Wheel strategy is the ultimate trading cheat code

prefer selling options to buying if you want to be a winner in the long run

Photo by Taras Chernus on Unsplash

Investing in the stock market is confusing for many beginners and even veterans believe it or not who don’t understand all the different strategies you can use to make money.

WallStreetBets on reddit is full of stories of investors losing all their life savings on crazy bets. You don’t have to be one of them. It’s pure gambling and has a very high probability of you losing money instead. To be fair there are clear winners too who have become millionaires overnight but surely they are a handful minority

Now there are a lot of different strategies you can use in the stock market today. There is a simple buy and hold of stocks which you believe over the long term that majority of the people use. But I am going to be talking about the strategies in the options market instead.

My Life Of Learning

Over the last 5 years I have spent a lot time learning how options work and all the different strategies. Obviously, I haven’t tried all of them but have tried the most common ones which I will briefly discuss. According to optionstrading.org, there are 52 different strategies you can use today. It’s absolutely crazy!

I started out with Long Call/Put which is the most beginner friendly of them all. I made decent profit starting out making over 60% of my capital in a very short time which excited me to continue. Ultimately, I gave all my earnings back to the market and just broke even. This whole process lasted a good six months. I then moved onto Credit/Debit Spreads strictly which are not so beginner friendly but mathematically give you a higher probability of profitability. I had very good success over and over again and was able to grew my account consistently with this but ultimately gave back all my profits again on a steep market correction. At this point I was exhausted and wanted to move on from options trading

Until then I never thought of strictly selling naked options as all the brokers show it as having an unlimited risk potential but after being exhausted with the whip saw movement of my account I started looking into selling options and thats where I…