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Wheel
Basic
Not Assigned Different choices
Opening:
Opening 1st Position
Sell the ATM or ITM Put if you want the highest chance of being assigned.
Sell the OTM Put at the 20 or 30 delta depending or your assumption about the underlying.
Was Stock Assigned? Closing early to reduce the risk of being assigned:
1 Sell 1 OTM Put
Put to you. Roll out @ a certain percentage of Credit. 50% Higher
Roll out @ a certain time frame. When it is basically worthless to close. Or 10 days left.
What till expiration. Least amount of work you could be assigned the shares
Assigned
Shares PUT to
2_ATM_Call, you
2_Straddle,
2_Straggle
Assigned Shares Different choices
CALL’ed Away Opening:
2 Sell the ATM Call if you want the highest chance of being assigned away from you.
Sell the Call at the 20 or 30 delta depending or your assumption about the underlying.
2nd Position
ATM_Call
Closing early to reduce the risk of being assigned:
Sell ATM Call on Roll out @ a certain percentage of Credit. 50% or Higher
Was Stock Assigned?
the shares Roll out @ a certain time frame. When it is basically worthless to close or 10 days left.
Called away from you.
assigned What till expiration. Least amount of work you could be assigned the shares
Not Assigned
This adds risk and increases your position size. Be sure to double check that you are under the 5% portfolio
1
size. Different choices:
Assigned Shares Opening:
CALL’ed Away Sell the ATM Straddle.
Advanced 2nd Position
2a Closing early to reduce the risk of being assigned:
Roll out @ a certain percentage of Credit. 50% or Higher
2_Straddle
Was Stock Assigned? Roll out @ a certain time frame. When it is basically worthless to close or 10 days left.
Shares CALLED away Sell ATM Straddle What till expiration. Least amount of work you will be assigned either Called Away or more shares Put to
from you. Start over. on the shares you.
More Share PUT to assigned Shares get called away You are back to Flat No shares of stock no open Option contracts. Start over from
you. Sell 2 CALLS. the TOP Green 1.
More Shares get PUT to you Sell 2 ATM CALLS MIDDLE Yellow 2.
Not Assigned
The Wheel
Advanced
This adds risk and increases your position size. Be sure to double check that you are under the 5% portfolio size. Different choices:
1
Opening:
Assigned Sell the Neutral Strangle.
2b Sell the Straggle at the 20 or 30 delta depending or your assumption about the underlying.
Closing early to reduce the risk of being assigned:
Advanced 2nd Position
Was Stock Assigned? Roll out @ a certain percentage of Credit. 50% or Higher
Roll out @ a certain time frame. When it is basically worthless to close or 10 days left.
2_Strangle
Shares CALLED away from
you. Start over.
Sell Neutral Strangle What till expiration. Least amount of work you could be assigned the shares
More Share PUT to you.
on the shares Shares get called away You are back to Flat No shares of stock no open Option contracts. Start over from the TOP Green 1.
Sell 2 CALLS.
assigned More Shares get PUT to you Sell 2 ATM CALLS MIDDLE Yellow 2.
Not Assigned
This adds risk and increases your position size. Be sure to double check that you are under the 5% portfolio size. Different choices:
1 Opening:
Sell the Skewed Strangle, ATM Call and Put at the 20 or 30 delta depending or your assumption about the underlying. This gives
2_Skewed_Strangle to the Call
Assigned you a high chance of shares being CALL’ed away
2b
Closing early to reduce the risk of being assigned:
Advanced 2nd Position
Roll out @ a certain percentage of Credit. 50% or Higher
Was Stock Assigned? Roll out @ a certain time frame. When it is basically worthless to close or 10 days left.
Shares CALLED away from Sell Skewed Strangle What till expiration. Least amount of work you could be assigned the shares
you. Start over. to the CALL side on Shares get called away You are back to Flat No shares of stock no open Option contracts. Start over from the TOP Green 1.
More Share PUT to you. the shares assigned More Shares get PUT to you Sell 2 ATM CALLS MIDDLE Yellow 2.
Sell 2 CALLS.
Not Assigned
Advanced 2 Position 2_Skewed_Strangle to the PUT
1 This adds risk and increases your position size. Be sure to double check that you are under the 5% portfolio size. Different choices:
Opening:
Assigned Sell the Skewed Strangle, ATM PUT and CALL at the 20 or 30 delta depending or your assumption about the underlying. This
2c
gives you a high chance of shares being PUT to you
Closing early to reduce the risk of being assigned:
Was Stock Assigned? Roll out @ a certain percentage of Credit. 50% or Higher
Shares CALLED away from Sell Skewed Strangle Roll out @ a certain time frame. When it is basically worthless to close or 10 days left.
you. Start over. to the PUT side on the What till expiration. Least amount of work you could be assigned the shares
More Share PUT to you. shares assigned Shares get called away You are back to Flat No shares of stock no open Option contracts. Start over from the TOP Green 1.
Sell 2 CALLS. More Shares get PUT to you Sell 2 ATM CALLS MIDDLE Yellow 2.
nd
Not Assigned