Wheel strategy options reddit. Domm's safe wheel strategy? Youtube Link He applies the collar strategy but with two additional puts. This has helped me generate a continous passive income by selling weekly options on nifty, with minimum effort and stress (as I work a full time corporate job). This strategy utilizes selling options to collect weekly premiums while keeping a very low risk profile. Please let We would like to show you a description here but the site won’t allow us. Now everytime I collect premium, it reduce my cost basis, also if I get assigned stocks multiple times the collected premium plus covered calls premium reduce the cost The wheel is an income strategy, it’s not intended to beat buy and hold. It's not as simple as it looks. It also gives you the possibility to use your gains to adjust the cost 23 votes, 37 comments. The wheel is a great strategy for generating semi- passive income with a lower risk than many other strategies. As the title says, I’m looking for your top ETF’s to wheel, and of course why. I have $30,000 to trade with. Hello all, Trying to see if you guys have a good journal for option selling and in general wheel strategy. What are your top 5 stocks to wheel? What DTE do you normally pick? Should I stick to the 45/21 plan? Probably best to ask an accountant but just in case anyone has an answer to this, what are the tax implications? Hey thetagang, I've been browsing this and other investing subreddits a while now and I've seen the wheel strategy pop up more and more in recent times. I am going to start with CSP and currently finalising my strategy for it. Nov 14, 2023 路 Options trading can be a daunting world for beginners and seasoned investors alike. take an "under the hood" dive that looks into the strategies that experienced the greatest (5D hold-till-expiration) and least (50D early mgmt) total return learn how the wheel strat is materially influenced by timing luck Hello r/thetagang I spent the better part of this week changing the option tracker sheet from twoinvesting. 0DTE options have pretty juicy premiums so heres my idea 馃う "New to options" + "more consistent" <> 0 DTE 0 DTE strats are advanced strats for experienced traders. Wheel is primary a theta positive and Vega negative strategy, with some benefits from positive delta. Once you've been assigned on a put and you start the covered call sale part of the wheel, do you guys typically sell covered calls at the strike price you were assigned How much paperwork is involved for tax reporting when doing the wheel strategy? Let's say I sell 2 puts and 2 calls a month and just let them get exercised or expire. For example doing puts and never being assigned as you A place for options traders to share ideas, information, and wisdom specifically about selling theta decay using the wheel strategy. The strategy: Sell OTM puts until I get assigned then sell calls on assigned shares until called away. For those who are delving into the world of options, you may have heard about a strategy called the Options Wheel. (Which I feel is not likely any time soon) After reading about option trading strategies I have realized that option wheel is a better strategy for longer term. I have wherewithal to put $10000 in my live account which makes me ineligible for expensive stocks which are over $100. 1. Others point to the wheel is useful up to the point of avoiding assignment (either take the loss, go delta neutral, or roll out for credit). As far as stocks I regularly wheel, RKT is really the only one right now as their range is relatively predictable. … You need to properly understand options and the greeks if you want to do this strategy. Questions about the Wheel Strategy - How many days out and ITM option? I've been a stock market investor (long term buy and hold) for about 10 years but just started wheeling 2 months agoI've recently gotten assigned on a couple stocks after selling puts, so I'm working through my CC strategy. Not recommended for new traders. But there are lots of other good stocks, and I'm wondering how many products in total are on your Can-Wheel list? People sometimes use the wheel to refer to anytime they are selling calls or puts, but it is a specific strategy with a goal of eventually getting assigned. How to CONSISTENTLY Outperform the S&P500 using Theta Gang Strategy. This has a 32% of getting put into the stock which seems to be the range that is recommended. Hi All, I have a question regarding SPY wheel strategy. In essence, to buy a share that should be selling for $100. If it skyrockets, your limited on the upside. If you want to use the "Wheel" strategy on TLT: A 94/92 put spread gives you around 7% return with a break even price of 93. My answer as a full-time wheel trader is the same each time this is asked over and over every week . The Wheel Screener's interactive and powerful wheel options strategy calculator. 