The Wheel: Theta Gang Strategy #3 // r/wallstreetbets



the-wheel #options #robinhood The Wheel is a winner’s strategy for building wealth trading options. It leverages the power of cash-covered put and covered …

25 thoughts on “The Wheel: Theta Gang Strategy #3 // r/wallstreetbets”

  1. I just wanted to come back here and leave a comment after seeing this a couple months ago… I’ve been selling covered calls for a while now, didn’t think about selling cash covered puts.

    Long story short I’ve been doing the wheel now and my returns are boosted and this strategy is paying off really well. I keep reinvesting my earnings into new positions, and am seeing awesome growth. Just wanted to give a shout out on the video and recommend this method to people who have patience to see earnings grow over time!

  2. Its a good strategy until it doesnt work. Your CSP hits but the underlying tanks further down and you Bag hold forever

  3. Why wait until expiration? If the max profit is the premium collected, why not just close out of the position as soon as the stock price is close enough to the strike price? That way you get to repeat the strategy faster, aka collect more premium faster right?

  4. Holy shit, this is exactly what I'm doing and I had no idea it had a name and was a popular strategy… I'm sitting here thinking that I invented the wheel, lmao

  5. These theta gang videos are definitely it definitely making some making with these and definitely needed it too! Thank you for the videos!

  6. That wheel Strategy is great you have the capital to make it happen learning a lot from the theta gang strategies.

  7. I've made 150% in 9 months using this strat. Theta Gang is the real deal, y'all. Slow AF, but after 40k, things start to speed up.

  8. im confused if i own the stock and i sell covered calls, it lowers my cost basis if the stock drops but if it pops, the stock is now at a higher price, and so is the option, so wouldnt i be losing money as a result?

  9. Is there a specific reason you need to avoid losses on individual sales (selling covered calls above your basis)? Or is this just sunken cost fallacy/bag holding? In theory you should ignore your basis and do whatever makes the most money, unless I'm missing something. And limiting your covered call strike price to above your basis could result in overly OTM covered calls which in turns means less premium collected.

  10. Why the F would theta gang let their options expire? Bad advice. I'm not collecting a penny a day for 3 weeks when before that I'm getting 60 cents a day at the steepest part of the decay curve.

  11. Yo Mikey! How you doing boss???
    Question and please correct me if im wrong,
    I sold put on FCEL $11strike for $42 premium
    It expires this friday. Lets say FCEL goes down below $11 im obligated to buy 100 shares.
    To do a wheel I need to sell covered call above the $11 to make more money from premium is that correct?? So im selling it $1 dollar more per share from when i sold out and got assigned.
    Thank you in advance Mikey!!!
    Thank you for all the great videos!

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