MY High Income Strategy for Consistent CASH FLOW (Wheel Strategy)

On this channel I've primarily talked about finding the best ETFs for maximizing dividend income, but the one thing we haven't discussed is how you as an individual can generate income for yourself.

And this brings me to the Wheel Strategy.
Now this isn't a day trading, scalping or a swing trading video.
I want to focus on a more passive route, one that is especially beneficial for retirees.

There are many income strategies like the very common covered call strategy.
But the one issue I've always had with a covered call strategy is that your underlying position on the stock or ETF is bearish.

But what if you don't want to take a bearish stance, what if you want to remain bullish, and still collect premium income?

The wheel strategy is an options trading strategy used by investors who are bullish on a stock, and have a goal of generating income, and acquiring an underlying asset at a reduced cost.

In this video i go through the strategy in FULL detail along with a variety of tips and tricks you can use to enhance the income generation of your portfolio.

✅Market Research Platforms✅

Seeking Alpha - Get $50 OFF + 7 Day Free Trial

Alpha Picks

Koyfin - Advanced platform for researching global stocks, ETFs, Mutual Funds & more:

✅Investing/Trading Platforms✅

Moomoo - Get up to 15 FREE stocks:

WeBull - EARN 5% APY on CASH NOW!

⚠️⚠️⚠️
Disclaimer:
I am not a financial advisor. Viktoriya Moskalyuk does not provide investing, tax, legal or accounting advice. This video is for entertainment and educational purposes only and should not be considered as financial advice. I am solely sharing my personal experience and opinions. I highly encourage you to do your own research- there is a risk of losing money in the market. You should consult your own tax, legal and financial/investment advisors before engaging in any transactions.

🚨Thumbnails are NEVER a direct quote from any public figure. It is a form of art and is strategically used for audience engagement. DO not rely on the “quote” as a real statement from a public figure.

🚨Advertiser Disclosure:

The links provided on this channel are from affiliate partners, which means that if you make a purchase through my affiliate link, I may earn a small commission at no cost to you.

📚BOOKS TO READ📚

THE OPTION WHEEL STRATEGY:

COVERED CALLS for BEGINNERS:

Investing for Dummies:

[MizThe]

I'm convinced that investing $50k-100k in the right company before it goes big is more important than saving for retirement. However, picking the right company is so hard that saving might be safer, cuz who would've guessed Nvda? I have around $200k in a HYSA and want to invest. What are the best opportunities now?

[richardthorne]

I was waiting for this one ❤. Very nice job explaining the concept. The wheel strategy has been a great strategy since I took early retirement. I typically go 30 to 45 days out and sell on the indexes (IWM, SPY etc) and quality stocks and I use a portfolio margin account. If assigned the shares, i have true wheel positions where i sell CC at cost basis and I have others that i call permanent wheel positions where i sell CC way above my cost basis looking to also make $ on the shares. In 2023, I made $63, 000 selling options. It’s a game changer. Great job 👏

[madras]

Ive been using on TSLA, SMCI, NVDA, COIN, SOXL, and TQQQ on a weekly basis. I do this within my Roth and traditional IRA. No margin.

[alan-jfmz]

just recently discovered the channel. love it. thanks. I use covered calls in a bullish way. I don't want to hold any stocks long term, so I buy a covered call only on companies where I have a strong bullish opinion. using the at the money strike and picking an expiration date about two months out, has been giving me excellent results. since my account is less than 10k, i'm getting better results by using companies with share prices between $5 and $10/share rather than $20/share. I started this in oct '23, and have grown my account by 16%.

[kevinmabrysr]

Thank you Viktoriya for helping retirees, we need it!

[tonyravioli]

I've watched a lot of wheel strategy videos and this is one of the best. Thanks!

[AlexzanderMckenzie]

I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both? However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait but watching my portfolio of $450k dwindle away is such an eye -sore.