14. 40 a share. I summarized my thinking here. Here are the steps: I'm new to the Wheel strategy but have been digging in and speaking with friends who trade options amd they suggested the Wheel strategy as a relatively low risk strategy to get extra income from a portfolio. I started this on 3 different stocks. A person good at timing or stock picking would likely be successful with almost any strategy. com gives you the tools needed to find the best covered calls & cash-secured puts with minimal effort. Clearly I've kept things pretty surface level with my options trading account, since I've done nothing beyond CSP and CCs Reply reply more replyMore repliesMore replies DrSeuss1020 • Reply reply Machiavelli127 • We would like to show you a description here but the site won’t allow us. 121 votes, 178 comments. The Wheel Spreadsheet You can find it here. I have realized over the last couple years with this and watching the big cap tech stocks last year that you need to be careful when you sell options on stocks. My wheel portfolio is sitting at abt 15k and id make abt 1k off CSP on CHWY with a breakeven of $15. But what if there was a simple, powerful strategy for generating consistent income and minimizing risk? Introducing the Wheel Strategy, a systematic approach to options trading that offers precisely that. Dec 5, 2020 路 Not long ago this blog featured different trading strategies that utilize the Theta Gang mindset of selling options for premium. One reason I dislike a straight forward wheel is that if the underlying drops a decent amount, you aren't really able to get preimum. But they all still use the same fundamental strategy from paragraph 1. Its very interesting to run this strategy on BTC because the premiums are almost always sky-high. The capital allocation is inefficient. 00 a share for only (say) $50. 1M subscribers in the options community. 5 put would not be a vertical spread with a covered call as they will work independently. Learn how to sell options, collect premiums, and build passive income with smart stock choices. You need to be good with holding whatever stocks you trade for a time if needed, maybe even months. I think one of the common themes that I see when it comes to finding stocks for executing the Wheel options trading strategy is “I want to own the stock” or "I don't mind owning the stock". Their interface is more complicated but I am getting used to it. Wondering if there are any well-back-tested option strategies for generating 1% monthly. Please let me know what you guys think. Otherwise I use TOS options scanner to find options that meet my criteria each week, so what I wheel changes every week. 1/24 We would like to show you a description here but the site won’t allow us. Understanding regular, best, and worst-case scenarios shed light on the wheel strategy's adaptability. If assigned you get TLT at 4% discount else collect the premium with 7% return for August 18th expiry. it quickly becomes pretty gnarly. I would greatly appreciate a list of four or five underlyings that you all think are good for the wheel strategy right now. Also your amount of However, being new to this strategy, I'd greatly appreciate any advice or insights from those who have experience with the wheel strategy, particularly when it comes to weekly options trading and managing positions during market fluctuations. 3 delta and it's been good but looking to get into something with higher premiums. With the insights and tips provided in this comprehensive guide, you can master the Wheel Strategy and take your trading to the next level. You need to be approved for options level 2 in your Roth IRA to do cash-secured puts. Wheel is my predominant strategy and I trade on it mostly 80% of time. 00 every couple of months. Also buy back contract's after 50% profit and re sell again. I think we should focus on selling Put and we should look for stocks based on that thinking. 4-2% premium. 19. Conclusion The Wheel Strategy presents a balanced approach to options trading, combining the potential for consistent income with manageable risk. A place for options traders to share ideas, information, and wisdom specifically about selling theta decay using the wheel strategy. One is to profit primarily from focusing on selling Covered Call by finding stocks that have a high potential to continue to increase in price. Also realized best to write puts on mondays, and calls on wed/thurs to expire that week for most efficient premium. Hi All, Looking for a recommendation on how everyone scans for companies to run the wheel strategy on (or any strategy to be honest). Hi, I created a flow chart for the wheel strategy, based on receiving weekly premiums. The stock fluctuates between $1. I know about finviz, barchart, etc. META/TSLA), and stick with good/sold companies. But if you plan