Invesco DB Oil Fund (DBO) Wheel Strategy

Running a DBO wheel strategy lets you generate consistent premium income on Invesco DB Oil Fund while setting your own entry and exit prices on the underlying. Invesco DB Oil Fund's wheel combines cash-secured puts and covered calls into a repeatable cycle: sell puts at strikes where you'd be happy to own DBO, and if assigned, sell calls at strikes where you'd be happy to sell. Use our scanner to find the best DBO wheel strategy setups in real time.

The wheel works best on liquid, high-quality names with stable fundamentals and active options markets — exactly the profile many large-cap leaders fit. The mechanics are simple: sell a cash-secured put on DBO, collect premium, and either keep the premium if it expires worthless or take assignment at a discount to current price. Once assigned, sell covered calls against the shares to keep collecting premium until they're called away. Choosing the right strikes, expirations, and IV environment is what separates a profitable DBO wheel from a losing one.

The Invesco DB Oil (Fund) seeks to track changes, whether positive or negative, in the level of the DBIQ Optimum Yield Crude Oil Index Excess Return (DBIQ Opt Yield Crude Oil Index ER or Index) plus the interest income from the Fund's holdings of primarily US Treasury securities and money market income less the Fund's expenses. The Fund is designed for investors who want a cost-effective and convenient way to invest in commodity futures. The Index is a rules-based index composed of futures contracts on light sweet crude oil (WTI). You cannot invest directly in the Index. The Fund and the Index are rebalanced and reconstituted annually in November.This Fund is not suitable for all investors due to the speculative nature of an investment based upon the Fund's trading which takes place in very volatile markets.

The difference between a wheel that compounds and one that bleeds comes down to strike selection, IV timing, and discipline on assignment. Our scanner handles the heavy lifting: it ranks every leg of the DBO wheel strategy by delta, premium yield, IV rank, and days to expiration, so you can deploy capital where the math works. Build your DBO wheel strategy on data, not gut feel — and let the options wheel do what it does best: pay you to wait.