1. Read the risks first
Options can lose you money. Before anything else, read the risk information.
2. Learn how the Wheel works
The beginner's guide walks through the whole cycle with one example. If a word is new, look it up in the glossary.
3. Understand the two trades
- Cash-secured puts, where the Wheel starts
- Covered calls, what you sell after being assigned
4. Decide how much to risk
Read about capital allocation, then try the cash planner with your own account size.
5. Choose stocks carefully
The stock research guide shows how I look at a company before I'd sell a put on it.
6. Know what to do when a trade goes wrong
See rolling options and use the roll calculator to check a roll before you make it.
7. See how I run it
My approach is on the how I do it page, and common questions are answered in the FAQ. Before any trade, I run through my pre-trade checklist.
- Everything here is education, not advice.
- Start with a paper account or very small positions until you're comfortable.
- Questions? Ask in the Reddit community.