Does the Wheel Work in Bear Markets?

it should be this: https://youtu.be/LyPwMwAe7Es

Using the $NBIS/$NBIL wheel as a real example of how this strategy works in volatile or even bearish markets. A lot of people think stocks either go straight up or straight down, but in reality they move in cycles. That’s where the wheel shines — if you stay patient and manage your positions well.

Real Examples of The Wheel in Bear Markets — NBIS

Originally got assigned shares around $115 and kept lowering cost basis by consistently selling options, pulling in roughly 1-2% per cycle. The stock dropped hard (around 50%), but because of high implied volatility, premiums stayed strong. This effectively lowered cost basis over a few months to around $100-105. As it recovered, sold covered calls and rolled when needed. Eventually, a big news catalyst caused a gap up past the strike, and shares were called away at $105.

After Being Called Away

Sold cash-secured puts at $105 to re-enter, collecting more premium. The stock drifted back down toward that level, meaning potential re-assignment right where I exited. Also used NBIL (2x ETF) as a temporary upside hedge and took profits during the spike.

Key Takeaways from Running the Wheel in Bear Markets

High IV stocks can generate strong income, but require conviction. The wheel works best when paired with a long-term view on the stock. Getting shares called away isn’t a loss if it fits your plan. Re-entering via puts lets you stay systematic instead of emotional. The wheel isn’t just for bullish markets. If the stock is moving, there’s opportunity. Patience, strike selection, and consistency matter more than direction.