AEP wheel: cash-secured put & covered-call yields
American Electric Power Company, Inc. · Utilities · $119.30 close on Sep 29, 2026
What the Sep 29, 2026 close says about AEP
At 21.8% implied volatility, the options market is pricing a one-standard-deviation move of about $9.81 (8.2%) in AEP by Nov 20, 2026, 52 days out.
Selling the $115 put (−0.30Δ) for $2.20 means assignment would leave a cost basis of $112.80, 5.4% below the $119.30 close.
The 80-day 0.30Δ put pays 1.4× the premium of the 52-day one for 1.5× the time — more premium per day on the 52-day contract ($0.042 vs $0.039).
At 0.30Δ on the Nov 20 expiry the put yields 1.91% on its strike and the call 1.33% on spot: puts pay 1.4× what calls do on AEP this session.
Moving down to the $110 put (−0.16Δ) buys 4.2% more room below spot and keeps 50% of the 0.30Δ premium.
Open interest in the stored window totals 8,059 contracts; the largest single line is the $130 call expiring Nov 20 with 2,681 (33.3% of the window).
By options volume AEP ranks #238 of 441 names in our universe.
The builder re-quotes every leg from the live chain when it opens; tracking is free to start.
Cash-secured puts on AEP
| Target | Strike | Δ | Last trade | Premium / contract | Cash secured | Period yield | Annualized | Breakeven | OI | Volume |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.30Δ | $115 | −0.30 | $2.20 Sep 29 | $220.00 | $11,500 | 1.91% | 13.4% | $112.80 | 305 | 31 |
| 0.20Δ | $110 | −0.16 | $1.10 Sep 29 | $110.00 | $11,000 | 1.00% | 7.0% | $108.90 | 172 | 13 |
Snapshot #310 · session 2026-09-29 · captured 22:00 UTC · 15-min delayed · yield = premium ÷ strike · annualized = yield × 365 ÷ 52
| Target | Strike | Δ | Last trade | Premium / contract | Cash secured | Period yield | Annualized | Breakeven | OI | Volume |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.30Δ | $115 | −0.32 | $3.10 Sep 29 | $310.00 | $11,500 | 2.70% | 12.3% | $111.90 | 378 | 2 |
| 0.20Δ | $110 | −0.19 | $1.70 Sep 29 | $170.00 | $11,000 | 1.55% | 7.1% | $108.30 | 318 | 16 |
Snapshot #310 · session 2026-09-29 · captured 22:00 UTC · 15-min delayed · yield = premium ÷ strike · annualized = yield × 365 ÷ 80
Covered calls on AEP
| Target | Strike | Δ | Last trade | Premium / contract | Yield on spot | Annualized | If called | If called, ann. | OI | Volume |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.30Δ | $125 | 0.28 | $1.59 Sep 29 | $159.00 | 1.33% | 9.4% | 6.11% | 42.9% | 703 | 39 |
| 0.20Δ | $130 | 0.15 | $0.60 Sep 29 | $60.00 | 0.50% | 3.5% | 9.47% | 66.5% | 2,681 | 28 |
Snapshot #310 · session 2026-09-29 · captured 22:00 UTC · 15-min delayed · yield = premium ÷ spot · if called = (premium + strike − spot) ÷ spot · annualized × 365 ÷ 52
| Target | Strike | Δ | Last trade | Premium / contract | Yield on spot | Annualized | If called | If called, ann. | OI | Volume |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.30Δ | $125 | 0.34 | $2.10 Sep 29 | $210.00 | 1.76% | 8.0% | 6.54% | 29.8% | 689 | 30 |
| 0.20Δ | $130 | 0.19 | $1.00 Sep 29 | $100.00 | 0.84% | 3.8% | 9.81% | 44.7% | 334 | 97 |
Snapshot #310 · session 2026-09-29 · captured 22:00 UTC · 15-min delayed · yield = premium ÷ spot · if called = (premium + strike − spot) ÷ spot · annualized × 365 ÷ 80
AEP volatility, dividends and liquidity
- Implied volatility (ATM, ≈30 days)
- 21.8%session 2026-09-29
- IV rank / IV percentile
- Unavailable1
- Next earnings
- Unavailable2
- Next ex-dividend
- None announcedchecked Sep 28, 2026
- Open interest, stored window
- 8,059 contractssession 2026-09-29
- Largest open-interest line
- $130 call · Nov 20 · 2,681
- Bid/ask spread
- Unavailable3
- Options liquidity rank
- #238 of 441 optionable names by options volume
How these numbers are made
One end-of-day snapshot per session from a 15-minute-delayed feed. A premium is a contract’s last trade, used only if it printed that session, sits above intrinsic value and is in order with its neighbours; deltas are the feed’s own. Expiries are the first at least 30 and 60 days out, and nothing under 30 days is annualized. Not investment advice. Full methodology.
- We are building our own daily implied-volatility history (2 of 252 sessions so far); IV rank and percentile need a full year of it.
- Our data provider does not license announced earnings dates, and we do not publish estimates.
- Our data feed carries last trades, not live bid/ask quotes, so we cannot show a spread.