U Unity Software

Unity Software (U) is a technology stock that shows up on a lot of wheel traders' watchlists — and for good reason. Tech names often carry higher implied volatility, which means fatter premiums on the puts and calls you sell. The trade-off is wider price swings — so your strike selection matters more than in a sleepy utility.

Here's the playbook. You start by selling a cash-secured put on U at a strike where you'd genuinely want to own 100 shares. Many tech names trade at a premium valuation, so the capital commitment per contract can be significant. 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.

Technology stocks tend to move on earnings, product cycles, and macro sentiment around growth. That extra volatility is exactly what funds the wheel, but it also means you should be genuinely comfortable holding 100 shares through a drawdown. Always check the earnings calendar before selling a new contract on U — getting assigned the day before an earnings print is a position-management headache you don't need.

If you're considering U 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.