to sell covered calls or to implement the Wheel over an extended period of time, then it appears that you generate substantially more premium by selling weeklies rather than monthlys -- for example, if you sell a single call a year out, it looks like you generally generate about The wheel is not a good strategy. Jun 28, 2023 路 The Wheel Strategy involves selling put options and potentially, covered calls. I'm planning to sell CSP's, and if getting assigned, the sell CC's, after stock gets called away, rinse and repeat. Options The way I trade the wheel works to collect premium from the CSPs without being assigned, but if assigned the credit collected already lowers the net stock cost to make recovering selling covered calls faster. So my question is what are the reasons not to do the wheel strategy? Provided you are comfortable with owning the underlying. If you are good with this, then these are the stocks to trade. Choose stocks for this strategy that you're content to hold in the long run. A Comprehensive Guide to Wheeling ETFs. The wheel is relatively easy to understand and execute. Ford good for the wheel? I’m only using 1k$ so my options are limited when it comes to the wheel, is Ford a good stock to wheel or is there a better one you can suggest? A place for options traders to share ideas, information, and wisdom specifically about selling theta decay using the wheel strategy. So when your assigned in a wheel strategy it can cause big losses if the stock falls well below your put strike before you're actually put the shared and can sell covered calls. One strategy in particular that is becoming much more mainstream in the options trading world is “The Wheel Strategy”. Our Wheel Strategy Options Screener at WheelStrategyOptions. I'm back over a year later to share my story. He buys three long-term puts and trades the wheel strategy using near-term options. It combines a long equity exposure with a short volatility position, both of which tend to make money over time. I sprung for 5 years of option data on SPY (for about $200) and backtested a wheel strategy for each year. 3 month wheel strategy returns Curious what people doing the wheel have done in the past 3 months. If the options expire or closed for a profit without being assigned, the premiums are all profit. The most common result of retail getting into options is losing large amounts of money and quitting in disgust. I’m just trying to help as many new traders get started and try to avoid the costly mistakes I and many others have made . The wheel is one of the most common options strategies that beginners use - for good reason. The premiums are all profit if the options expire or are closed early without being assigned. Even GOOGL and AMZN have lower premium when compared to AMD. The Wheel (sometimes called the Triple Income Strategy) is a strategy where a trader sells cash secured Puts to collect premiums on a stock or stocks they wouldn't mind owning long term. The put also act as a hedge to protect the portfolio if the stock falls This is not a bad strategy but some questions I Has anyone here tried running the wheel on Ford? If so, how did it work out for you? It seems like a pretty cheap entry; however, what scares me is the declining value of the stock over a long period of time (even though the company seems to be doing well and is extremely undervalued). Using a wheel as the strategy, does anyone here average $2k+/week? I'm going to try it out at a small scale starting Monday… How are wheel strategies in options trading taxed? Would I have to pay taxes for each time a covered call contract gets assigned even though I don’t withdrawal the money from my personal brokerage account but automatically then buy more of the same stock/different stock the same day? Note: my options strategy is to write covered call/cash secured puts on a monthly basis so as not to get We would like to show you a description here but the site won’t allow us. When appropriately used, the wheel is an excellent alternative to a buy-and-hold strategy that will produce higher returns with lower volatility. Although each component individually -cash secured puts or covered calls- is fine, there is little-to-no benefit in holding options to expiration. 5% a month with expirations ranging from 2-6 weeks. It’s easy, sell weekly naked puts, then on Monday sell new put or sell call on assigned stock. And the reason is that it’s very simple to execute, and can be highly profitable if traded the right way. All you need to execute the Wheel Strategy is to sell a Put Option on entry and […] I am fairly new to options trading, have had wild swings buying longer options but am looking for something more consistent. 