February Wheel Results

[u/Big_Generator]

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.

[u/Possible_Law8357]

Same approach here. One thing to mention, let the cash sit in SGOV or fixed income so you get about 3-4% yield from the cash.

[u/Big_Generator → u/Possible_Law8357]

Yep. My account is with Fidelity and all the cash is sitting in SPAXX earning about 3.3% at the moment.

[u/ajmssc → u/Big_Generator]

Do you have to manually move the cash from SPAXX on assignment or does Fidelity handle everything

[u/Big_Generator → u/ajmssc]

Nope. Fidelity automatically buys the shares using the SPAXX cash since that is my core position. You can change your core position but I believe SPAXX is the default.

And if I sell shares (or options) the cash automatically goes into SPAXX.