The Wheel Strategy — Selling Puts and Covered Calls for Consistent Income
r/thetagangoptionsMedium-term (30-45 DTE cycles)by reddit_community
Wheel strategy: sell CSPs, if assigned sell CCs. Target 1-2% monthly. 30-45 DTE, 0.30 delta. Best on stable dividend stocks. Consistent income approach.
ENTRY RULES
Select stock you would be happy to own | Sell cash-secured put at 0.30 delta, 30-45 DTE | Stock should have good fundamentals and pay dividends | Only use stocks with liquid options (bid-ask spread < $0.10)
EXIT RULES
Close put at 50% profit or let it expire/assign | If assigned, immediately sell covered call above cost basis at 0.30 delta | Close CC at 50% profit or let assign | Never sell CC below cost basis
INDICATORS
DeltaDTEIV RankBid-Ask Spread
ORIGINAL POST
567
r/thetagangposted by reddit_community
The Wheel Strategy — Selling Puts and Covered Calls for Consistent Income
The Wheel strategy: sell cash-secured puts on stocks you want to own at a lower price. If assigned, sell covered calls above your cost basis. Collect premium on both sides. Works best on stable, dividend-paying stocks or ETFs. Target 1-2% monthly return on capital. Pick 30-45 DTE options at 0.30 delta for puts, 0.30 delta for calls. Consistent income machine.
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