Best Bargain Stocks for the Option Wheel Strategy

In this video, I share more details about how I run the wheel option. My guidelines and how I do it are a bit different than how most traders do it. It can be very profitable to run the wheel and if it's in a tax-deferred account it has little downside if any. I also share two bargain stocks that I am running the wheel on.
I have been on a journey to learn the right way to trade stock options. Along the way, I have decided to share with others both my successes and failures. My hope is that others can learn and shorten their journey to learn how to incorporate one of the best ways to make passive income.

Thanks for joining me on my journey!

Uncle Jim

My Blog with my options strategies, monthly reviews, and lessons on getting started.

If you would like early access, special content, and some handholding then check out my Patreon page.

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[ipxmax]

Great video. I am in the same strategy, yesterday I sold puts in PFE and WBA. Cheers!

[xunlinkx]

Hey Jim! Local Atlanta person, love seeing your vids. Keep it up! Hope you got all your stuff idling in SPAXX (last video I watched)

[ILoveTrains]

Thank you for sharing your evaluation process of these option purchases and your strategy.

[willydear]

Bullish on a stock then sell ATM puts and 15 to 20 delta calls. Neutral market then 25 to 30 delta puts and calls. Bearish on a stock then 15 to 20 delta puts and ATM calls. I saw this on Reddit and it made sense to me. I also believe in a more conservative wheel versus those who say ATM calls and puts and always try to not hold the stock.

[yvesgacinya]

Quick question: Why not do weekly? I have been running the same strategy on Facebook but it requires a ton of cash.and I place trades every Monday, and so far so good. Thank you for sharing, I like your examples.

[tommytfg]

Hey, I like what I see, great info, wish I knew about this sooner in life. I once had apple and Amazon shares in the 1990s and didn’t know what I had and sold them.
But anyway that’s all in the past. Now I have $ to do this but I’m nervous, any advice for me? Thanks for the videos as well, & I’m thinking about trying the free trial next.

[stevenboitano]

Just for clarification, my understanding when selling CC or CSP you keep the premium no matter what, unless you buy the option back before expiry. Is that correct?

[nat]

Banks got hit hard earlier this year because interest rates were climbing so depositors took out money from banks to put into money market accounts. That's part of the reason bank stock prices dropped. If interest rates drop, shouldn't bank stock prices climb once the Fed starts easing next year? One article I saw touted Bank of America because Warren Buffett is a major shareholder.

[vichart]

What is a good safe dividend etf to trade the wheel on ?

[Jeremy-vbtv]

Good info, thanks for sharing. I like the wheel strategy and I like what you did with the credit spread on the put side. I haven't been doing that, but I think I'm going to try that, as I'm usually aggressive with the strike price and prefer getting assigned. Do you do that credit spread on the call side too?

[aritramajumdar]

Hi, If I exit with 20-25% of the premium received in credit spreads with 10-15 delta can I be profitable? As in many cases I am making profits but one big loss wipes out previous gains, do you suggest 2x or 3x stop loss?

[jameswilson]

Thanks for the information on these two companies. I will certainly consider them for future option trades.

[crowdfundcrew]

Good information, but I’m not sure I would consider active options trading and constant research to be “passive” income. Dividends might be but working the wheel isn’t. I’ll be checking the stocks you listed though!
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[jomara]

Not sure why you are giving away premium by not going naked on your put since you do want to own it? Isn’t that just cutting your profit unnecessarily?

[pakviroti]

You talk about generating money in a short period of time, and THEN, say three months or more! That’s not short. If you want to spin the wheel faster, trade stocks with weekly options. Also, you ramble way too much.