01 · Starting point
Cash-Secured Puts
Learn how selling cash-secured puts works, how to choose a strike price and expiration, understand premium and collateral, and manage a position as the market moves.
Explore Cash-Secured Puts →Build your understanding, one strategy at a time
The Options Wheel is a repeatable options strategy, but successful execution involves more than simply selling puts and calls. Stock selection, position management and capital allocation all play an important role.
Use these guides to understand the mechanics, explore practical examples and learn about the risks involved at each stage. If you're new to options, start with the Beginner's Guide.
02 · The second stage
Covered Calls
Understand how covered calls work after acquiring shares, how to select a strike and expiration, collect premiums and manage the possibility of your shares being called away.
Explore Covered Calls →03 · Position management
Rolling Options
Explore how rolling works, when traders consider extending an option's expiration, rolling for a net credit and the risks of keeping a position open for longer.
Explore Rolling Options →04 · Portfolio management
Capital Allocation & Risk Management
Learn how to think about trading capital, cash reserves, position sizing, diversification and the difference between collateral committed and the actual risk of a position.
Explore Capital Allocation →05 · Before entering a trade
Stock Selection & Research
Explore company fundamentals, profitability, cash flow, technical analysis, analyst ratings and options liquidity when assessing potential Wheel candidates.
Explore Stock Selection →
New to the Options Wheel?
We recommend following the Beginner's Guide first. It explains how the three stages fit together before you explore each topic in greater depth. Read the Beginner's Guide →
Important risk information: Options trading involves risk and is not suitable for every investor. Cash-secured puts can result in substantial losses if the underlying shares fall in value. Covered calls limit some upside potential and do not eliminate the risk of owning shares. Educational content is not personal financial or investment advice.