The "Wheel" Options Strategy - A Step By Step Walkthrough Of This Powerful Proven Trading Strategies

The Wheel Options Strategy - Proven Trading Strategies
This strategy is like “getting paid while you wait to buy a stock”. This is also one of the strategies known to be used by Warren Buffett.
This strategy is used on a stock that you're bullish on. It is used to profit on the downward movement of a stock, as the stock approaches your entry point.
For instance, let’s say that you’re wanting to buy shares of a particular stock.
However, this stock is currently trading much higher than your entry point.
Typically you would wait until the stock price moves lower before loading up on shares.
For this example, we’re going to use the stock ticker SQ. In this scenario, SQ is currently trading at $121.5 and you want to purchase the stock when it hits $100.
You’re bullish on this stock and you expect the price to go up, but you’re looking for the right entry point.
Because you want to buy this stock at $100, you sell a put option contract at the $100 strike price and receive a credit of $3.50, or $350. In this example, we execute the trade and the margin required for this position is only $1,000. Without a margin, the cost would be $10,000.
If the put option contract expires and the strike price is still above $100, you get to keep the $350. This would be a return of 3.5% in 35 days, which is the length of the contract expiration.
The stock is STILL above your entry point, but now you've earned 3.5%
Let’s say you repeat the process again, and you sell another put option contract at the $100 strike price. BUT the strike falls below $100 at expiration. If the strike price fell to $90 at expiration. You would be assigned 100 shares of SQ stock at $100 each.
Since the strike price is currently at $90, and you purchased the shares at $100, there is an unrealized loss of $1,000.
However, In this same transaction, you also made $350 in premium. Because you're longterm bullish on these shares, you do not sell them at $90 so there would be no loss realized. If you chose to sell them at $90, there would be a loss of $650. ($1,000-$350=$650)
Since you're the proud owner of SQ shares that you've purchased for $100, you can now sell call options against them!
Let’s say that you sell a $110 call option for 35 days out, with an expiration date of SEP 18. The premium received for selling this call option contract is $500.
As the expiration date approaches, the strike price moves down to $80. This would be an unrealized loss of $2,000 in the values of the shares, but you still earned a $500 premium. Because you're long-term bullish on these shares, you do not sell them. There is no realized loss, and you earned $500 in premium.
Up to this point, you were able to earn more than an 8.5% return, AND you purchased you still own the stock. If the stock trades sideways, and you still a call option contract, you STILL win with this strategy. The stock didn't increase in value, but you earned premium by selling call options.
If you sold a $110 call option, and the strike price moved up to $120, you earn $1,000 from the shares and the premium from the option contract.
Then you start the cycle all over again, because "the wagon wheel keeps turning"
Key Points:
1.) A powerful strategy that can deliver 30% per year, rather "safely". In this example, we earned 8.5% in 70 days which is more than 43% per year.
2.) It's important you choose a stock that is trending positive.
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[@tpsu129]

20 * 100 = 2,000

[@JamesLee-zr1er]

Also he sold a $3.2 put option and earned $350. Pulled $30 from thin air.

[@IamSwagMikel]

😂😂

[@Simpleneazy]

He should have edited

[@tyeshi8225]

I am so grateful for all the videos related to trading. I used to pay $3000 in rent for 1 bedroom apt here in nyc. I showed the trading videos to my landlord and he has now lost all his money, had to sell his building and his wife gave him a divorce. But I am saving $1500 every month in rent as he is my room mate now. I am really happy and grateful for saving $1500 every month.

[@waltretlaw148]

Funny

[@ticktock2383]

You have to study hard and stary small. Your former landlord is a dunce.

[@supercruchynoodle]

😂

[@goathouse7936]

😂😂😂😂😂😂

[@switchoff64]

Lmao

[@ivanxyz1]

Good video. I have been trading the wheel strategy for a while now. It is a money faucet. Stocks and options together make the best business model. No tenants or employees to worry about.

[@rockwelltradingservices]

That is awesome! .

[@Barrio956]

yooo how r u doing man u still wheeling life? I wanna get there ugh

[@couloir1]

Down side of just trading his no tax benefits that real estate investing can give you. It would be beneficial to do both. If you don't want to deal with tenants then hire a property manager.

[@76ers]

Your style of teaching is exactly the way I like to be taught! Excellent work Markus, keep it up!

