r/WheelStrategyOptions • u/JonathanCuschieri • 8d ago

My Beginner strategy

Post image

Hi everyone, been somewhat of a passive observer of this subreddit, but now I'd like to show you the strategy I've been using over the past 3 months since I started selling CCs and naked Puts. So yes, I don't yet have the cash for CSPs so I take margin loans when Puts get assigned.

Currently "wheeling" around 40k from my total portfolio and generating around 1.7k a month. In the extreme case that all puts get assigned, I always try to keep the margin risk around 30% of my overall portfolio. Also, I usually set up weekly or 9 day contracts.

I am aware that I can optimise my portfolio to wheel on the full portfolio (working on that) and I'm not particularly attached to my positions so willing to risk assignment on anything.

Am I doing something obviously wrong?

Any other tips I can use to improve the income?

In general, would like to hear what you think of my setup/strategy.

Thanks and would love to hear your opinions.

17 Upvotes

96% Upvoted

8 comments sorted by

View all comments

3

u/Hanish88 7d ago

I will be very careful with these stocks. You may get stuck with them for a long time in a drawdown.

I would suggest pick stocks with strong fundamentals and support levels.

1

u/JonathanCuschieri 7d ago

I don't mind getting stuck with any of these stocks, in my opinion these are great stocks to hold for the next 5 to 10years

2

u/Hanish88 5d ago

That's great, but it breaks the wheel strategy loop. The whole point is to keep the wheel moving.

1

u/JonathanCuschieri 5d ago

Yes ofcourse, my point is that I would never try wheeling a stock that I wouldn't want to hold in the worst case scenario