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Never-Ending Wheel Strategy: A Step-by-Step Guide to Generating Income and Share Accumulation The Wheel strategy is a popular options trading approach that allows investors to generate income while accumulating shares of quality stocks at a discount. It’s an excellent strategy for both beginners and experienced traders who want to combine options income with long-term stock ownership. I’m going to present a modified version where a stock position is held indefinitely and the options income is used in a multitude ways. Here’s how it works. Step 1: Using a Synthetic Short Put (Buy/Write Strategy) Instead of selling a cash-secured put, an...

The Wheel Options Strategy: A Step-by-Step Guide to Generating Income The Wheel strategy is a popular options trading approach that allows investors to generate income while accumulating shares of quality stocks at a discount. It’s an excellent strategy for both beginners and experienced traders who want to combine options income with long-term stock ownership. The wheel strategy is ideal for investors who can afford to buy 200 shares of stock. Here’s how it works. Phase 0: Selling Cash-Secured Puts The first step in the Wheel strategy is selling cash-secured put options on a stock you’re willing to own. A put...