28 votes, 41 comments. The Options Wheel Strategy is an income-generating options trading strategy that combines selling cash-secured puts and covered calls in a cyclical manner to collect premiums, acquire stocks at favorable prices and generate consistent cash flow. Lots of talk about the wheel strategy (and variants) here, but can we compare the annual (ised) returns to give users a better idea about what to expect and what a normal, sustainable wheel strategy looks like? I only just started myself, so don't want it taken for a benchmark, however, I am liking what I am seeing so far. I've been doing the wheel strategy right now with AMD. Anyone here like CHWY to beat earnings, i could do some CSP on it. It really appeals to me and seems like an idilic way to make money which scares me. By selling cash-secured puts and covered calls in a cyclical manner, traders can generate steady premiums while maintaining the flexibility to own and sell stocks at strategic prices. Yes I've been told many times how the Wheel is an inferior options strategy and I'll never beat the market. It was a little more involved than the monthly credit spreads I was previously doing. Buying stock and then selling both a put and call So I recently started an experiment which I intend to keep pursuing for at least a few more months. We are selling options to WSB degenerates using thetagang strategies! 馃悓 馃悓 馃悓 At such time I will revert to my original strategy of selling calls a 10-20% OTM weekly with a target of 1. Compared to just holding shares, the wheel strategy "works" as long as you believe that options are overpriced and you can get more by selling premium than you'll lose on missed profits if the stock rips. That general strategy is what is flawed. Where the wheel can get into trouble is over concentration and or over leverage. cost of underlying (and thus cost of 100 shares in case it gets B&H typically will outperform the wheel, all inclusive. Looking to get my dad the best book on the wheel strategy. I suppose I've been lucky 3 years in a rowthrough bull markets and bear markets alike! Side note, I was initially going to post on r/optionswheel but they don't allow pictures (likely to keep WSB bros out) and also no cross posting 馃様. If you short stock (vs and ETF) then be prepared to hold stock for a while when things turn south (e. I'm hoping to get some suggestions (which I will of course look into and do my own DD afterwards) for your favorite stocks to use the Wheel strategy with options. Protective puts work if you believe that downside options are underpriced. This is an update to the 2020 "The Wheel" backtest reddit post, bringing the study current The wheel options strategy combines the cash secured put and covered call strategy to create a consistent investment-like options strategy. I've found this 50/50 strategy is much better suited type of wheel especially for TSLA. Good luck! When it comes to trading the Wheel strategy, I think there are largely two schools of thought. I wanted to understand if there is any catch in doing this or it works only in a volatile market like today. I'm fairly new to selling options, mainly because I never liked trading stocks. Thoughts on: Favorite stocks in terms of premium vs. seems like a sideways stock works best for wheelin. 75%-1. The options premium that are net profits will show as profits to be taxed accordingly. Share Add a Comment Sort by: Best BTW, the wheel strategy is not “mine” but one I think is the best for me and for many new options traders to learn how to get started. In the event that I am holding my initial shares and get assigned my puts, I will then use margin bull put spreads to DCA my assigned puts. Anyone with experience and can share the pros and cons? Thank you in advance Share Add a Comment Sort by: Best Open comment sort options Top New Controversial Old Q&A phat-fire • I have done the wheel strategy. A formal study of the SPY Wheel 45-DTE backtest is now live (direct link to full study is at bottom of this post) and explores the performance of wheeling SPY using 5, 10, 16, 30 and 50-delta options from Jan 3 2007 (the earliest date options data is available from the data provider) through Mar 31 2024. A recent stock that I have done it with is GNUS. Let's Talk About: Exchange Traded Financial Options -- Options Fundamentals -- The… So my options selling (wheeling) account has been growing for almost three decades by sticking to the following: Seek consistent smaller wins that average 0. Let's say we have >500k cash in a margin account, why can't we just sell secured cash puts on SPY weekly/monthly and make passive income with low risk and effort?. Beware of the potential downsides like bag holding see P/L curves binned by exit mechanic review charts and tables highlighting various performance metrics such as max drawdown, total P/L, Sharpe ratio, total return, etc. g. Based on the screener below, TLT will screen as oversold if it closes below 98. Have ~$5,000 to start trying to wheel for the first