Stock Price: $200/assigned @ 199 Stock Price: 195/called away @ 196 Premium: $890 Stock loss: $-400 P/L: $490 Stock Price: $200/assigned @ 200 Stock Price: $195/called away @ 195 Premium: $1135 Stock loss: $-500 P/L: $635 It's better atm?
What results do you get when using other values like 2 and 5 ? IMO the Wheel Strategy requires too much capital.
I adjusted for that and it yielded substantially worse results...spreadsheet saying atm yields the best results...consistent with the calc above using todays data. It doesn't require much capital considering the returns. Look at it like a buy and hold dividend stock on steroids. The HULK strategy (Hold Until Last Strike)