WBD Warner Bros. Discovery

Warner Bros. Discovery (WBD) is a communication stock that shows up on a lot of wheel traders' watchlists — and for good reason. Communication stocks include legacy telecoms and newer media platforms. The telecoms tend to be slower-moving with decent dividends; the media names can swing on subscriber data and ad revenue trends.

Here's the playbook. You start by selling a cash-secured put on WBD at a strike where you'd genuinely want to own 100 shares. Most communication names trade at accessible price points, which makes them reasonable for accounts in the $25K-$50K range. 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.

Cord-cutting trends and streaming competition create narrative-driven moves in this space. Earnings matter a lot — subscriber and user metrics are the numbers to watch. Always check the earnings calendar before selling a new contract on WBD — getting assigned the day before an earnings print is a position-management headache you don't need.

If you're considering WBD 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.