Trading The Wheel Strategy (How To Trade Covered Calls & Cash Secured Puts)

[@anthonyaltamirano871]

Honestly Brad, you changed my life, it’s crazy how transparent and honest you are. You inspired me and my brother to get into options, thank you so much for making financial education accessible to those who would have not known otherwise.

[@BradFinn]

I appreciate that bud. Means a lot! Good luck

[@marilynwheaton9047]

ditto!

[@snowflake4194]

Hello Brad! I'm a single mama to a kiddo with special needs and I can only work on the weekends, which is such a financial struggle...Since I have watched all your videos, I'm selling covered calls from my long term investments and I am able to cover my mortgage every month and I am so very thankful!!! I recommend you to everyone that asks me how I do it and you have blessed my little families life, thank you so very much!!!😍

[@BradFinn]

Thank you so much for the kind words. Things like this really make my day! I hope the best for you and your family!

[@snowflake4194]

@@BradFinn You are the best! Much love to you and your family~

[@P__114]

Congrats

[@picklerpickler8785]

A recent win, 10 covered calls. I caught stock at top made 10 cc. Two hours later stock dropped, made 340 dollars in two hours.

[@BradFinn]

Nice

[@Sudar2424]

If I'm being honest your the only youtuber that I feel I can trust! You actually give useful information that others try and sell! Thank you!

[@BradFinn]

I appreciate that Matt and that means the worst to be. Trust is not easily earned. I can assure you of one thing you can always trust from me. I’ll always be real. The good the bad and the ugly. And I clap when other win

[@mrwak6]

Best video you have done on the wheel so far. I tried wheeling with stocks that were cheap and not profitable and it didn't end well.

[@BradFinn]

Thank you so much for the kind words

[@BradFinn]

Soft Cover and Ebook: Wheel Strategey Guide and Journal amzn.to/3qL2K82 Time Stamps: Intro 0:00 Why Trade Options 2:00 What's An Options Contract 2:39 Options Chain 3:25 Possible Outcomes 5:15 Pros And Cons Of Covered Calls 6:30 Pros And Cons Of CSP 9:40 Starting With The Call 12:00 Managing Your Position 14:00 How To Get The E-Book 15:00

[@dlipp23]

Always appreciate your videos, you can put out a Wheel video every week and I’ll learn something new. Cheers 🍻

[@BradFinn]

pretty safe to say you'll get one a week

[@bushraumbreen1190]

Hi, I'm very new to the options trading and I'm also a teacher. I watched many of your videos and I'm learning a lot. Thanks for making all these videos. I'm hoping to retire in next couple of years. Options trading will be my retirement plan. Thanks again.

[@BradFinn]

Good luck

[@df56gh4d5h]

Hi Brad thanks for the video. Were you using the wheel strategy in 2022 during the market dive? If yes, may I ask how you did?

[@BradFinn]

Yes, wonderfully. One of my best years yet. Ton of puts

[@wangwei969]

Hi, i added the membership, hoping to learn more about options. could you please explain how can I download the spreadsheet you used to track the option trading for wheel strategy?

[@BradFinn]

Email me at thefinnmindset@gmail and I’ll get it to you

[@heavenbound78]

Brad, you have got to be the best video on options i have seen. great info thank you

[@BradFinn]

Wow, thanks!

[@mackfitzpatick2592]

Hey Brad, what are your thoughts on Wheeling a dividend stock like Reality Income (O)? Can't you make money on the CC, dividends, and underlying growth all at once?

[@BradFinn]

You can. If you like the investment then go for it

[@marilynwheaton9047]

I love your videos. You are my go to for all things options. Just bought your paperback on the wheel strategy from Amazon. Would you consider doing a book on rolling covered call and the greeks. Thanks so much!

[@BradFinn]

Closing Options From MONDAY: kzbin.info/www/bejne/rmqtXq2mdtqasLM The Greeks (My Most Viewed Video): kzbin.info/www/bejne/apWyZHmZhNiBrbs Check out my video list for all the videos you need

[@daniloitaliano]

great video! one question though: you mention you do the wheel on VTI. Would you do it also on single solid stocks like KO and MCD?

[@BradFinn]

I do it with many single stocks. I update my wheel stocks every month

[@sarahsmith9831]

You should talk about implied volatility along with stock selection and expiration dates.

[@BradFinn]

I do

[@wymandyer6261]

thank you for the vid, did it once and got the premium but,,the position was against me for one sleepless night,,now what if i closed the position while its against me, how much would i be out and how would i calculate this?,,thanks again

[@BradFinn]

Net premium is the sum of what you collect when you open and what you pay to close

[@wymandyer6261]

@@BradFinn thank you

[@coachyamyam9666]

Been following all your videos. Question: have you ever done a CSP or covered call on any of the REIT’s like STAG or STOR?

