Want Weekly Profits? Master This Option Strategy
Turn Your Stock Portfolio into a Weekly Paycheck Machine
Table of Contents
What Is the Wheel Strategy?
How It Works (Step by Step)
Why This Strategy Works
Common Pitfalls and How to Avoid Them
Pro Tips for Maximizing Profits
Introduction
Hey Trade Warriors!
If you’re looking for a strategy that pays you weekly and gives you a shot at beating that 9-to-5 grind, let’s talk about The Wheel Strategy.
This isn’t just some theoretical concept—I personally run this strategy every week. And I’ve seen firsthand how powerful it can be when done right.
Maybe you’ve dabbled in options before. Maybe you’ve even tried The Wheel and got stuck. But if you stay patient and let compounding do its thing, this can be a game-changer. (Read more on perseverance in trading.)
Let’s break it down into simple, actionable steps so you can start cashing in.
What Is the Wheel Strategy?
The Wheel Strategy is an options trading method that generates steady income by selling options in a continuous cycle. The trick? You only do this with stocks you’re comfortable owning long-term.
At its core, this strategy has two main moves:
Sell cash-secured puts until you’re assigned 100 shares.
Sell covered calls on those shares to generate even more income.
Once your shares get called away, you rinse and repeat. It’s like running your own weekly or monthly paycheck machine.
How It Works (Step by Step)
Step 1: Sell a Cash-Secured Put
✅ Pick a quality stock that you’re comfortable owning 100 shares of.
✅ Sell a put option at a strike price where you’d be happy to buy the stock.
✅ If the stock stays above your strike price, you keep the premium and sell another put next week.
✅ If the stock drops and you get assigned? No worries—move to Step 2.
Step 2: Sell a Covered Call
✅ Now that you own 100 shares, sell a call option at a strike price above your cost basis.
✅ If the stock reaches that strike price, your shares get sold—you keep the premium plus any stock appreciation.
✅ If the stock doesn’t reach your strike price, the option expires worthless—you keep the premium and sell another call next week.
Step 3: Repeat the Cycle
✅ If your stock is sold, go back to Step 1 and sell a new put.
✅ If your call expires worthless, just sell another call the next week and keep stacking those premiums.
Why This Strategy Works
✔️ Collects consistent income from option premiums.
✔️ Reduces risk because you’re only trading stocks you’re comfortable holding.
✔️ Uses time decay to your advantage—since options lose value over time, you (as the seller) benefit.
✔️ Can be done with minimal capital—you just need enough to buy 100 shares of a stock.
Honestly, it’s like running a rental property—except instead of collecting monthly rent, you’re collecting weekly or monthly option premiums.
Common Pitfalls and How to Avoid Them
🚨 Picking the wrong stock – Stick to stable, high-volume stocks. Avoid highly volatile or speculative names unless you really know what you’re doing.
🚨 Not managing risk properly – If a stock tanks, don’t just blindly hold. Adjust your strategy—maybe roll the option or switch to a different stock. (Check out this guide to risk management.)
🚨 Selling too close to expiration – Give yourself enough time (e.g., 30-45 days out) to collect a solid premium and reduce risk.
Pro Tips for Maximizing Profits
🔥 Use ETFs like SPY or QQQ – They’re more stable than individual stocks and offer steady returns.
🔥 Sell options with a delta between 0.30 and 0.40 – This gives you a solid balance of premium and probability.
🔥 Roll options when needed – If an option is about to get assigned and you’re not ready, roll it out to a later date to avoid assignment or lock in more profit.
Final Thoughts
The Wheel Strategy isn’t some overnight riches scheme. But if you’re patient and consistent, the compounding effect can be life-changing.
Would you try The Wheel Strategy? Vote below! ⬇️
📢 Drop a comment if you’ve run this strategy before or have any questions!
Next time, we’ll talk about how to pick the best stocks for The Wheel Strategy—so stay tuned!
Stay humble and keep trading,
TJ Stubbs
Founder, Light Trades