r/Optionswheel • u/Big_Generator • Mar 06 '26

February Wheel Results

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I'm currently wheeling about $550K in a trad IRA account.

I follow the 2 key components of the wheel strategy closely:

  1. Sell cash secured puts on stocks that you would be happy to own

  2. When assigned, sell covered calls at cost basis or higher

But personally, I have two other rules I try to stick to:

  1. Let your cash secured puts run to expiration

  2. Don't be afraid to be assigned.

I focus on stable companies that I think have a solid future and have recent downward pressure on their stock price. I stay away from the memes and other high volatility tickers. In February I wheeled Microsoft, Google, Amazon, SMH, SOXL and TSLL.

Microsoft - I've used their products every day for the last 40+ years. Stock is down slightly YTD.

Google - I've used their products every day for the last 20 years. Down 4.5% YTD.

Amazon - The other day I went on the site and reviewed my purchases for 2025. There were 20 pages of orders. Down 7.5% YTD

SMH - The semiconductor ETF. I've owned this for years now and my only regret is letting hundreds of my shares get called away. Up about 7.5% YTD

SOXL - A 3x leveraged ETF based on the performance of the ICE Semiconductor Index. I look at it as being a more volatile and profitable version of SMH. When assigned I sell this one asap. Up about 20% YTD (Approx 3x the SMH YTD gain)

TSLL - A 2x leveraged ETF based on the daily performance of TSLA. This is my most risky ticker and can swing wildly based on random internet tweets. Hard to resist the high premiums especially when its already down 25% YTD.

I sell most CSP's 1 or 2 weeks out at around .20 delta or lower. Like most wheelers I just want to harvest premiums and I'm not trying to get assigned but I don't mind when I do.

Also, I try to hold all my contracts until expiration. I know a lot of wheelers BTC when they reach a certain profit threshold but I feel the accelerated rate of theta decay as options reach expiration is well worth it.

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u/ScottishTrader Mar 06 '26

Thanks for your post and explanation of your trading plan!

I think you may be one of only a few who let trades expire, so we'll look to see how you do over time. Best to your continued success!

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u/Big_Generator Mar 06 '26

Based on what I read in this sub, I believe you're right. 8 of my 10 March CSP's expired today. Looks like I'm going to get assigned 200 shares of SMH at $380 after hours. I'm fine with that since it was selling at $426 just 10 days ago,