DHR Danaher Corp.

Danaher Corp. (DHR) is a healthcare stock that shows up on a lot of wheel traders' watchlists — and for good reason. Healthcare stocks span everything from steady pharma giants to volatile biotech names. The wheel works well on the large-caps with predictable cash flows; for smaller biotechs, be ready for binary events around FDA decisions.

Here's the playbook. You start by selling a cash-secured put on DHR at a strike where you'd genuinely want to own 100 shares. Share prices in healthcare range widely; some blue-chip pharma names are quite accessible, while others sit well above $400. If the put expires worthless, you pocket the premium and sell another. If you get assigned, you take delivery of the shares and pivot to selling covered calls above your cost basis until the position is called away. That full cycle — put, assignment, call, called away — is the wheel.

Drug approvals, patent cliffs, and CMS policy changes can create outsized moves. If you sell through one of those catalysts, implied volatility will be high — but so is your assignment risk. Always check the earnings calendar before selling a new contract on DHR — getting assigned the day before an earnings print is a position-management headache you don't need.

If you're considering DHR for the wheel, run the numbers first. The wheel strategy calculator will model your full cycle return, the CSP calculator breaks down annualized yield by strike and expiration, and the covered call calculator helps you pick the right exit strike once you're holding shares. All free, no sign-up required.