Kimbell Royalty Partners LP (KRP) Wheel Strategy

Running a KRP wheel strategy lets you generate consistent premium income on Kimbell Royalty Partners LP while setting your own entry and exit prices on the underlying. Kimbell Royalty Partners LP's wheel combines cash-secured puts and covered calls into a repeatable cycle: sell puts at strikes where you'd be happy to own KRP, and if assigned, sell calls at strikes where you'd be happy to sell. Use our scanner to find the best KRP 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 KRP, 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 KRP wheel from a losing one.

Kimbell Royalty Partners, LP, together with its subsidiaries, acquires and owns mineral and royalty interests in oil and natural gas properties in the United States. As of December 31, 2021, it owned mineral and royalty interests in approximately 11.4 million gross acres and overriding royalty interests in approximately 4.7 million gross acres. The company's mineral and royalty interests are located in 28 states and include ownership in approximately 122,000 gross wells, including approximately 46,000 wells in the Permian Basin. It serves as the general partner of the company. The company was founded in 2013 and is based in Fort Worth, Texas.

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 KRP wheel strategy by delta, premium yield, IV rank, and days to expiration, so you can deploy capital where the math works. Build your KRP wheel strategy on data, not gut feel — and let the options wheel do what it does best: pay you to wait.