Covered Strangle vs the Wheel Strategy
The wheel sells a put, takes assignment, then writes calls. A covered strangle sells both at once and can leave you long 200 shares. Side by side payoff math.
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The wheel sells a put, takes assignment, then writes calls. A covered strangle sells both at once and can leave you long 200 shares. Side by side payoff math.
The wheel strategy sells a cash-secured put, takes assignment, then sells covered calls. We trace both legs through one real pair of SPY option contracts.