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The Wheel Strategy
Understand how cash-secured puts and covered calls fit together, how the cycle works and where the risks arise.
Understand the strategy →Independent options education
Learn the Wheel.
Master the Process.
Understand the Options Wheel strategy through straightforward education, practical examples and tools designed to help you make more informed trading decisions.
Real strategies. Practical education. Community insights.
THE OPTIONS WHEEL — AT A GLANCE
Cash-secured putSell a put on a stock you are willing to own
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Stock assignmentIf assigned, you acquire the shares
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Covered callSell calls against shares you own
The cycle may repeat, or shares may be called away. Outcomes are never guaranteed.
Clear explanations
Practical examples
Risk-aware education
Independent learning
Build your understanding
Start with the fundamentals
Whether you are new to options or developing your approach, explore the key concepts behind the Wheel.
Trade management
Managing Positions
Explore expirations, strike selection, rolling decisions, assignment and managing changing market conditions.
Explore practical topics →Stock selection
Research Before You Trade
Learn about company fundamentals, liquidity, volatility and the importance of choosing stocks carefully.
Explore stock research →How the Wheel works
1
Sell a cash-secured putReceive premium and take on an obligation to buy shares at the strike price if assigned.
2
Accept or manage assignmentIf shares are assigned, you become a shareholder. Assignment is not always avoidable.
3
Sell a covered callSell a call against your shares, accepting the possibility they may be called away.
4
Continue or reassessIf shares are called away, you can reassess whether to begin another put cycle.
A practical framework
A strategy is more than collecting premiums.
The Wheel involves obligations, stock ownership and decisions that change as markets move. Understanding the underlying company and the potential downside is just as important as understanding the premium.
Our guides focus on the mechanics, trade-offs and practical considerations at every stage of the process.
Explore the learning resources →Free interactive tool
Put the numbers into perspective.
Explore potential trade outcomes with our Options Wheel Calculator. Calculate cash-secured put collateral, premium income, effective purchase prices and covered call returns.
The OptionsWheeler approach
Learn the process. Understand the risks.
OptionsWheeler is an independent educational resource. Our aim is to make the Options Wheel easier to understand through clear explanations, practical learning and useful tools — without promising easy or guaranteed returns.
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Learn how cash-secured puts, covered calls and rolling options work — with practical examples to help you understand the process.
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