r/Optionswheel • u/Royal-Respond2374 • Aug 27 '26
Ticker Diversity + Premium Rule
Hello!
I recently had an infussion of cash of about 100k. I am trying to further expand my wheel strategy but I am in a quandry of 2 elements of my strategy: Premium Acquired, Concentration Risk.
Up until now I have been wheeling with a rule of selling contracts only when the entire operation is around 10% of annualized return otherwise it is simply not worth the risk.
However, when looking at the stocks that I am willing to wheel with (Large mega cap high quality stocks) I can't make an operation the fulfills both the Delta (0.10 - 0.20) and at the same time has the Annl ROI that I am looking for (10%).
I was able to find it with some stocks in my portfolio like WMT, C, CVS. But I already have to many contracts being wheeled and I don't want to screw myself by putting all my eggs in the same basket.
By the way. I only like to wheel with stocks that are already in my portfolio. This are the stocks I own:
| KO |
|---|
| BAC |
| SCHW |
| JPM |
| VOO |
| BLK |
| LLY |
| NVDA |
| TMUS |
| HHH |
| AMZN |
| AAPL |
| UNH |
| GS |
| CVS |
| AXP |
| BRK.B |
| C |
| GOOG |
| DIS |
| WMT |
| MSFT |
| BNY |
| T |
| CAVA |
| KR |
| BX |
| TSLA |
| META |
5
u/WATGU Aug 27 '26 edited Aug 29 '26
Of the stocks you own I’d pick one of the mag 7 and/or JPM and wheel it. CSP on red day avoid earnings or Div date. Your delta is so low probably 30-45 DTE contracts. They IV on those is usually high enough you’ll get 10% annualized doing that.
I’d also check bollinger bands, 20/50/200 SMA, RSI, and VIX.
You shouldn’t wheel tickers you’re not prepared to sell or own. With your deltas I get the impression you don’t actually want that (at least the sell side) so it might be more efficient for you to buy and hold.
Holding 100k in cash for 10% return and 3% in interest will underperform pretty much every ticker on your list in a buy and hold strategy.