losing money

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
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