What is the wheel score used in the OptionIncomeTools wheel screener?

The wheel score is a 0–100 composite that ranks an underlying for the wheel strategy by combining annualized yield, liquidity, delta quality, and implied-volatility regime; it is a screening heuristic, not a forecast.

Calculation type: Heuristic score Method version: 2.0 Effective date: 2026-07-16 Date reviewed: 2026-07-16

Formula

A weighted linear combination of four sub-scores (each normalized to 0–1), returned on a 0–100 scale:
  40% × yield (min(1, combinedYield / 1.5))
  25% × liquidity score (0–1)
  20% × delta quality (peaks at delta = 0.27; falls off linearly)
  15% × IV regime (penalty applied when IV > 80%)

Reference implementation: wheelScore() in worker/src/index.js. This page is generated from the canonical scoring registry — if the code diverges from these weights, the deployment lint (Preflight Gate 13) will fail the build.

Worked example

SOFI shows an annualized combined yield of ~45% (yieldNorm = 0.30), a liquidity score of 78 (liqNorm = 0.78), a short-put delta of 0.30 (deltaQ = max(0, 1 − |0.30 − 0.27| × 2) = 0.94), and IV of 55% (ivPenalty = 1.0 because IV < 80%). Composite: 0.40(0.30) + 0.25(0.78) + 0.20(0.94) + 0.15(1.0) = 0.65 × 100 = 65.

Common misinterpretation

Treating wheel score as a quality score or a prediction of profit. It is a relative ranking inside our screened universe under the current snapshot. A wheel score of 75 today may be 55 tomorrow if implied volatility falls or assignment risk rises.

Limitations

Does not include account-type fit (no naked options in IRA, etc.).
Does not adjust for upcoming earnings or ex-dividend dates — check those separately.
Normalization is relative to the Core 54 universe (v2026-07-16), not the entire US options market.

Tools that use this metric

Primary references

Methodology page

References cite the source institution where the underlying definition or rule is published. OptionIncomeTools does not redefine standardized options terms; it ranks and presents data using widely accepted definitions.

Related glossary entries

Browse the full glossary for related definitions.

Educational only — not investment advice. See the disclaimer and methodology. Material methodology corrections are logged at corrections.