TXO Partners LP (TXO) Wheel Strategy

Running a TXO wheel strategy lets you generate consistent premium income on TXO Partners LP while setting your own entry and exit prices on the underlying. TXO 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 TXO, and if assigned, sell calls at strikes where you'd be happy to sell. Use our scanner to find the best TXO 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 TXO, 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 TXO wheel from a losing one.

TXO Energy Partners, L.P. engages in the acquisition, development, optimization, and exploitation of conventional oil, natural gas, and natural gas liquid reserves in North America. As of July 31, 2022, it had working interest in the 850,009 gross acres located in the United States primarily in the San Juan Basin of New Mexico and Colorado, and the Permian Basin of West Texas and New Mexico. The company was founded in 2012 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 TXO wheel strategy by delta, premium yield, IV rank, and days to expiration, so you can deploy capital where the math works. Build your TXO wheel strategy on data, not gut feel — and let the options wheel do what it does best: pay you to wait.