[@BradFinn]

no

[@potatoes6936]

Brad, I started the wheel strategy 2 weeks ago. I have been doing 7-10 days CSPs and about 30 days covered calls. What time frame do you recommend on options? Thanks!

[@BradFinn]

Really depends on the situation. Try out different ones and see what works best for you

[@willgordon5737]

Do we have to write our puts in red days? Or green days?

[@BradFinn]

You can’t write them on whatever day works best for you. I write them on red days

[@davidpearce4838]

Great video Brad. Thanks.

[@BradFinn]

Thank you

[@sansebastian1190]

I'm excited to start wheeling the wheel, good video Brad! Good thoughts on when to start with the calls or start with the puts. Seems like the wheel has a lot of opportunities the last 6 months or so of opportunity, buy and sell to recognize profit plus collect delicious premiums instead of watching a stock ride waves up and down with no realized profit.

[@BradFinn]

Good luck bud

[@warko01]

Congrats on 100k subscribers Brad!!

[@BradFinn]

Thank you! Need your email for the ebook. Email thefinnminset@gmail

[@theswagman2138]

I've only just gotten into the stock market overall about 5 months ago, I began like a lot of unresearched people and bought a random stock I thought might go up after doing the smallest amount of research on the company and lost 75% value after the next week, luckily it went back to positive and I profited recently though not much and ive decided instead to build a dividend portfolio and follow options strategy like these after seeing your videos in the matter thanks for being a guiding hand on this subject

[@taraodonnell9893]

Excellent content Brad always learning from u on the daily !!! You make it easy to understand and Thky for sharing your knowledge with us ! Everyday I look forward for your new videos 😇💰💰💰💰

[@BradFinn]

Cheers Tara. Thank you! See you on the next one

[@TheSneakybones]

How to determine the optimal time to maturity for a cover call and cash secured put?

[@BradFinn]

Up to you. Like I mentioned in the video, I close at 75% profit

[@piercarloscalamandre5204]

awesome video ty a lot! if you target is 5% month like you said in a comment below, how leverage do you use? example: 100K portfolio with portfolio margin (so no REG T), do you sell put for max 200K (leverage 2) if you get assigned for every put you sold? what do you suggest?

[@BradFinn]

I don’t use margin. My options protfolio is just over 40k and 60% is usually being used

[@coachyamyam9666]

I picked those because they are decent dividend stocks and share price is not ridiculous like some other ones

[@BradFinn]

sweet

[@wheel4premium]

If your focus is income wouldn’t it be best to get assigned as long as it’s above your cost basis? This way you start fresh each time, and it mitigates risk of your shares dropping too low with market fluctuations,which would impact the strike price you can choose the next time?

[@BradFinn]

kzbin.info/www/bejne/rH66poyGgreMn7s

[@MrAsimuk007]

Hey Brad, I was thinking of starting the wheel strategy with Apple shares. My plan is to sell monthly puts where the strike price is the current share price. What are your thoughts?

[@BradFinn]

Cool! Good luck

[@castelojlable]

Not that I have made a bunch of money using this strategy as I have gotten handled in the past couple months (looking at you SWBI) but I appreciate your perspectives and simple ways to get across the information so that everyone can understand. Thank you for what you do and hopefully I'll be able to implement these strategies better so my wife doesn't kill me!

[@BradFinn]

Struggle is real! Wives will definitely keep you on track.

[@That_blade]

Hey brad, I am curious of your thoughts on some disadvantages of the wheel strategy. I have been running IWM wheels for a while now and I'm curious if you have considered these.1) There is a higher risk that your entire portfolio will eventually trade at a price above the current stock price. For example, if you keep running the wheel strategy, eventually all of your calls will get exercised, and to re-enter you will have to sell new puts. If you an unlucky, the puts will be exercised and you will be forced to buy in at a whole new higher price. Meanwhile the buy and hold investor gradually accumulates shares at various lower prices along the way. 2) Tax inefficiency: we obviously have to pay taxes along the way, while buy and hold does not (mentioned in video). Wheel is my primary stock stat, but given the combination of these ideas, is it even worth it?!? Am I looking at this incorrectly?

[@BradFinn]

I spoke about the cons in the video

[@mohgujai]

my sub 0.2 delta CSP's was working, until it didn't. Of course that's part of the game, gonna take that assignment and hope for the best.