[@rockwelltradingservices]

Thank you! :)

[@johnmcclure5383]

Very interesting!

[@markus5000]

@@rockwelltradingservices what happened with your $RIDE trade 🤣🤣🤣🤣🤣

[@nicolapansini5656]

@@markus5000 trash 🗑️

[@grahamgraham4263]

Finally a teacher that anticipates the audiences questions and explains everything clearly using visual, audio and mental stimulation. I'm learning faster from Markus than any other teacher. Thank you!

[@richg1450]

I've been doing this on my own for over a year without realizing I was "wheeling". Now that I'm retired I've replaced my previous income through this strategy. It is VERY IMPORTANT to choose good stocks.

[@kirkyrussell]

You basically reinvented the wheel 😄

[@ManicTulip76]

This is the most comprehensive, entertaining, and simplest way to understand options. I have my series 7 and struggled to understand options for the longest time. Thank you!

[@rockwelltradingservices]

Awesome! Thank you for watching, David! ;)

[@ericm1430]

The most beautiful improper english ive ever listened too. Thanks for the help brother.

[@rockwelltradingservices]

Lol. I hope this helps.

[@nupid1971]

Good review. I have been using this strategy on an “investment” which I should have cut. It works. Also, my six year old really enjoyed this video, he watched the whole thing with me and commented on the profit amount and was asking me questions about options. I was pleased and surprised by his interest.

[@rockwelltradingservices]

Hi Roman, that's awesome that your six-year old is already interested in trading. My kids started trading on a simulator when they were 10 years old. Can't start them early enough! 😀👍

[@kiwilimew]

Just wanted to say I agree with others that your way of teaching is awesome!!! I feel like I’m learning so much!!!

[@rockwelltradingservices]

Thank you! :)

[@Arkstellar]

This is one of the most understandable, digestible expansions I've seen. Thanks.

[@rockwelltradingservices]

Hi Staticks, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍

[@tito382]

Hey Markus, YES DO THE COURSE! Hugo here - your friend from "Compro"

[@hooktonfonniks]

I've been doing this without knowing it has a name! Once I learned about calls and puts, I decided this is how I wanted to use the options.

[@rockwelltradingservices]

Awesome! Thank you for watching! :)

[@lindsayjohnston7465]

I've watched a few of these instructional videos on puts and calls this is the only one that explains it so I actually understand how it works sounds like a great strategy with little risk

[@rockwelltradingservices]

Awesome! :) Thank you for watching.

[@ataleofgames5555]

What option date you open for the wheel strategy? A month out or week out for sell put?

[@graceandpanic9281]

This is by far the best explanation

[@rockwelltradingservices]

Thank you for watching! Please connect with us via our social media channels for more free resources. Facebook- facebook.com/markusheitkoetter Instagram- instagram.com/markusheitkoetter_/

[@bowserwowser4049]

Finally! someone I can understand! Observational learning is the way I absorb (and hopefully retain) knowledge quickly. You're a godsend to all the new and aspiring investors out there. Keep it up!

[@rockwelltradingservices]

Hi Jay, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍

[@weakpig]

So instead of 35 days expiry, can we pick a shorter expiration, like 7 days? Then we could earn more premium right??

[@BenN98]

Yep, but the premium would be a lot lower.

[@Mary-cs1jj]

I'm interested and I like the wheel strategy. Thank you

[@rockwelltradingservices]

Hi! Please reach out to us at Facebook facebook.com/markusheitkoetter/ or Instagram instagram.com/markusheitkoetter_/

[@ArtificialNightmares]

This explanation on the wheel is so clear and simple. Thanks for the breakdown!

[@rockwelltradingservices]

😊 You are welcome! I am glad that this helps!

[@jonathanchesson5334]

I really appreciate your demeanor and clear explanations. It's clear you love what you do, and I've learned a lot from your channel

[@rockwelltradingservices]

Thank you! :)

[@socawarrior1263]

I’ve been trying to learn this strategy from the trading with Henry channel and they guy makes it so complicated but thanks for this simple explanation

[@rockwelltradingservices]

Awesome! 😊

[@Jeffrey-817]

Man, I keep stumbling back on these and learn so much.

[@rockwelltradingservices]

Awesome! Thank you for watching! :)

[@gunnarrohrscheib4660]

Thank you for explaining us this strategy 👏🏻 one question if I sell a put and before the expiration comes down to the price you are selling. Do I have to wait until the expiration or I can buy it as soon it pass through? Hope you understand my question and thanks again for your videos

[@shelbysmom]

When did you go from a 30 day out option to a weekly option and why? Thank you. Love your video's and books.

