The wheel combines cash-secured puts and covered calls into a repeatable income cycle. Sell puts to enter stocks at a discount, then sell calls against your shares. Alpha Copilot finds the best setups on both sides.
The wheel is a three-phase income strategy. First, sell cash-secured puts on a stock you want to own. If assigned, you acquire shares at a discount (strike minus premium). Then sell covered calls until the shares are called away. Repeat the cycle and compound your income.
Collect income on both sides — put premium to enter and call premium while holding shares.
Each premium collected reduces your effective cost basis, building a larger margin of safety over time.
The strategy resets after shares are called away, creating a systematic process you can run indefinitely.
Only wheel stocks you genuinely want to own. If assigned, you will hold 100 shares, so choose fundamentally strong companies with liquid options and moderate-to-high implied volatility.
For puts, sell at or below support where you would happily buy. For calls after assignment, sell above your cost basis to ensure a profit if called away. Alpha Copilot evaluates both sides automatically.
If the stock drops below your target, roll puts down and out for additional premium. After assignment, if the stock drops further, roll calls down cautiously — never below your cost basis.
Assignment is not a loss — it is part of the plan. Once assigned, immediately transition to selling covered calls above your cost basis. Continue collecting premium until shares are called away.
Instead of manually scanning options chains for both puts and calls, describe your wheel plan and Alpha Copilot does the analysis. It finds optimal entry strikes, calculates position sizing, and plans the covered call phase after assignment.
Try asking:
"Find wheel strategy opportunities on AAPL with good premium"
"Best stocks for the wheel strategy under $100"
"Run the wheel on NVDA — show me put entry and call plan"
Explore wheel strategy setups for specific stocks and market conditions.
The entry side of the wheel. Sell puts to acquire stock at a discount while collecting premium.
The exit side of the wheel. Sell calls against shares you hold to generate income.
Similar bullish bias with defined risk. Use when you want credit income without assignment.
Profit from range-bound markets with defined risk on both sides.