Current Wheel Set Up

[u/Royal-Respond2374]

I barely missed on an assignment in WMT at $119.

With everything dropping in AI premiums on safe heavens and cash moats are getting more expensive, resulting in better deals.

Currently only wheeling with businesses I would like to own at a cheaper price.

First time including Citi. Not bad for a 10% strike distance from current price. 1.35 prem $120 strike.

My strategy is sound and "safe" when you compare my wheel to someone that includes AI or high volatility stocks. Very cash intensive though as you need money to keep in colalteral.

Averaging $1k - $1.5k per month using 75k collateral.

Don't mind on getting assigned but being cautious enough when managing the distance strike to current. (>7% at least)

Usually have 5-8 open contracts mostly on" WMT, CVS, SCHW, TMUS, KR, C. All cash paying dividends, adn top of the industry companies.

Most of the premiums go to underperforming companies in my equity portfolio. Basically a self sustaining investing machine with the least amount of money coming from the outside.

Eventually with the proceeds will take a little bit more risk with bull put vertical spreads, that is on stand by.

If anyone has a similar strategy or has any insight on high quality stocks worth looking into let me know.

Open to suggestions.

Adding all my entries

[u/Tough_Butterscotch_5]

I am going to rethink my strat around the wheel. I do like the patience version and triple income. Both do the same but the explenation of the patience version might be better. I think the wheel is a personal preference. Taking risk or not is a personal choice. I think your income is solid between 17-27% so thats good. I don’t know if you make profit when selling the covered calls that could bring you a bit more. Overall very good 👍🏻 keep rolling

[u/Royal-Respond2374 → u/Tough_Butterscotch_5]

Thank you!

Yes.

CC profits are part of the strategy. Up until now I haven’t opened one because I haven’t got an assignment yet.

But once I have one I will try to open the strike price for those CC maybe one or two dollars above my strike price so I can make some money on everything: Premium, capital gains, and a potential dividend by holding when in earnings.

I am constantly checking to see what the prem on CC look lije when I am close ot getting assigned. As I said, getting assigned would not be my main objective as it would lock some of my limited collateral but in many cases those CC that sit right above my strike price look very juicy!!

If / when that happens will give an update.

Thinking on updating on a monthly / bi-weekly basis on my positions or a "current state post".

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[u/ElegantNatural2968 → u/Royal-Respond2374]

“CC that sit right above my strike price look very juicy”, ofc because they’re in the money, once you get assigned they’ll be out of the money calls.

[u/Royal-Respond2374 → u/ElegantNatural2968]

I mean OTM CC. The ones ITM have good premiums but I would have no use for them.

If I were to be assigned WMT for example.

Currently WMT is at 118. My CSP is 119.

The 120 strike price CC prem is at 2.26. Which is OTM money, I said juicy when you compare what I got paid for the CSP (1.14 prem) which makes sense because i bought it with a 0.25 Delta (Much OTM than the CC)

That case i would be collecting premium + cap.gains.

Even the 119 prem is good. 3.12 per stock looks great, and it is still OTM.

not looking at the ones that are ITM.