dollar moves can mean big percentage swings. 

To manage this, always choose stocks you’d be comfortable owning for the long term, and consider staggering entry points rather than going all-in at once.

Volatility Risk

High implied volatility (IV) is often what makes the wheel attractive—it inflates premiums. But it can cut both ways. 

A stock with IV of 50% might offer juicy premiums, but it can also swing wildly, leading to unexpected assignments or underwater positions. 

Earnings reports, geopolitical news, or sector shocks can all drive sudden price drops. 

To mitigate this, avoid holding through earnings unless it’s part of your plan, and consider using delta or probability of profit (POP) as guardrails.

Liquidity Risk

Not all options markets are created equal. Some sub-$10 stocks have wide bid-ask spreads or limited open interest, which can make entering or exiting positions expensive and inefficient. 

This can shrink your real returns and make it harder to manage trades. 

To avoid this, look for stocks with tight spreads (pennies, not quarters) and consistent daily volume. Platforms like Tastytrade or Thinkorswim let you screen for this easily.

Cycle Risk

The wheel strategy depends on repeatability. You want to cycle from selling puts to calls and back again. 

But sometimes a stock gets stuck in a range or dives and stays there. This can trap your capital and reduce your yield. 

It can also leave you writing calls at lower strikes just to collect a little premium. 

Diversifying across several tickers can help, as can keeping some cash on hand to rotate into better setups.

Business Risk

Fundamentals still matter. If the company you’re wheeling runs into financial trouble, faces lawsuits, or misses key product deadlines, its share price can tank, and so can your income plan. 

Avoid companies with erratic earnings, high debt loads, or unclear business models. 

Doing a basic review of revenue trends, net income, and sector health can go a long way in protecting your downside.

Final Thoughts

Running the wheel strategy on stocks under $10 can be a game changer for retail investors, especially those with limited capital.

The key lies in stock selection. Because, it is essential to choose stocks with high liquidity, manage risks effectively, and ensure the companies have strong fundamentals.

Each of the seven picks in this article brings something different to the table, whether it’s stability, volatility, or innovation.

If you’re strategic with your entries, manage risk, and reinvest premiums wisely, this strategy can serve as a solid monthly income generator. 

Always do your own due diligence, use paper trading to practice, and remember: the best options trader isn’t the one who makes the most trades, it’s the one who makes the best trades.

Wheel Strategy FAQs

Is the Wheel a Good Option Strategy?

The wheel options strategy could be a good fit for investors that feel comfortable trading complex options strategies. Option contracts are a complex and high-risk investment vehicle. Therefore, it could be a good idea to test out the strategy in a trading simulator prior to risking real capital.

Is the Wheel Strategy Better Than Buy-and-Hold?

The wheel strategy could be a better alternative than the buy-and-hold strategy since it could help minimize the downside risk while reducing the cost basis needed to earn large returns. However, the strategy does come with high risks.

Is the Wheel Strategy Suitable for Cheap Stocks?

Yes, the wheel strategy can be suitable for low-priced stocks. This options strategy involves selling put options on stocks that you wouldn’t mind owning, and if you are assigned the stock, selling covered call options on the shares you own.

Low-priced stocks, often those trading under $10, require less capital to purchase 100 shares, making the wheel strategy more accessible for investors with smaller accounts. However, it’s important to select stocks with high liquidity and stable fundamentals to minimize risks.

How Does the Wheel Strategy Generate Income?

The wheel strategy generates income through the premiums received from selling put and call options. When you sell a put option, you collect a premium upfront. If the stock price stays above the strike price, you keep the premium as profit.

If you are assigned the stock, you then sell covered call options on the shares you own, collecting additional premiums. This cycle can continue, providing regular income as long as the stock remains within a relatively stable price range.

How Do You Choose Stocks for the Wheel Strategy?

Choosing the right stocks for the wheel strategy involves looking for quality companies with stable stock prices, high liquidity, and strong fundamentals. Stocks with high trading volumes are preferred as they allow for easy entry and exit of positions.

Additionally, look for stocks with good free cash flow and growth potential. It’s also important to consider the company’s position in the broader market and its performance in different sectors.

Conduct thorough research and analyze the stock’s historical performance, volatility, and financial health before making an investment decision.

What Is the Difference Between the Wheel Strategy and Buy-and-Hold Investing?

The wheel strategy involves actively trading options to generate income, whereas buy-and-hold investing involves purchasing stocks and holding them for a long period, regardless of short-term market fluctuations.

The wheel strategy can provide regular income through premiums collected from selling options, potentially reducing the cost basis of owning the stock. However, it requires more active management and a deeper understanding of options trading.

In contrast, buy-and-hold investing focuses on long-term growth and the potential for capital appreciation over time, with less-frequent trading.

Can the Wheel Strategy Be Used in Different Market Conditions?

Yes, the wheel strategy can be adapted to different market conditions. In a stable market, the strategy can generate consistent income from premiums. In a volatile market, you may need to adjust your strike prices and expiration dates to account for increased price fluctuations.

It’s important to stay informed about market trends and economic indicators that could impact your chosen stocks. Effective risk management and flexibility in adjusting your strategy can help navigate various market conditions successfully.

How Do Implied Volatility and Liquidity Impact the Wheel Strategy?

Implied volatility (IV) measures the market’s expectation of future price movements in a stock. Higher IV generally means higher premiums for selling options, but it also indicates greater potential price swings, which can increase risk.

Lower IV suggests more stable prices, which can be advantageous for the wheel strategy. Liquidity, on the other hand, ensures that there are enough buyers and sellers in the market to easily enter and exit positions.

Stocks with high liquidity typically have tighter bid-ask spreads, making them more cost-effective for trading options. Both IV and liquidity are crucial factors to consider when selecting stocks for the wheel strategy.