[@rockwelltradingservices]

Thank you for your kind words and for following my work! I appreciate that you're enjoying my videos and books. To answer your question, I shifted from trading 30-day-out options to weekly options after recognizing a few key advantages. Weekly options give me more flexibility, allowing me to capitalize on more frequent opportunities. Instead of waiting a whole month to see the outcome, I can adjust my strategy every week, which is great for fine-tuning and responding to the market’s moves more quickly. The real turning point for me came as I noticed that the shorter expiration periods allowed me to manage risk more actively and take advantage of smaller, quicker market moves. This shift was all about maximizing returns and staying agile in a fast-moving market. It's also in line with my philosophy of simplifying trading strategies and making them more efficient, which is at the core of Rockwell Trading. Hope this helps, and feel free to reach out if you have more questions!

[@shelbysmom]

@@rockwelltradingservices thank you for the quick answer. I kinda figured that's what you thought. I used to follow another person on youtube who did the 3 week out options and I had a hard time waiting 3 weeks for the outcome. I have been following you for a few months and find that the weekly options suit me a lot better. I like the fact that I can make $50 to $200 per week without having to wait so long. Thank you!!!

[@options888]

Hey how is your exit setup for option selling? Like when do you take profit and cut loss, in terms of percentage thanks

[@rockwelltradingservices]

Great question. I made a video in which I explain it: kzbin.info/www/bejne/jWjUkJ96aqmLpMk Does this help?

[@erikahalabi4379]

Oh God, finally somebody that explain perfectly. Thannk you so mucho. Did you launch the course?

[@rockwelltradingservices]

I have a course about options here www.rockwelltrading.com/free/options-101-v1/ and you can also get the book about The Wheel Options Strategy here www.rockwelltrading.com/the-wheel-options-strategy-book/

[@TonyChin-k5j]

thanks.. very clear to me now

[@rockwelltradingservices]

Awesome!

[@stevelee7781]

Excellent ! I use the wheel and in one year received 130k on a 200k ira investment...

[@rockwelltradingservices]

That is cool! 😉

[@MeiNg-cs5dy]

Nice video by I still need time to digest. Will repeat watching

[@rockwelltradingservices]

Yes, repetition is the mother of learning. ;)

[@lucaecari2928]

Well explained, although since we are speaking plain vanilla here it would have been useful to mention that if you’re assigned the 90 C you need to have 9’000$ in your account so you are effectively -9k$ in your cash position.

[@danavram8437]

not necessarily; you can close the position and roll the puts in time to collect more premium that can offset your loss; there are ways to minimize assignment risk

[@petermaharajh2088]

The problem is that if there is a panic you could lose a fortune. The price might not give you the chance to get out. I’m so confused how people think this is safe in any way. Buying options sets your potential loss but selling options is insane. This strategy has wiped out way too many hedge funds. I just ran a bunch of different scenarios and found my 10 grand was at risk to make 140 dollars. Not worth the risk in my opinion. Buffet must be pretty confident in the stocks he is trading.

[@robertgray9981]

Great great video! ❤ you explain so thoroughly. Slow enough for beginners like me!

[@rockwelltradingservices]

Thank you for watching! ;)

[@CarinaBalderston]

Incredible work, brother! Hope all guys who have problems with money can solve it now🌎

[@rockwelltradingservices]

Amen! ;)

[@bernardyeo9077]

Markus is an excellent teacher. He is very systematic. He makes a difficult subject so easy to understand. Thank you Markus.

[@rockwelltradingservices]

Thank you for the wonderful feedback! 😊

[@kkaisen]

Does this work with LEAPS instead of Margin?

[@pacoenriquez3183]

Awesome, I had never heard of this strategy.

[@rockwelltradingservices]

Now you know. ;)

[@honchoonong7071]

I have been looking for this info. EVERYWHERE. So glad I found your channel. Thanks for the sharing.

[@GiovanniCastillo-c8v]

WOW this is a wonderful strategy

[@rockwelltradingservices]

Thank you! ;)

[@pinkusoli]

Very beautifully explained

[@rockwelltradingservices]

Thank you!

