Best Expiration Date For Covered Calls and Puts In The Wheel Strategy

In this video we show the best way to choose and expiration day for your calls and puts!

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One of the most important things when trading options, specifically the wheel strategy, as a beginner is deciding on an expiration date. In this video we will talk about different expiration strategies depending on the type of option you are trading with. Sometimes it is best go with a 7 day expiration, sometimes 45 days till expiration, and sometimes even a year.

I will show a few examples from my portfolio of how I choose expiration dates in different situations as well as some of the options greeks I look at like theta and delta.
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DISCLAIMER: The content discussed in these videos are solely my opinion and should never be used as financial advice. This channel is for entertainment purposes only. Make sure to consult with a professional before making money decisions. This video and description contain affiliate links, which means that if you click on one of the product links, I’ll receive a small commission; all of which helps grow the channel! Thank you for your support!

#TheWheelStrategy #Trading Options

[kishanrao]

Brad- thanks for these videos. I started following your thread about a year ago and started the wheel strategy in earnest about 9 months ago. It’s really quite powerful and what’s impressive is that my portfolio has outperformed all indices .

The other thing I thought worth sharing is that the wheel strategy is especially effective with the leveraged ETFs. Normally, folks advise against playing with these given the violent way that they swing. However playing the wheel with these is pretty profitable. The premiums on these are quite high and even if they violently move in one direction, their options chains still net decent premiums very far out of the money even for those that expire relatively soon. Plus, your cost basis reduces pretty quickly due to the high premiums further lowering the risk profile.

[samwalker]

Nice job breaking it down, Brad. Keep up the great work.

[kathyandmo]

One thing is for sure, you are entertaining. I enjoy your videos, and I learn some stuff, too.

[kenansaaloukeh]

This is one of the best videos I've ever watched on YouTube. Thanks bro

[learningyt]

Well I got a BSc(QFin) and I highly regard your knowledge in option trading. Thanks a lot for the info!

[dizzyflow]

Can you explain in further detail why your basis gets wiped out? Would love to understand that better.

[CardsVilleThe]

hey Brad, thanks for the video. Been doing some wheel strategy the last few months and I find myself checking options daily but not really doing anything no matter what the situation is. If I'm at risk to be assigned I usually just let it expire and let the assignment happen, and if I'm up 75% or more I'll let it expire worthless and occasionally close early. So what sort of things are you looking for when you daily check your options and what are you doing about it?

[RubinPetkoski]

And here I am playing BYSI calls/puts getting 30% return monthly thinking I need more

[kyuro]

Keep up that great work Champ Amd premiums on 🔥🔥🔥🔥🔥🔥

[edward]

I got across this video today and what a rollercoaster for your put on CCL. Are you still holding the put? Let me know, thanks.

[dieselviper]

You should do a video about iron condors

[EulalioMagana]

If I don’t want to get assigned a covered call, I try to sell a covered call with a delta under .30

[SafarWIP]

weekly works fine but youll have less time to react when you write a call or sell a put, with a 21-28 day contract after a week youll have more time to react as the theta gave that to you:)

[astoops]

Hey Brad, I sold 3 covered call contracts worth $450 from the start, a month ago. Now it's only worth $39 with 17 days left till experiation. Is it smart to buy back those calls and resell those calls for another $400, instead of waiting 17 days till experiation, to be able to use the shares for covered calls? Im looking to put this next premium into a stock that I'd like to do asap. What is your thoughts?

[danielstrutz]

Brad, started watching recently. Super helpful stuff here. Been learning and playing with options. Watched this video and also sold a PUT on SWBI (3/18, $20 strike, $1.45 premium). If you're watching the market today, you know this one is getting killed. This is the first time I am significantly ITM, trying to think through if/when I should think assignment might/would come? Or with this being 105 days out yet, is it likely to not be assigned?

[jcinewilliams]

Brad, love your content not sure you did this already but could you explain the red a and green days on options. When I see it red I see that as bad. Or does that mean a good thing?

[kishanrao]

Hey Brad- for options that are deep in the money and close to expiry, do you (1) roll them out (2) close them or (3) let them get assigned?

[raztube]

Still don’t get the “wash rules” can someone explain it to me 😰?

[raztube]

Huge premiums on HIVE stock I might lose everything but damn those juicy premiums.

[DMC]

NNDM just went to weekly’s i have 2500 shares. I just sell covered calls. Thanks for the video. Thanks for Sharing i didn’t think about looking at the return i want