[@BradFinn]

Good luck

[@oliver.79]

Hi Brad, I’ve started watching your videos this year!! Great stuff! Thank you so much! Just some ideas: On the wheel strategy, I watched your all videos and it would be good if you could explain when to sell the call or the put. Meaning, could you do that with the same stock? Meaning sell the covered call and then later sell a put on that same stock? The examples I’ve seen you using you always sell different stocks between call and puts. Is there any relation between the calls and the puts? Could you please clarify that on the wheel strategy? Another thing, when you talk about being taxed as regular income over the premiums, what happen when you roll? Meaning, you pay to close and sell with a profit, does the premium you pay to close count anything on your tax? Thank you!!

[@BradFinn]

That what the video you commented on is about 🤔 it’s all talked about in the video.

[@averagejoesmo1967]

Which video has the list of your frequent wheel stocks that you use? You mentioned in another video that one video had that list. Thanks

[@BradFinn]

I try and get some updates out pretty often

[@robinruane6255]

Awesome info Brad! Love the opportunity to make $$ and not be risky! And clean clear explanations make it easy to understand. 😁

[@BradFinn]

Thanks Robin

[@elizabethdelgado2109]

So we can buy stocks and sell stocks in ROtH IRA? Of course sell after a year so we won’t get bad taxed

[@BradFinn]

There is NO TAX on capital gains ans premiums in a Roth IRA. Yes you can invest in stocks in them

[@_KingdomMinded]

Great breakdown ! This strategy definitely aligns with the portfolio I been building ! (I do run a few credit spreads for a lil bump using TA) . Thanks for all the work you put in and the podcast is great as well ! This video came out right when I was teaching this strategy to one of my friends, so I was able to just send him this video! Well done ! Note : you spelled covered call wrong in the slides.

[@BradFinn]

Thanks Andrew cheers. Thanks for sharing the video

[@rrertypicky]

Watched your videos and started this at the beginning of this year with TNA. A high IV with good premiums and fairly cheap to start. Any pros cons of doing this with an ETF?

[@BradFinn]

There are pros and cons to everything. I don’t have a huge problem with it. I spoke about it on the live stream recently. kzbin.info/www/bejne/oai1i3VniJqaiaM

[@rrertypicky]

@@BradFinn awesome I'll give it a listen

[@DaptaHBah]

Thanks for the printable version

[@BradFinn]

No worries

[@chadinnocenti4906]

Great video, whats your opinion on what's going to happen in the market with the fed raising interest rates this year ? If History tells us anything a sell off my be on the horizon? Maybe leaps maybe the 2022 strategy not the wheel ? Buy leaps at bottom of theses interest rate market sell offs ? , I would think doing the wheel in this environment may come with the risk of being stuck holding the bag on a possible big down turn from the fed interest rate raise . Do you think it may be a time to jump in on some leaps contracts? Or to risky ?

[@BradFinn]

I trade ton of LEAPS. i don’t try and time the market though. Will there be a sell of when rate up? Maybe? When will rates go up? No idea? I try and focus all my energy on things I can control. Not speculation

[@andreamugnai2937]

Hi Brad, thanks a lot for the writing the wheel strategy manual! We don’t have Venmo here in Italy, can I PayPal you the money? How much does it cost? Thanks again

[@BradFinn]

You’re welcome! The easiest way it to get it through my patreon page www.patreon.com/bradfinn it’s $5 for just the book. $9 for the book and discord chat

[@sebastiendurand9367]

@@BradFinn $9 per?

[@piercarloscalamandre5204]

If you don't use margin, it means that with a 100k portfolio, if you get assign for all put you sold, you never stay above 100K of shares bought? ty

[@BradFinn]

I dont follow what you mean.. I dont use margin meaning I dont borrow money from my broker to make trades

[@pal8h]

It still comes down to picking the right stocks. Making a few percentage points is meaningless if the underlying stock drops 30+%. Don't chase the premiums!

[@BradFinn]

Agree

[@codingchallenges]

Lot of traders say the wheel is a safe strategy, but what exactly makes it safe? There's no hedge, no stop loss, the downside is not protected at all. With the only loss control in place being "it's not a loss until you sell", the wheel is a recipe for bag holding indefinitely.

[@BradFinn]

Seems as though you need a little more time to learn how options work. The hedge is your collateral, you can stop loss by setting a limit buy to close, a covered call by definition is downside protection. I still have never lost selling options in three years because I set the terms of the contract so I can’t lose. No need to bag hold when you can roll your option. It never needs to be assigned. If you have something against options, that’s one thing, but try and learn how they work before passing terminal judgement.

[@codingchallenges]

​@@BradFinn How is collateral my hedge? Hedge is what protects the collateral either fully or partially. When selling options, the premium you collected is a partial hedge because it limits the potential losses. Anyway, you can roll the put. But if you don't ever want to get assigned, then it is not a wheel. Assignment is part of it. I guess we both have a lot to learn.