[@luvmusicusa]

Fantastic video, than you for the good examples

[@rockwelltradingservices]

You are welcome. I am glad that you like it.

[@JK-vb9ps]

the wheel strategy will be hard to execute if the underlying drops significantly because the least you should sell the covered call is at the price that you bought the underlying at.

[@rahuljadhav4941]

Hi… Can we sell covered call options for far off the time…@ when it will get assigned… Thanks

[@AGMGH]

You talked about margin, But you didin't account the interest for margins? So, only if the stock is allocated i need to pay margin interest???

[@foxhound4218]

Great content. New to this. Want to ask if there is a senario that we would lose money?

[@jasonmurray4714]

Yes. You get assigned and the stock continues to go down. You can't sell the CALLS because there is not enough premium. And while you can fly a rescue mission, the stock keeps going down. Then you get a margin call from your trader and you have to sell your position at a loss. Marcus's approach is to simply avoid that, which isn't really risk management. Look I've been a Rockwell customer for years, and this is a major weakness of this trading strategy and the way they present it. Just be aware of it.

[@AarrenDieok]

You teaching is so engaging easy to understand, I’m on the wheel after learning from you 🙏👍

[@rockwelltradingservices]

Awesome! Thank you for such kind feedback. 😉

[@allan-6604]

Great video ! What software do you use for these annotations please ?

[@rockwelltradingservices]

I am just using notes in my ipad.

[@contrarian_I]

What does it mean by 1000$ in margin? Does it mean that they will loan you that amount of money or will that just being down your total payment if your assigned to 1000

[@rockwelltradingservices]

Yes, it means that they loan you $1,000.

[@tisurmaster]

so, say I like a stock and don't mind owning it... should I sell puts?

[@justchilling_.]

I've been doing this too, love it. I hope my wheel gets bigger. Question. So you collect the credit aka premium up front. You then see a open position with the contract. You then see the contract fluctuate with the Market. Does that affect your premium you got paid. Or does it just effect the price you might pay or not pay to buy to close before expiration if you want?

[@rockwelltradingservices]

Just keep learning and manage your risk. What tool are you using to trade the wheel?

[@davidreuter9320]

Like your no BS approach! 👍

[@rockwelltradingservices]

Thank you, David.

[@yhnmk1]

Thanks Markus, I started my wheel account 2 months ago and am already up 38%. I have been selling weekly contracts; thanks for the video it's helped me a lot!

[@rockwelltradingservices]

Yeehaw! 😀😀 That's fun!

[@kavid8120]

How much do you profit a week from this? I want to start doing the same. Kind of new

[@yhnmk1]

@@kavid8120 It's all in percentages. In general, the more volatile the stock the more premium you will you receive. Important to wheel stocks that you like and not stocks that just pay you high premiums.

[@vishalsinghal7234]

If we have not margin account, then how much safe trade we tack. And how many lot we trade how we know.

[@Burcayozturk]

it is awesome video Markus, even somone who dont knows anything about wheel (actually it is me :)) can understand what it is. I only wonder after 70 day if stock is below 80 dollar so what you do ? just waiting stock to go up above 100dollars or dont youopen new option ?

[@MrUkun]

I have learned a lot from your video, good strategy, thank you so much Markus, Keep it up!!

[@rockwelltradingservices]

Awesome! Thank you for watching! :)

[@udarpavarota396]

So what you are saying is that I can use the margin to sell puts? And if I get assigned and borrowed that money, then what?

[@cdh79]

you need to have the money to eventually buy the 100 stocks if you're assigned.. so don't do it if you don't have the money to actually buy 100 shares (which you should have for this strategy, as your initial plan was to buy 100 shares in the first place).. don't sell naked puts, where you don't have the money to pay for the shares that you want, or you'll have a bad day when you get assigned.. the margin account just requires less margin (so you could do other trades in the meantime) and don't need the full amount at the time of placing the order..

[@backiasaravanan]

for closing strike 100 put option we need to pay out 650 dollars or should sell the stock ,how without closing the put option or selling stock we can keep 650 dollars as unrealized ..makes no sense to me ..kindly reply

[@michaeld3828]

I loved this video. You provide clarity. I actually understood everything you said.

