Wheel Strategy 101
The foundational curriculum for options-income traders. Eight sequenced lessons that walk you from "what is a stock option?" to running your first wheel with confidence. Each lesson includes a quiz to check your understanding and lock in the concepts. Estimated total time: ~90 minutes.
Your Progress
1
What is the wheel strategy?
The full picture in 5 minutes. Why premium sellers use it. What every wheel trade has in common.
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2
Cash-Secured Puts explained
The first leg of the wheel. How CSPs work, what "cash-secured" means, how to price your first CSP.
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3
Assignment basics
What happens when your CSP goes ITM. Cost basis, taxes, how to think about being assigned as feature not bug.
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4
Covered Calls explained
The second leg of the wheel. How CCs work post-assignment. Choosing strike vs cost basis vs current spot.
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5
The complete wheel cycle
Putting it all together: CSP → assignment → CC → callaway. Full-cycle ROC math with worked example.
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6
Choosing tickers for the wheel
Liquidity, IV rank, cost of capital, sector diversification. The 7-question ticker screen every wheeler should use.
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7
Delta selection and risk
0.20, 0.30, 0.40 — which delta and why? The relationship between delta, assignment probability, and premium capture.
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8
5 common wheel mistakes
Wheeling meme stocks. Chasing IV. Rolling into earnings. Ignoring correlation. Under-sizing capital. Learn from others' losses.
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How this path works
Each lesson is 5-15 minutes of reading + a quick 5-8 question quiz at the end. Complete lessons in order — each builds on the previous. Your progress and quiz scores are saved automatically in your browser (nothing is sent to our servers).
Prerequisites
None. If you know what a stock is, you can start Lesson 1 right now. If you already have experience selling premium, you can skim the early lessons and focus on the quizzes to verify comprehension.
What you'll be able to do at the end
- Explain the wheel strategy to another trader without hand-waving.
- Price your own CSP and CC using the site's calculators.
- Choose an appropriate ticker and delta target for your account size and risk tolerance.
- Identify and avoid the 5 most common wheel-strategy mistakes.
- Continue on to Options Greeks Deep-Dive with the foundation you need.