time, what would be a good stock to start with? Recently, I started another strategy on a few stocks like AMZN, TGT, TSLA, & AAPL, where I bought 100 shares and sold ITM call (Buy write strategy). The major downside is you will cap your growth (which isn't ideal for someone your age) and while selling puts you won't collect any dividends. Just selling covered calls doesn't have this benefit, and if the stock drops after buying it then it may take a lot longer to recovered. It not only shows the wheel doing worse on multiple backtests vs buy and hold, it also shows that the 50% max profit exit strategy (popular on this subreddit) is worse than hold until expiration. Those with higher premiums are usually crap stocks that will drop and cause losses. Wanted to see what everyones favorite stocks to wheel under $10. Thoughts? I have tried to play the wheel strategy with a couple stocks (instead of just rolling my calls over) however at best I waste a couple days of theta decay and at worst I can’t do the put portion at all. To write a put I need to have the cash settled on my account, which wastes three days (the day the call executes plus T+2 settling), and if I am using margin for the stock I don’t have the How do folks keep track of progress - cost basis etc for wheel strategy I've been using Tradingdiary Pro, which I've found quite nice and have paid for in the past. 40 and about $2. The goal is to sell enough premium to finance the long puts. 00 a share. It can outperform during specific conditions, but over the long term it will generally underperform buy and hold. Wheel Strategy on KO? I’m new into options and I was wondering if doing a wheel strategy on Coca-Cola is a sound idea? It’s inexpensive and pays a good dividend. I’m looking to get back into the wheel for the next month and a half. My strategy is called the Triple Income Strategy and is an options strategy based around wheeling dividend paying stocks. 90 which is at around 1% screening limit and 4% below today's price. Source: Fidelity Options Levels What do you guys think of Mr. I realize that you're forfeiting upside by selling premium instead of holding stock, but Picking stocks based on Reddit or news is likely to underperform. The different ways to run the wheel have different DTE, delta, when to take profit and roll, etc. We would like to show you a description here but the site won’t allow us. It's off a HELOC so I'm not planning on using any additional margin. Looking forward to your thoughts and guidance! I am debating either running the wheel strategy on SPY or doing a PMCC In the wheel strategy: Selling Cash-Secured (50% Margin) puts at . Made 40% realized gains after suffering for over a year holding a bag. Doing weeklies staying below . Thank you very very much! Share Add a Comment Sort by: Best Open comment sort options Top New Controversial Old Q&A ScottishTrader • Has anyone ever seen a thorough backtest of "The Wheel" strategy (also called Triple Income)? I'm specifically interested in whether "buy and hold" outperforms selling puts using margin as collateral, while parking cash somewhere safe with a modest return and paying off the margin immediately if assigned. A friend and I developed an automated system based on the wheel strategy (Marcus). Share Add a Comment Sort by: Best Open comment sort options ScottishTrader • ScottishTrader is a Reddit user who made a really informative post that inspired me to pursue this but he outlines the general strategy without delving into weekly plays. The wheel strategy has always been something I liked as it is low risk, but the returns are also not as great and takes up a lot of capital. He has a great video on the wheel strategy and a simple excel spreadsheet to track your cost basis. I'm back over a year… I have set some money aside to start learning/practicing the wheel strategy. The problem I had was any time I wrote calls, it shot up way higher than the $5 OTM strikes I wrote. Yes, you can wheel in a Fidelity Roth IRA. Do you agree? Disagree? A place for options traders to share ideas, information, and wisdom specifically about selling theta decay using the wheel strategy. I have been learning about options over the past few years and wanted to implement some of the strategies starting last year. decided to buy them back at loss and hold shares rather then them getting called away. Whether you are a seasoned options trader or just starting out, the Wheel Strategy can be a valuable addition to your trading arsenal. Is there a way to find stocks (around 100$) that pays good premium for covered calls and cash secured puts ? I see AMD always pays good premium and I have tried wheel strategy only with AMD so far. The Wheel (sometimes called the Triple Income Strategy) is a strategy where a trader sells cash-secured Puts to collect premiums on a stock or stocks they wouldn't mind