[@rockwelltradingservices]

Hi Michael, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍

[@kevincraig2538]

Great Stuff - Thank you Mr. Heitkoetter. Question(s): What about the fact that you only have $1000 in your margin account? How did you buy 100 shares at $90? Also, when you implemented "The Wheel", i.e. where you sell calls. You said to sell calls at ~$20 away from the price of $90. However, you then went to the call chain, looked 30 days out, and sold the $140 strike (I assume that was because $140 was $20 above the current price of $120). Incidentally, the price for the $140 strike was $5.20, not $5.00. At any rate, couldn't you really have sold the $110 calls for $15.49, or can you not sell calls below the current price?

[@TimCBuilders]

No response on this point, huh? Did this guy go away?

[@dogfacedponysoldier87]

Thank you Markus for your educational vids ! You rock !

[@rockwelltradingservices]

😊 You are welcome! I am glad that this helps!

[@duyle4555]

Do you know which broker does not require a minimum for selling cash secured puts? I know Robinhood does not require. Any other ones? Tradestation requires $50,0000 to sell cash secured puts. Any other broker does not require anything?

[@BlackAdam2784]

Best video, by far, explaining the Wheel Strategy. By *far. SUBSCRIBING.

[@rockwelltradingservices]

Awesome! ;) Thank you for watching.

[@luismanuelmendoza789]

What do you think about the pattern day trading rules?? Is a margin account still better?? Or should I keep my cash account?

[@rockwelltradingservices]

Hi Luis, great question. I actually did a video on that: kzbin.info/www/bejne/h6uxo6uZp5hma8U Does this help? 👍

[@luismanuelmendoza789]

@@rockwelltradingservices It helps a lot!! Thanks 🙏

[@belsymcdonald6596]

Hello your teaching style is just what I need. Thank you. I am interested in the upcoming course.

[@rockwelltradingservices]

😊 You are welcome! I am glad that this helps!

[@johnyoung110]

I'm subscribed. Love your teaching style.

[@rockwelltradingservices]

Thank you! :)

[@chase3rd1]

Hey Markus, love your videos! Hope you don't mind me offering two points of constructive criticism: 1). There's several typos in the video. For one, you said the put was sold for a premium of $3.20, but you wrote that the profit would be $350. Luckily I caught that it was a typo but that could throw some newbies off. Also you wrote Open &P but I think you meant Open P&L. That one confused me...I was trying to figure it out until you wrote Open P&L in the next scenario. (Side note: never actually heard that term before...I've only heard unrealized gains/losses or paper gains/losses, so that one was new to me). 2. If you're using a margin account don't you have to pay margin interest? So that would cut into your profits right? I haven't actually used a margin account personally so I don't know for sure...I thought it costed you something though. That would be another super helpful bit of info and would be an important consideration. All in all it was a super informative video. I started dipping my toes into the wheel strategy last week, so I'm still doing research daily (but I have been a long term investor for about 10 years). Thanks for the video!!

[@bernardwu8977]

Thank you for sharing, simple, detail, precise and easy to understand

[@rockwelltradingservices]

😊 You are welcome! I am glad that this helps!

[@proudvietvet2926]

I have been trading for close to 15 years now. The Wheel Strategy is the best one so far. Thank you Markus for a great video! My Son (44 y/o) clued me into this strategy back in early December 2020 and I have yet to lose a penny in the market. This video reinforces everything I have been shown and tried!

[@rockwelltradingservices]

Awesome! Thank you for watching! :)

[@proudvietvet2926]

@@rockwelltradingservices My pleasure Sir. Anxious to see more new videos from you!

[@rockwelltradingservices]

I live stream every Monday, Wednesday and Friday. See you soon!

[@proudvietvet2926]

@@rockwelltradingservices Thank you sir! Keep up the great work!

[@proudvietvet2926]

@@rockwelltradingservices Markus, Have you done a video on the "Iron Condor" Strategy?

[@kelsonxie1953]

8:11 if you're going to add the premiums together, shouldn't you also add up the P&L from the stocks? It's kind of misleading if you only add up the premium column but not the stocks one, so you'd actually be down $1150 instead of what it looks like to be $150

[@MrDeadlyCrow]

Yea, exactly what I thought. However, it isn't a deal-breaker tho. Comparing to mere buying 100 stocks for $100 you are better anyway, because you'd be down $2000. And you wanted that stock anyway, remember? : )

[@producerqa1648]

Very honestly, from all the channels for option trading by far you are the best! am very happy to find you.

[@rockwelltradingservices]

Hi Producer Qa, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍

[@anirudhkitt]

This is perfection :) Thanks Markus, now I can share it with my buddies who think trading is rocket science.

