Stellus Capital Investment Corp (SCM) Wheel Strategy

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

Stellus Capital Investment Corporation is a business development company specializing in investments in private middle-market companies. It invests through first lien, second lien, unitranche, and mezzanine debt financing, often with a corresponding equity investment. The fund prefers to invest in US and Canada. The fund seeks to invest in companies with an EBITDA between $5 million and $50 million.

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