The Wheel
Combine cash secured puts and covered calls into a systematic, repeating income strategy.
How the Wheel works
The Wheel combines cash secured puts and covered calls into a repeating cycle. Sell puts until you get assigned. Then sell calls on those shares until they get called away. Then start over. You collect premium at every step.
The mindset behind it
The Wheel is not about predicting price. It is about having a plan for every outcome. Whether you are holding cash or holding shares, there is always a next move. That predictability is what makes it repeatable.
Why it works
You are always the seller, which means time decay works for you every day. The Wheel gives you a clear response to price movement instead of leaving you guessing what to do next.
Choosing strikes for the Wheel
For puts, pick strikes below the current price where you would genuinely be happy to buy. For calls, pick strikes above your cost basis where you would be happy to sell. Do not chase premium at the expense of either of those rules.
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