[@robinruane6255]

I beat you! Notification squad!

[@BradFinn]

Yes You Did!!! Keeping me on my toes!

[@raymundvalderrama]

Thumbs up and subscribed yall!!!

[@BradFinn]

thank you

[@ericnazario8486]

Cool vid!

[@BradFinn]

Thanks

[@lja-pc6kc]

Brad, good video but your tax comments were not 100% correct. Tax is complicated, but premiums can be gains depending on the circumstances.

[@BradFinn]

👍🏻

[@donelportillo438]

Yay I'm one of the early ones in a vid

[@BradFinn]

Yes you are

[@piercarloscalamandre5204]

If you don't use margin, I can't understand how you can profit 5% month, it means that annualized roi of every trade is about 60% that is very much!!

[@BradFinn]

Correct math. It can be hard to imagine until you get there. Then you start to not understand bigger unthinkable things

[@alchilds3710]

maybe I will try this once the market drops the predicted 90% but for now, my money sits

[@BradFinn]

Sounds good. Good luck

[@dougmanck4149]

Love your videos, but, I wish you (and others) would not use the term "adjusted cost basis". In general terms this infers "tax basis" and can be misleading and confusing to viewers. A much better term to use is "breakeven price". Just my suggestion.

[@BradFinn]

Thanks for the feedback

[@sebastiendurand9367]

Are you using 1% per week target?

[@BradFinn]

To be honest I do about 5% a month. I just wanted to stay conservative in the video

[@BedWetter707]

Why not trade $TSLA, you should be able to sell both calls and outs for +10% gains daily

[@BradFinn]

Go for it!

[@cindi258]

Flacket!!! LOL

[@BradFinn]

Almost that time again!!

[@benno390]

You seem like the kind of bro that doesn’t wear pants during your videos

[@BradFinn]

I wouldn’t say your far off. Lol

[@benno390]

@@BradFinn 😂

[@donny5429]

The only thing I'm not understanding is what you're talking about with having 100 shares and unrealized gains saying it's not worth it? I'm not sure I understand what you're trying to explain.

[@BradFinn]

100 shares of unrealized gains now becoming realized at assignment may cause a taxable event that frankly isn’t worth the premium collected. But that is personal preference

[@donny5429]

@@BradFinn but isn't that the whole point of the wheel strategy is to eventually get assigned?

[@oliver.79]

I did with a stock that I bought for $20 and it is worth now $140. It’s been working fine. Last December I was about the get assigned when it touched $200 so I rolled further in time (Jan with a profit and Feb having to pay for it) to not be assigned. It worked perfectly. The stock fell back to $150. I guess as long as I don’t get assigned, it is working.

[@michaelgreen6974]

Man, I'm actually starting to think that in today's market it's better to buy and resell insurance than it is to write the contracts yourself🤣

[@BradFinn]

Good luck

[@calvinlong1321]

Is the wheel strategy creating a constant wash sale? 🧐 The disallowed losses of wash sale are passed to tax basis changes (or disappear in the IRA with underlining stock holdings). The running tax basis changes could be a huge tax mess when long-holding underlining stock in multiple brokerage accounts (taxables and IRA). 💣😱

[@BradFinn]

Nope. Different expiration are different options. Not to mention the wash sale applies to loses. No one is losing here

[@calvinlong1321]

@@BradFinn Wash sale is applied to sale of the assigned stock. XYZ was $100, sell Put $95 for $2 premium, XYX went $90 and Put was assigned $95 (cost basis=$95-2). XYX keep go down, its better wheel out asap. So sell Call $85 for $3 premium and executed. A case for XYZ ended a cap loss -$5 =proceed(85+3)-basis(95-2). The cap loss will ride on the basis change of any existing XYZ position or following wheeled in XYZ positions within 30 days. If XYZ happens a position hold in an unrelated IRA account, the cap loss cannot be claimed (disappeared) per IRC Sec 1091(a).

[@michaelgreen6974]

Man I've been getting screwed lately selling puts. I think I'm gonna change my strategy. For now on I plan to hedge my wheel plays by starting them as verticals or diagonals, (short put long depending...) Depending on how the trade progresses, I can sell the long leg to maximize profit, or make a roll of the short to OTM for a credit

[@BradFinn]

Good luck

[@steve99912]

It has been a rough couple months for put selling.

[@michaelgreen6974]

@@BradFinn Thanks!

[@chillbill4565]

👍🏼🤩

[@BradFinn]

🕺🏻

[@kevinlue4756]

420 likes haha. OK I'm 40 years old with kids. Shame on me.

[@BradFinn]

How many kids?? 69??🤣🤣