owning long term. If you're selling an OTM put and then buying an ever farther OTM put, what you're really putting a bet on is the Using the Wheel Strategy for Value Investing in Quality Companies In value investing, the aim is to buy-and-hold shares of high quality companies at a discount to their "fair value". Provided you like this stock and are willing to hold it for months if needed, then you are doing what the wheel was designed to do. The aim is to earn income through premiums and perhaps buy stocks at a lower cost. However what I love about it is how your risk is minimized and you can create monthly or even weekly income. I currently use Questrade but I am considering Interactive Brokers for the lower option fees. The same thing can be said for any other options strategy with no edge involved. All shares are paid for and the option premiums are high as a percentage of the price. Ok great minds, help me rationalize this…I am struggling. Option 1: Sell ATM 0DTE on Monday, Tuesday for Wednesday expiration, and Thursday for Friday. Retail selling options is a quest to find an edge, and it usually doesn't work. Hi, does anyone have experience with selling cash secured options in sg? Looking to utilise the wheel strategy, which broker… Apr 13, 2023 路 The Wheel Strategy is one of the most popular Options trading strategies among traders of all experience levels. com into something more suitable to the wheel strategy. The small amount is only used for a buy-write strategy, it seems to be generating an income > CSP on SPY. , but I'm really looking for criteria you use to pick the companies to trade this type of strategy. Whenever the option moves… After trying pretty much every options strategy over the last 5 years, this is the strategy that I have found to be the most rewarding and safe. Jan 26, 2022 路 The Wheel Strategy is great for generating semi-passive steady income consistently throughout the year, with lower risk than many other option strategies, and usually widely exceeding the results of a simple Buy&Hold strategy. I know it's putting all your eggs in one basket, but it's a really good basket with 500 kinds of eggs Share Add a Comment Sort by: Best Open comment Dec 1, 2024 路 The options wheel strategy is an income-generating options trading strategy that both beginners and experienced traders can leverage for profit. Also, near expiration, you have all the downside of stock (unlimited downside risk) plus the downside of options (limited upside) but you have none of the benefits because the The longer version: There are many posts discussing the wheel strategy (selling OTM puts to collect premiums, getting the stock you want at a discount if assigned). 256 votes, 333 comments. Then rinse/repeat. But we're also holding bags that would probably wipe all that out. 146 votes, 43 comments. I been doing the wheel on weeklies since DPO, started with multiple puts until executed. After previously doing spreads (which made money, but it was slow and boring), then failing at day trading options, I decided to try this strategy to generate steady income. What are your recommendations? Most of you are mentioning AAPL, META, GOOGL and the occasional SOXL and MARA as the products that you wheel the most. It’s simple in theory, but I want to hear from you your experiences and any cautionary tales. One strategy I found recently that I've seen no one talk about is doing the wheel strategy on futures options. strangles/condors) and manage your delta to remain neutral (either via stock or additional options) as opposed to just selling CSPs into CCs if you get assigned. redditmedia. If you have the money, you’d be good (as opposed But that also shows why it's so difficult to backtest the wheel strategy beyond a single ticker. My stock of choice was INTC (joke's on me so far). I will not likely get a big break out if it happens but that’s okay. I've searched and scoured the internet and reddit for option strategies, and one of the best I've came across throughout my life is "The Wheel Strategy", If you don't know what that is, I wrote a brief explanation: You can also track your wheels and other options strategies here on this website. 15-. It allows you to group option trades of the same underlying and calculates average price per share on assigned shares. You effectively always buy above market and sell below market. You are also willing to own the stock at that price (the owning of the 100 shares can be seen as a risk or a secondary goal, please correct me if I am wrong). com We would like to show you a description here but the site won’t allow us. I have finally decided to invest with/in options and I have chosen Wheel as my first strategy. Hey everyone, I’ve been thinking about a possible strategy of running the wheel on IWM for weekly income and wanted to run it by you guys for your thoughts. An option gets exercised during the wheel when you could have bought lower (CSP assigned) or sold higher (covered call exercised). 