Mastering the Wheel

A Comprehensive Guide to Options Trading

The Complete Strategy Manual

TABLE OF CONTENTS

PART I

The Foundations of the Wheel

Chapter 1

The Basics of the Wheel Strategy

1

Explains what the wheel strategy is, its core components (cash-secured puts and covered calls), and the fundamental goal of generating consistent income.

Chapter 2

Understanding Options for the Wheel

15

Covers the necessary options trading fundamentals, such as puts, calls, strike prices, expiration dates, premiums, and the concept of time decay.

Chapter 3

The Wheel in Motion—Step by Step

32

Provides a detailed, visual walkthrough of the entire wheel cycle, from selling the first cash-secured put to getting assigned and selling covered calls.

PART II

Building Your Wheel: Stock Selection and Setup

Chapter 4

Finding the Right Stocks for the Wheel

51

Details how to select suitable underlying assets, focusing on fundamentally strong companies, ETFs, or even commodities and crypto, that you would be comfortable owning long-term.

Chapter 5

Key Metrics for Success

68

Explores important metrics like liquidity, volatility, and implied volatility (IV) and how they influence the premiums collected and risk.

Chapter 6

A Checklist for Starting Your First Wheel Trade

84

Provides a practical, step-by-step checklist to guide beginners through their initial trades, including capital requirements and position sizing.

PART III

Mastering the Mechanics

Chapter 7

The Cash-Secured Put Phase

99

Deep dives into selling puts, including choosing the right strike price (delta) and expiration date (e.g., 30–45 DTE) to maximize premium and manage risk.

Chapter 8

The Covered Call Phase

118

Explains how to sell covered calls after assignment, including strategies for optimizing strike price and expiration date to generate additional income.

Chapter 9

Adjustments and Risk Management

137

Covers advanced tactics for adjusting positions when a trade moves against you, such as rolling options and managing a stock that has fallen significantly.

PART IV

Strategic Expansion and Optimization

Chapter 10

Portfolio Management with the Wheel

156

Discusses how to scale your wheel strategy, manage multiple positions, and use the income generated to compound returns.

Chapter 11

Comparing the Wheel to Other Strategies

179

Puts the wheel into context by comparing it to other income strategies, such as the covered strangle, to highlight its strengths and limitations.

Chapter 12

Advanced Wheel Techniques

204

Explores more sophisticated approaches, such as using weekly options for higher premium collection or incorporating other strategies for further diversification.

PART V

Long-Term Growth and Mindset

Chapter 13

Risk Management and Mindset

233

Focuses on developing the right mindset for options trading, emphasizing patience, discipline, and managing the psychological aspects of the strategy.

Chapter 14

The Wheel as a Long-Term Strategy

262

Discusses the role of the wheel in a broader long-term investment plan, balancing income generation with capital appreciation.

Chapter 15

Putting It All Together—Case Studies

289

Includes real-world case studies to illustrate the wheel strategy in different market conditions and with different types of underlying assets.

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