[@rockwelltradingservices]

You are welcome! I am glad that this helps! :)

[@morenoe1000]

Great video. I’m new to trading and usually only do day trading through cheap stocks or options. Never considered actually owning stock, but now see a great benefit. You explain clearly and love the visuals. Thank you!

[@rockwelltradingservices]

Keep learning! I am glad that you have started trading. ;) Thank you for watching!

[@elynno9911]

Hello guru, I wonder after we are assigned for the strike prices, at what price we should buy or sell our stock next? Base on technical analysis? Or a pre percentage Of profit we want to make for the system? Appreciate if somebody can help.. thank you

[@rockwelltradingservices]

It really depends on how bullish you are on a stock. If you are bullish, then you can sell calls 1-2 strike prices above your assigned price. That's what I did with DFS today. If you are ready to get rid off the stock, then just sell call with a strike at the assigned price. Does this help?

[@1engineers]

What trading platform are you using?

[@rockwelltradingservices]

Hi! We use the PowerX Optimizer for our stock scanner and Tradier as our broker.

[@nicdav100]

How can I accurately define my risk using this strategy? Because I could be assigned the stocks and I just have to wait for the stock to go back up, begin selling calls I don't understand how to define the risk before entering the trade.

[@zhentaomi9448]

Very easy to understand. Thank you.

[@rockwelltradingservices]

You are welcome! 😉

[@fitzroyw1]

Hi Markus, Very Well explained. Could you tell me if it is a good idea to get the maximum out of the trade by picking ATM options only, when choosing your strike prices? Therefore every month you most probably have to Buy the Stock or Sell the stock. But the Premium collected would be much bigger.

[@rockwelltradingservices]

HI Fitzroy, it really depends on your strategy: If you WANT to be assigned, then you can choose a strike price that's close to the current price. Yes, the premium is higher and so is the risk of getting assigned. If you choose a strike price further away from the current price, then it's more likely that you "just" keep the premium and don't get assigned. Does this help?

[@richardw2977]

Very well explained ‼I appreciate that you don't talk down to us but still give great info. This was very clear and well paced. The only problem, now, is that I have to watch all of your other videos because I'm betting you have a lot of experience to share. 🤣🤣

[@rockwelltradingservices]

Lol! That is a good problem. Check my playlist for specific topics! ;)

[@fups1]

Best video I've seen of this topic! Is it okay to wheel a triple leveraged ETF like SOXL?

[@rockwelltradingservices]

Hi Yeet, I personally wouldn't do it because the leverage can hurt you. Keep in mind that if the semiconductor index moves by 2%, SOXL would move 6%. Everything is amplified. That's why I stay away from leveraged ETFs when using "The Wheel". Does this help?

[@belaved2983]

Hi Markus which trader are you using

[@rockwelltradingservices]

Hi! I am not sure if I understood your question. Are you referring to the software?

[@CarlisleCullen-j2b]

Why is it when the stock drops to 80$ or so, and 20* 100 shares, the open pnl still shows a loss of $1k, shouldn't it be 2k?

[@jerrytom3514]

Thanks Marcus. I have a question. Why does anybody use a covered call strategy at all? Selling puts just seems so much easier and so much less risk. I appreciate your answer

[@LukasTradingJourney]

Selling naked puts on a falling stock exposes you to infinite losses... so that's why no beginner investor should do it.

[@sergiocay2k]

Why don’t you roll the put over to another 30 days out before stock was assigned. You can buy back put and sell same strike put 30 days further and received extra premium?

[@Bigworm77]

You should do a pre-market and a webinar and you will get so much followers.. great ideas

[@rockwelltradingservices]

Thank you for the suggestion. I appreciate it. 😊

[@visasimbu]

Markus, please explain how to do adjustments when trade goes wrong in covered call or poor man covered call ? Means if suppose underlying stock is going down till it's expiry, is there anyway to cut down losses or come out with minimal loss.. ? I understand that we can rollover to next month for selling call. But if we still believe that next month also stock will not come up. It's no point to rollover. Please pour us with some adjustments ?

[@JK-vb9ps]

if the underlying increases significantly you can roll the call up or up & out . if the stock is very bullish, you can hold selling the call first to allow the stock to run

[@willdale9297]

Love this video! Thanks for the lesson Markus! Really helped me understand this concept a lot. Happy Trading!

