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Urban Outfitters Inc (URBN) — wheel strategy suitability
Where URBN sits as an underlying for selling cash-secured puts and covered calls, and what its own price history says about the risk of being assigned into a falling stock. Snapshot of 3 October 2026.
Urban Outfitters Inc (URBN) scores 82 on the Wheel score, which puts it in the preferred band for selling cash-secured puts and covered calls.
The score is carried by its margin stability (83/100) and held back by valuation (52/100). Steady margins are exactly what you want under a short put: the earnings behind the stock do not swing much from quarter to quarter. It is not cheap, so assignment would leave you holding a fully priced stock.
It has weekly options, so no liquidity haircut is applied — weeklies let you roll on a shorter cycle and take theta more often.
Over the last 3.0 years it had 5 days with a fall of 10% or more (1.68 a year), a deepest drawdown of -28.5%, and a worst single session of -18.4%. That is worse than the median screened name (0.67 gap-downs a year, -44.9% typical worst drawdown).
Realised volatility runs about 48% annualised. That is high. More premium, and a materially higher chance of being assigned into a falling stock.
Ownership context: an activist 13D filing on the register (13D 6.8% '20). A 13D means someone has taken a stake with intent to influence the company. Read the recent news before selling puts here — that is the kind of situation that moves a stock on an announcement.
Entry timing currently reads extended: the stock has run. Covered calls fit that better than puts.
Score breakdown
| Wheel score | 82 | 0–100 suitability for options selling |
|---|---|---|
| Quality | 61 | ROIC, margins, leverage, accruals |
| Valuation | 52 | cheaper on fwd P/E, EV/EBITDA, FCF yield |
| Margin stability | 83 | steadier earnings score higher |
| Options listed | Weekly | weekly avoids the liquidity haircut |
| Accounting flags | 0 | −8 points each |
Realised tail risk
Computed from our own daily price history, 2023-10-04 to 2026-10-01 (749 sessions). The Wheel score is built from fundamentals, so these price-derived numbers are an independent check on it, not a restatement of it.
| Days falling 10%+ in one session | 5 | 1.68 a year |
|---|---|---|
| Deepest drawdown | -28.5% | peak to trough |
| Worst single session | -18.4% | |
| Realised volatility | 48% | annualised |
Fundamentals
| Revenue (ttm) | 6,165M USD |
|---|---|
| Revenue CAGR (3y) | 8.7% |
| Net margin | 7.5% |
| Return on equity | 16.5% |
| Share price | $78.77 |
| Days to earnings | 53 |
| Sector / industry | Consumer Cyclical · Apparel Retail |
Open the URBN options chain on Yahoo Finance to check live strikes and premium — this page deliberately carries no quotes, because a quote baked into a static page is stale before you read it.
Run the numbers on URBN
Pre-filled with the snapshot price of $78.77 and 30-day realised volatility; add the strike and premium from the live option chain.