How To Manage Losing Trades For The Wheel Strategy? – Video

Discuss how to manage losing trades for the Wheel Strategy based on two different scenarios.

1. When a stock is undervalued
2. Trading based on Implied Volatility (IV)

TAK and CVM were given as an example for each scenario.

Video Notes

• Define When You Plan to Get Out
  • Price / Time Frame
    • Technical Analysis / Fundamental Analysis
• Define what you will do
  • Selling Put
    • Let it get assigned? (Under Valued)
    • Roll it out? (Under Valued)
    • Close the Trade? (IV Play)
  • Selling Covered Call
    • Let it get assigned? (Under Valued)
    • Roll it out? (Under Valued)
    • Close the Trade? (IV Play)
• Define Market Conditions
  • Closeout everything?
• Follow Money Management (only risk x% per trade)
  • Look for underlying that you can afford based on your account size
• Understand Your Win / Loss Ratio
  • Helps you to think logically

• Author
• Recent Posts

Tony

I have been trading options since 2010 and have been testing and experimenting with various trading styles. Fundamental Analysis based, Technical Analysis based, Trend Following, Day Trading, Swing Trading, etc.

My primary option trading strategies incorporate volatility and I am constantly experimenting with various trading strategies to improve my PNL.

I hold two Master’s degrees (MSc and MBA) with career experience as a cancer research scientist and a digital marketer.

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