Wheel Strategy Guide

Review the options wheel through cash-secured puts, stock assignment, covered calls and total-position risk.

Wheel Strategy Guide is a 4-page PDF field guide. Cash-secured puts, covered calls, assignment and position risk.

• The cycle has two risks: Short puts carry purchase obligations; covered calls retain stock downside and cap upside.

• Premium is not yield: Credits arrive before the final economic result and should not be annualized without context.

• Assignment changes the phase: The process must explicitly handle cost basis, taxes, dividends and concentration.

• Skipping is a position: When volatility, valuation or catalysts fail the rules, no trade may be the correct cycle.

Action checklist: Define eligible underlyings and size caps; Reserve cash for every short put; Set minimum liquidity rules; Log adjusted economic cost basis; Decide when not to sell a call; Review the complete cycle after exit.

Educational only. Repeated option premium does not guarantee income or profit.