What Is The Wheel Options Strategy?
The Wheel Strategy is a popular 2-step income strategy:
Sell a cash-secured put — you earn premium, and if the stock drops, you get assigned 100 shares
Sell a covered call — earn more premium while holding the shares
Repeat the cycle over and over to generate passive income on quality stocks.
📊 Example Setup
Sell Put on TSLA @ $180, Strike: $175
Assigned → Sell Covered Call at $190, Premium: $3.00
👉 Try the full Wheel strategy in the calculator → https://app.optionsincomecalculator.com/
🙋 FAQ
Q: What kind of stocks are good for the Wheel?
A: Stable, liquid stocks with high option volume like SPY, TSLA, AMD, or KO.
Q: Do I need a lot of cash to run the Wheel?
A: You need enough to buy 100 shares of the stock — often $2,000–$10,000 per round.
Q: Can the Wheel lose money?
A: Yes — especially if the stock drops hard after you sell the put. Use it on companies you’re happy to own.