Summary of How to Master The Wheel Strategy

00:00:00 - 00:15:00

The wheel strategy is a popular way to trade options, and it is fun and a good way to diversify a portfolio. However, you can be fleeced by taxes on short-term capital gains, and there are contribution limits and income limits for using the strategy in an individual brokerage account. The video discusses how to master the wheel strategy, which is a trading strategy that can be profitable if done correctly.

• 00:00:00 The wheel strategy is a popular way to trade options, and it is fun and a good way to diversify a portfolio. However, you can be fleeced by taxes on short-term capital gains, and there are contribution limits and income limits for using the strategy in an individual brokerage account.
• 00:05:00 This video explains how to master the wheel strategy, which is a trading strategy that uses puts to protect profits. The strategy is based on the principle that whatever you sell above your adjusted cost basis is the profit you're going to get.
• 00:10:00 The author discusses how to master the wheel strategy, which is selling covered calls below the cost of the stock but above the adjusted cost basis. He explains that this strategy can pay off if the stock does not drop, but it is also possible to lose money if the stock does drop.
• 00:15:00 The author provides tips on how to make money trading the wheel, including adjusted cost basis, taking premiums into account, and rolling.