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 39, 114 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.6:49
03How the cost comes downBasis: what the shares really cost after everything you have been paid.in production
04Putting it together — the wheelPuts into shares into calls and back again.in production
05Taking the shares earlyWhen waiting stops paying you anything, and what to do about it.in production
06When it goes against youThe covered strangle, and the order to try things in.in production
07Finishing the tradeCalled away is the good ending. The mistake is reaching for more.in production
08Put or call — the same tradeAt the same price they are the same bet. The difference is where the cash sits.in production
09How a machine runs itThe rules, unattended, against a public book.in production
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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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