The Wheel Strategy
The wheel strategy is a systematic options approach built around generating income while being willing to own quality stocks. It typically begins by selling a cash-secured put on a stock that is attractive at a lower price. If the put expires worthless, the premium is kept and the process repeats. If assignment occurs, the strategy naturally transitions into selling covered calls against the owned shares. Over time, the wheel emphasizes discipline, consistency, and understanding trade-offs rather than predicting market direction.
What makes the wheel effective as a learning strategy is its structured cycle. Each phase—selling puts, managing assignment, selling calls, and returning to cash—has a distinct purpose and risk profile. Instead of reacting emotionally to assignment or missed upside, the wheel reframes these outcomes as expected parts of a repeatable process. Mastery comes from understanding where you are in the cycle and making decisions that align with that phase
The Wheel Phase Tracker (How to Use This Tool)
The wheel phase tracker below is a learning-focused “Tracker”, not a profit estimator. Its purpose is to help visualize the wheel as a continuous loop and clarify what matters most at each stage of the strategy. By selecting your current phase, the tool highlights where you are in the cycle and presents focused guidance on what to prioritize, what to monitor, and what to avoid. This keeps attention on process rather than price noise.
Think of this tool as a decision companion. It does not tell you what trade to place, but it reinforces the mindset required for the wheel to work as intended. Whether you are waiting on a put to expire, managing assigned shares, or selling a covered call, the tracker helps anchor your actions to the strategy’s structure—reducing confusion and encouraging consistency over time. Try it out: select a phase below to see where you are in the wheel and what matters most next
Follow the cycle and understand what matters at each phase.
Footer Disclaimer
The information on this website is provided for educational and informational purposes only and does not constitute financial, investment, or trading advice. Options trading involves substantial risk and is not suitable for all investors. Past performance is not indicative of future results.