Trading Room

Sorry, we are no longer accepting new members.

Find out how I trade the Wheel Strategy and got a 40% return in one year!

Selling Put
- Selling the right for someone to sell the underlying to you
- You have to buy the stock
Selling Call
- Selling the right for someone to buy the underlying from you
- You have to sell the stock
The Wheel Strategy Cycle
- Sell Put until getting assigned
- If assigned, sell covered call until get called away
Key Nuances of the Wheel Strategy
- Find stocks that you don’t mind owning
- Purposely getting assigned by selling deep in the money Put
- Rolling Put or Call to avoid an assignment
How I trade the Wheel Strategy
- 1) Sell Put.
- 2) Buyback when it hits your target or you can wait until it expires out of the money. Go back to step 1) and keep repeating it.
- 3) If the stock price drops and gets assigned, sell Covered Call until the stock price recovers to the entry point.
- 4) Sell the stock as soon as you can. Do not hold it so the capital can be deployed for the next Put selling cycle.