Finding The Best Stocks For "The Wheel" Strategy – Coffee With Markus | Episode 73

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Coffe With Markus | Episode 73

Show Notes: https://www.rockwelltrading.com/coffee
Options Wheel Strategy

Timestamps
0:00 Introduction
2:15 Market Recap
8:30 Viewer questions
11:30 Finding The Best Stocks For The Options Wheel Strategy.
30:15 Question and Answers
37:45 Featured Question
39:10 Featured Question
41:10 Featured Question

Show Notes: https://www.rockwelltrading.com/coffee
Options Wheel Strategy https://www.youtube.com/watch?v=nBmPCet8fzM

Finding The Best Stocks For “The Wheel” Strategy

One of the most important things to remember when looking for stocks to trade using the options wheel strategy is this: you MUST be okay owning the stock. This strategy although conservative can potentially risk assignment of options contracts.

If you’d like to learn more about this amazing strategy, feel free to check out our Options Wheel Playlist. (LINK HERE)

When selecting stocks that are right for the Options Wheel Strategy there are a few select criteria that need to be met

Higher Volatility In Options – This is important because the first part of this strategy involves selling premium in the form of put options. One of the tools I use to find options with high volatility is Barcharts.com. When using this platform or any other to find your stock, you have to remember the following:

Find stocks with 30-50% volatility
Trade stocks in the $30-$200 range.
Choose contracts with 7-21 DTE (Days To Expiration)

Avoid stocks that are approaching earnings reports. During earning season there can potentially be an increase in the volatility of the underlying stock. This type of risk is not suitable for the Wheel Strategy.

Select stocks that are trending upward generally, or have strong support.

Check the Wheel Calculator. This calculator can be used to determine position size based on your account value and cost of options premium.

For more information on the Wheel Calculator, check it out here https:www.rockwelltrading.com/wheel

As we review the positions taken, I’m going to discuss the previous criteria and how I’ve applied them to each trade.

The profitable trades recommended in this video are part of my newsletter alerts that are sent out when I identify high-probability trades. You can sign up for the newsletter here www.rockwelltrading.com/wheel

The last thing that you have to do after finding the right options contracts is to execute the trade!

✅ First, subscribe to my channel here so you never miss a new video: https://bit.ly/3aLKLDz

✅ Attend A FREE Live In-Person Stock & Options Trading Bootcamp: https://bit.ly/2w1j2js

✅ Watch My Daily Trading Routine Here (that takes me less than 15 min/day): https://bit.ly/2ICZkgX

✅ Get a FREE Hardback Copy Of My New Book “The PowerX Strategy”: https://bit.ly/2wMQ7zW

✅ Watch An On-Demand Training On How I Trade: https://bit.ly/39IRUVd

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Comments

Markus Heitkoetter says:

For my complete 'bread & butter' strategy, get a FREE hardback copy of my book "The PowerX Strategy", just pay $4.95 shipping & handling: https://bit.ly/2wMQ7zW

Sam Roberts says:

Is it possible to make sustainable profits from Forex and how do you go about it?

Isaac Michaels says:

Great video!

glenn pierce says:

I tried to text you at your phone number but no one answered me

Kevin Mackenzie says:

How can I get the wheel calculator?

Jinsoon Pak says:

It’s very very helpful.
I use bar charts 📊 not use
For options,,

Michael says:

Hey Markus… So, I see an ADR indicator on your charts lately… Are you having an affair with a new indicator? 🙂
Why start the wheel (or for that matter ever do a Secured Put) if the stock is trading above the 200 SMA..? Why not just start with buying the stock and using covered calls… ? Thanks Mike

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