[robtkatz]

A covered call position is not a bearish position. If you're bearish on a stock, a covered call will lose you money. A covered call is a position you take if you're neither bearish nor bullish. A covered call is a position you take if you think the stock won't go down by much and you don't care if it goes up a lot. If you're bearish on a stock, sell it if you own it. If you're exceedingly bearish, buy a put. Over time, the wheel strategy will most likely lose you a lot of money.

[RichardAkin-qjxt]

I think 3-10 days from expiration is the best for selling calls and puts. It's easier to predict the stock price and you can do more contracts in a way shorter time, I've tried both and in my opinion it's just better for cash flow!!

[thehoopscoop]

Very nice to see your enthusiasm for options. 🤗 My only comment here is that covered calls are technically bullish positions. I think you meant to say that short calls are bearish. But the overall trade is going to maximize profits when the stock price reaches the strike price at expiration. 👍 I think I will subscribe as your SVOL update and now seeing you actually diving into options and learning about them yourself has me intrigued. 🧐

[johnbasil]

How about doing some live wheel strategy trades so we can follow you over time. It's not all mechanical. There are decisions that have to be made if you're assigned and
the stock keeps falling.

[PukeSkinwalker]

Covered call is about monetizing the option premium and then buying it back when it is done. It works wonders when you write a covered call and hold it until after the earnings release and then buy it back because that is likely when there is a small move.

[buyerclub]

Great introduction of the wheel. I have used it on and off with SPY but using very short term timeframes. (2-4 days typically) While I did like your idea of averaging down, it does require alot of capital to do so. Also, I am not crazy about "doubling down" on a losing stock/trade. But in certain situations I think it makes a lot of sense. BTW, first time commenter on your channel. You seem extraordinarily knowledgeable about the ETFs you cover. (or in this case on the wheel). Can I ask you, are you in the industry, or perhaps a finance professor? I tend to watch many, as I do think you provide a lot of good content.

[cozmodog]

My broker pays 4.8% on cash balances. So rather than take assignment and sell calls, it makes more sense to just roll the original put down and out if necessary. Since these are credits they don't negatively impact cash balance. Basically my account generates 4.8% while still being totally available to sell options for more return. The only thing I would take assignment on is something which has a greater than 4.5% dividend. The beauty of high interest rates!

[JG]

Can you talk more in detail about doing this strategy but only with spreads. Selling Put spreads (credit spreads) until you lose money on the Put strategy then doing the opposite (selling Call spreads until you lose on the Call strategy...ditto...)

[napoleonmdusa]

Great video! Question: when I sell a stock, I have the choice of selecting FIFO (First In, First Out) or LIFO (Last In, First Out) but when a CC option is called away, I don't have that choice, so which does it use? (assuming I have 500 shares bought over several purchases at different prices and only having a CC call away 100 of those shares). For options, does it use "average cost basis" when called away or some default for options? With multiple Put assignments with a declining stock price, the average cost basis would be lower but when 100 shares get called away during a CC, the broker could be taking those 100 shares that were bought at the highest Put price (i.e. the oldest group or first batch) compared to a CC strike price that's less due to the lower average cost basis.

Is there a way to control which "batch" of Put assignments gets called away from a CC assignment so that you don't have a loss?

[jimvaillencourt]

Looking forward to the continuation video on the wheel strategy.

[ricarditopanamavids]

Loved the video, but I did not understand a thing, I need to study finances…😅…Could you keep up in bringing this kind of knowledge?, It is amazing!, even if I did not got it all, I’ll watch it several times, I’ll let you know if I have a question or a ton of them…Thank you for your effort…! Loved the info…!!!!💪🏽👏🙏👏👏👏

[jakehadix]

A covered call is not a bearish strategy. It will always have a positive delta, therefore, it is a bullish strategy.

[jerryrekowski]

I just want to say you are an amazing teacher, please keep showing us rookies all the tools and strategy`s to be confident and successful, in the wall street world :)