[@rockwelltradingservices]

Hi Will Dale, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍

[@karthiklfhs]

At 7:02 what's the logic of choosing a strike $20 away? Also at 8:18 isn't the loss from the stock $2000 and not $1000?

[@nathanstepp86]

Is there anyway to track the wheel strategy for multiple stocks at a time on preferably one excel spreadsheet? Or do I have to use one spreadsheet per stock? I have a spreadsheet for adjusted cost basis but it only does one stock at a time. Thanks in advance

[@rockwelltradingservices]

With the latest version of PowerX Optimizer, you can track up to 100 stocks with the scanner :-)

[@elizabethrjimenez1125]

Excellent course. Thank you

[@rockwelltradingservices]

😊 You are welcome! I am glad that this helps!

[@Powershifter1234]

Do you do any sort of hedge with this strategy? I just started doing this strategy but have been buying really cheap OTM puts, it frees up margin drastically and protects me during any sort of black swan event. So I guess technically I’m selling super wide credit spreads and collars. Any drawbacks to doing it this way? Thanks

[@andrewdesrosiers5658]

You’ll be right much more of the time, but if the stock is dumping that much, it is either black swan or the company would be no longer valuable to you most likely. When that happens, if you haven’t made enough on most of your trades it could be really painful holding those shares. That’s why you’d have to backtest the winning percentage vs profits over time. It’s much more likely you make more money selling a good company that falls 10-15% and getting a recovery over far otm puts and waiting for that underlying stock to recover from where you’re obligated to purchase the shares at.

[@alexanderbarroga1088]

You are amazing I been looking for a video that can explain this method for a while cause it was confusing as heck... you made it very easy to understand!

[@rockwelltradingservices]

Hi Alexander, thanks for watching. And thanks for your feedback. Much appreciated. Have you already watched the other videos in the playlist: kzbin.info/aero/PLBa3sAx-Io2nosgosERUhIZwzvIgD-3Vq Let me know if this helps.

[@daddydude1390]

EXCELLENT explanation, thank you! Love how you toss out an impressive 43% return and then casually state you personally prefer around a 60% return! Niiiiiccceee 💪😎😎😎

[@rockwelltradingservices]

LOL - Thanks, Daddy Dude! Stay in touch, and let me know if you need help with anything. 😀👍

[@Nellieyohanjr]

Hello ,What broker are you using on this exercise?

[@philisa_ntlahla]

Very nice video Im from South Africa, our brokerage accountants don't allow options. Which account can I open to start this

[@rockwelltradingservices]

Try rockwelltrading.com/ibkr or rockwelltrading.com/broker Let me know if this works. 👍

[@diddly7309]

So the scenario where its actually -2k open PnL, you just wait until it goes up? And in all these scenarios you dont class anything open in calculations?

[@rockwelltradingservices]

Yes, in a scenario where you have an open loss of -$2,000 (PnL), the typical approach is to wait for the stock to recover before making any decisions. In terms of calculations, open positions are generally not included in your realized profit and loss (PnL) until you close those positions. This means that while you may have an open loss, it doesn’t affect your realized PnL until you sell the stock. It's important to have a plan for when to exit or adjust your positions, especially if the stock doesn't recover as expected. Always consider your risk tolerance and investment strategy when managing open positions. If you have further questions or need clarification, feel free to ask!

[@johnsnow9232]

Very helpful and informative 😊

[@rockwelltradingservices]

I am glad that this helps. ;)

[@BetsyGibson]

I’m interested in the course

[@upittman1]

good content. thanks

[@rockwelltradingservices]

😊 You are welcome! I am glad that this helps!

[@luismanuelmendoza789]

Thanks!

[@cluggyahoo]

I really enjoyed the way you explained the wheel. It's clear and concise. Just got yourself a new subscriber

[@rockwelltradingservices]

Awesome! ;) Have you watch my playlist about it? Here kzbin.info/www/bejne/jn6nZp6Aa5d3a7c

[@hoorano]

Would you recommend using stocks with weekly options?

[@JK-vb9ps]

weekly has higher liquidity but monthly are fine too

[@Terrerfeu17]

Wonderful explanation! I am new to trading and this is such a wonderful strategy to learn. Love your podcast too! Keep up the fantastic content!

[@rockwelltradingservices]

Thank you! I am glad that you like this. :)