10 votes, 41 comments. Feb 14, 2025 路 The Wheel Strategy prints cash - if you pick the right stocks. Keep reading to learn more about the wheel strategy and how to become successful at trading options. I would recommend first of all learning the two basic types of options (calls and puts), what it means to buy vs sell options, and what the Greeks are (Theta, Gamma, Vega, Delta) 20 votes, 25 comments. Would it be a terrible idea for someone with about 50k to use the wheel strategy on SPY? The sp500 isn't going anywhere, is probably going up in the long run, and it pays great premium. I think there are a few options, but one thing I would suggest is to ladder into the wheel. We are both around 50% average annualized for our closed wheels. . I just got into the wheel strategy as I saw signs of the bull market coming to an end, I wanted to diversify my investing strategy. Jan 31, 2025 路 Final Thoughts The Wheel Strategy is one of the most powerful options trading methods for consistent income, but success depends on picking the right trades. Jul 8, 2022 路 The options wheel strategy is an income producing strategy that involves selling put options, potentially owning stock, and selling covered calls. What stocks do you guys use for wheel strategy? Share Add a Comment Sort by: Best Open comment sort options [deleted] • Comment deleted 27 votes, 35 comments. With low volatility the premiums won’t be big but it’ll be something. No matter what options strategy that we discuss, there are good and bad about them. While you can outperfom using theta strategies, nothing is ever guaranteed your best best when implementing this strategy is to sell both sides (ie. Also, you will find the profits are as good Thanks for the reply’s, just trying to survive the bear the wheel seems like a little safer strategy if using weekly options you only have to get the market direction correct for a week. SPY is at about 500 so contracts are around 50k to cover. I had the idea to run a wheel strategy on TQQQ ETF which had mixed feedback from the reddit community. I am studying the wheel strategy and it seems to me that selling puts 1 week out may be better than 30-45 days out? As an example let me choose Netflix. I started by selling cash covered puts in 2022 when I thought the stock was undervalued. 2 Delta If I get assigned, selling calls at my breakeven price to recollect the cash or constantly rolling forward the put if SPY keeps tanking. Has anyone in here used the Wheel to juice their dividend stock purchases? I’ve got about $6,000 I have that I can put to good use without impacting my life thankfully and trying to figure out what to do with it. What I understand so far: When selling puts, you anticipate that you will be assigned the 100 shares at expiration if the stock is trading at or below the strike price of the put option. For starters, I opened a ToS account to start simulated trading. I used only Friday expirations and 1 week options, using the closest OTM option in every case. For me personally, the Wheel strategy… Look up @inthemoney on YouTube. I am considering starting the wheel strategy and would appreciate anyone's advice to avoid errors. I’ve been exploring options strategies that let me generate (relatively) consistent income and I was contemplating a wheel strategy. Frankly, I disagree. You're talking about the Wheel strat with only 1 day holds, which is The general idea of the wheel is to sell puts until you get assigned, then sell calls until you get assigned. TL/DR. No, the 16. What stocks do yall like for the wheel strategy to make weekly income. Option 2: Sell ATM on Monday for Friday expiration weekly Option 3: Sell ATM on Monday for Wednesday expiration, repeat for Friday. Daily seems like you would be removing most of the theta aspect (as almost all the time value is gone) and focusing on delta. Another The monthly options I find are the best to run the wheel on with a March 26 30-delta pulling in around 4,000 on 45,000 or about 9%. Jun 17, 2025 路 The option wheel strategy combines selling options and owning securities in an attempt to maximize profit. As of right now you can sell Apr 26 NFLX (6 weeks out) 335 puts @ $11. Once you get into selecting the underlying, varying entry/exit criteria for the market, etc. Other good stocks to do this with are NAT, BTG, TLRY, WATT, and WKHS. Hi, am just wondering since the wheel strategy works best if the underlying has lower movement in price, would it be a good idea to use ETFs for the wheel strategy? Am thinking of SPY and QQQ. Wheel is for beginners and passive option traders. The total premium for 4 weekly calls is generally a bit more than the premium for 1 monthly call. gdqihdx bbgave chihgop qbsye rtbo pqynmjjn caqcvdu uzac suzoikg rjgsay