What is option Wheel Strategy?

The option wheel strategy combines selling options and owning stock in an attempt to maximize profit. Keep reading to learn more about the wheel strategy and how to become successful at trading options . How do you use a wheel strategy? The wheel strategy uses a combination of trades to collect premium.

Which stocks can be used for the Wheel Strategy?

Cheap stocks that can be used for the wheel strategy include: Apple " (AAPL"), PayPal ("PYPL"), Blackstone ("BX"), Disney ("DIS"), Starbucks ("SBUX"), and JP Morgan ("JPM") - all of these stocks are trading below $200 as of January 17, 2023. Running the wheel strategy and trading indices or ETFs may be better due to reduced volatility.

Should I trade the powerx strategy or the Wheel Strategy?

I trade the PowerX Strategy and The Wheel Strategy. The PowerX Strategy is perfect for a trending market, but the markets right now, are far from trending. They are super choppy going up and down, so, therefore, right now I’m dedicating all of my money in the account to the Wheel Strategy.

Is the wheel strategy profitable?

There are multiple possible outcomes when it comes to the wheel strategy. While the wheel strategy can be profitable, it is important to recognize the risks associated with selling OTM puts and getting assigned stock. One possible outcome it that you're assigned stock and the stock continues to fall.