Alpha Algo Trader

The wheel, explained

Learn the wheel

Every answer here is backed by a live book — real fills, wins and losses, updated hourly.

Written from a live book — day 54, 157 fills posted.

The wheel, lesson by lesson

Nine lessons, in order, from someone who has run this strategy for years — now as an algorithm, against a book you can read.

01Name your price, get paid for itWhat a cash-secured put actually is — who pays you, why, and the two ways it ends.6:3102Getting paid to sellYou own the shares. Now the same trade runs the other way.6:4903How the cost comes downBasis: what the shares really cost after everything you have been paid.6:4004Paid from both sidesThe covered strangle: the trade that pays you twice while you wait.6:3405Picking the companyThe only rule in this series you cannot recover from getting wrong.6:3406Picking the priceWhere to agree to buy: below the floor, not above it.5:2207How much on one stockAbout a fifth of the account per stock, and start with half of it.3:5608Finishing the tradeCalled away is the good ending. The mistake is reaching for more.4:17
09Put or call — the same tradeAt the same price they are the same bet. The difference is where the cash sits.in production
10How a machine runs itThe rules, unattended, against a public book.in production
Watch the series on YouTube →

Short answers

What is the wheel strategy?What is a wheel strategy in options trading?How to pick a stock you would ownHow does a wheel strategy work step by step?What assignment actually looks likeWhat does selling options in a wheel strategy actually mean?How the cost basis comes downHow does the wheel strategy lower your cost basis?The risks, and what we do about themWhat are the main risks of using a wheel strategy?Wheel vs covered callsHow does a wheel strategy compare with a covered call strategy?

Watch it run.

The algo runs this every trading day and every fill is posted publicly — wins and losses, updated hourly, on a paper account.

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