Running the Wheel — Turning Options Into Steady Income

We’ve spent the last few weeks covering the foundations — now it’s time to put it all together. The Wheel Strategy is simple, powerful, and repeatable. It’s not about predicting the market — it’s about discipline, consistency, and collecting premium week after week.

Start with a Cash-Secured Put (CSP)

Sell a put on a stock you’d actually be happy to own. Best times to sell: Mondays or Tuesdays (with Friday expirations) for max theta — excluding earnings weeks. Premiums are typically juicier on red days. If the stock finishes above your strike: the option expires worthless and you keep the full premium. Sell another CSP next week. If the stock finishes below your strike: you’re assigned 100 shares. That’s fine — that’s part of the plan.

Move to a Covered Call (CC)

Now that you own 100 shares, sell a call at a strike you’d be happy to sell your shares at. Mondays/Tuesdays are great. Premiums are usually higher on green days. If the stock finishes below your call strike: you keep your shares and premium. Sell another call next week. If it finishes above your strike: your shares get called away, but you made full profit (premium + gains up to the strike). This is MAX PROFIT.

Repeat the The Wheel Cycle

Shares called away? Back to puts. Puts expire worthless? Sell another one. Still holding shares? Keep selling calls. That’s the rhythm: sell puts, get shares, sell calls, repeat.

Key Reminders for Running the Wheel

Only use stocks you’re comfortable owning long-term. Stick to 100-share blocks so calls and puts line up. Assignment isn’t failure — it’s part of the process. Close positions early if profits are solid (>50% on CSPs, >85% on CCs). Always double-check that you’re selling options, not buying them.