A practical guide to the wheel options strategy

Learn the mechanics of cash-secured puts and covered calls, including trade selection, assignment risk and worked examples. Options involve risk and outcomes are not guaranteed.

Published by Volatility Pty Ltd · Last reviewed 17 July 2026

How the wheel strategy works:

Understand the sequence of selling cash-secured puts, possible assignment and covered calls.

Risk and portfolio considerations:

Review assignment, downside exposure and the trade-offs involved when selling options.

Trade rules and worked examples:

See how entry criteria, strike selection and position-management rules can be documented before a trade.

A practical guide to the wheel options strategy

Ready to take your trading to the next level?

How the wheel strategy works:

Risk and portfolio considerations:

Trade rules and worked examples: