Anybody is using the wheel? I am doing it very lightly and it seems to be a minimum stress trading strategy. Any ideas of how to maximize efficiency? (Best stocks to trade, entry points, searches, tracking software, relevant calculators or spreadsheets)
I've used the wheel. I like entering with a ratio spread as you get a larger pop when assigned. No real strict rules I follow. I use weekly options when available. I like doing these on stocks under $10.
I am doing it with stocks I am comfortable to hold if assigned. Do you use any specific searches or calculators?
Can't say i do. i don't trade them as much now. just keep a few going. i'm trading mostly weekly butterflies at this point.
I am revisiting the Wheel strategy. I have $200,000 invested on SPY. If I use the WHEEL approach, selling cash secured puts at 15-20 delta and covert calls if assigned, I will have ideally a 20% return a year. By turning the capital 3 times a week, SPY has 3 expirations a week, I will have the compounding effect to my favor and since I would use low delta low risk and low time exposure. In addition, I will probably be out of the market the night after expiration, farther reducing my risk exposure. It looks that I would have a higher return this way than buy and hold, without any additional risk. It seems that I would reduce my risk in the expense of missing explosive moves to the upside. Am I missing anything? Doesn't that beat by and hold SPY?
Makes sense. Someone else has a thread on doing this weekly. They are having a good year. I'm toying with doing this starting in a couple months but plan to do it using a ratio spread to enter on the put side. Collect a smaller premium but when it breaks and am assigned go in with a larger profit. Can't decide if I want to do it in SPY or IWM. I hadn't thought of the fact that SPY gives you more expirations. Looking forward to seeing how it goes.
Trading halt for whatever reason (9-11 type thing)...Market reopens 20% lower. Are you covered?? One leg got filled...The other didn't.
For $500 you can have the details: Except: I will only disclose the details iff and only if 1000 retail suck^H^H^H^Hcustomers like you pay for it at the same time.
good question. I mean most long term investors aren't really covered they just plan to ride it back. Just finished a book this morning on hedging. Called for one of three strategies, buying vix calls, garbage puts, or spreads on OTM SPY PYX etc. I don't know. If I'm running the wheel on SPY maybe I look at carrying an ongoing hedge relative to size for the black swan. Or say fuck it i'm in it long term on this part of the strategy anyway.
In other words I'm on my way to selling my strategy for at least $500k to stupid retail if nothing better comes along. Worth $500B overall so you would be stupid not to buy it. And keep it confidential.