How To Trade The Wheel Strategy For Income

Trading the wheel strategy for income is one of the ways Brian trades in retirement. In this video, he shows us what he looks for and how he approached the wheel strategy for income.

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[scottwalton]

This is great stuff. I've recently started the wheel strategy on a couple of ETFs that I want to also have long term ownership in, so when I collect premium (either on the put side or call side) I use that to purchase more shares at the current level. Hoping this will speed up the compounding effect along with the dividends (as long as I get assigned before the ex date) SCHD has been working out the best so far as its volatility is low. Have you taken dividend paying stocks/ETFs into your thought process with the wheel?

[scottwalton]

What do you do if you are assigned the stock through your put but it does not fall below your purchased put in your spread? Do you sell a call and purchase another protective put for the following week?

[timothyscott]

Thanks for the presentation. You gave me some food for thought.

[stevek]

Hi. what do you do w the long put at expiration if you took assignment of the short put when thats ITM?

[victorpistone]

What's the plan when your put gets buried and you're 10% below your strike and it gets executed? like the recent declines.

[sandropessina]

What about put ratio spread (1:2) instead of naked put? It gives a smaller credit than naked put, but a large profit area with a small price decline.

[mrbee]

i was always under the assumption that spreads are hard to defend, hard to roll? What happens when the stock falls between the 2 strikes?

[sjaw]

Do not do naked put. If your put is ITM and you don’t have the $$$ to buy the shares, you will be hit by margin call. You would be risking the broker selling away all your assets to cover the 100 shares. Make sure you have cash secured for the potential buying of shares if the put is in the money!

[Tradelikeace]

So say if I’m looking at riot Friday expiration I’d it finish above the strike price I would collect the $2000 on the cash secured put ?