The Wheel is a relatively simple options trading strategy where you repeatedly sell cash-secured puts (CSP) to collect option premium.
Should you ever get assigned, you would hold and then sell covered calls (CC) on the assigned stocks. If your stocks ever get called away, you go back to selling CSP. Rinse and repeat.
The goal of this article is to shed some light on what The Wheel is about in more detail and explain some of the tips and strategies that one could use while running The Wheel.
If you ended up here before knowing anything about options trading…
When it comes to options trading, the implied volatility (IV) is just as important as the direction the underlying security (stocks) moves.
In this article, I am going to explain briefly what is IV and its importance when it comes to options. This would also serve as a brief introduction to the options Greeks such as Theta, Gamma, Vega, and Delta.
Before we begin, you should at least be familiar with the basics of options such as call options, put options, DTE, ITM, OTM and etc.
If you are interested in learning about the basics of options, feel free to…
I remember vividly how overwhelmed I was when I was first introduced to options. All I knew was there were call options and put options. Never knew one could sell a call option or sell a put option.
Things got even more confusing when I was introduced with more daunting vocabularies such as — Delta, Theta, In the Money, Out of the Money, Intrinsic Values, etc.
Like many, I was intimidated by the technical jargon that people use. Forget about the technical complexities, I didn’t even know what to look (Google) for. I was helpless.
The main motivation for me…
Like many others, I often look for quick and easy ways to avoid paying the full cost for a meal.
At worst, whenever I am paying for the full cost of a meal, I would at least want to get some form of cashback or reward points out of it.
Here, I hope to share with you some of the tricks I personally use for myself in order to gain the most value out of your daily transactions in Singapore or Malaysia, without much hassle in our busy lives.
Bear in mind that some of the links in this post…
Typically, when you are bullish on a stock, you would purchase shares of the underlying stock and hold it for the long term.
In this article, I am going to talk about how one could magnify their returns using Long-Term Equity Anticipation Securities (LEAPS) while understanding the potential risks involved.
Generally, options traders would put on positions with 30 to 60 days to expiration (DTE), which means the stock price outlook or prediction usually falls within one or two months' time frame.
LEAPS options on the other hand would mean options with an expiration of at least one year or…
An ETF, also known as Exchange Traded Fund is a collection of securities — such as stocks — that are being bought and sold in real-time.
In many ways, ETFs and mutual funds share a lot of similarities, except for the fact that ETFs are listed and traded on stock exchanges, just like ordinary stocks.
While using “The Wheel” option strategy, I was consistently on the hunt for the best ETFs. For some context, “The Wheel” is sometimes known as the Triple Income strategy which relies on selling options and collecting premiums. …
Typically when we invest in stocks, we would buy now and hold on to them until the underlying becomes more valuable and sell it. This is going “long”. The idea is that we want the stock price to go up, in other words, we make a profit when the stock price increases.
Going “short” on the other hand is the opposite of this. Typically when you go “short” on a stock, you want the stock price to fall, because you make money when the stock price decreases.
The contents on this site are for informational and entertainment purposes only and…
If you are developing a set of APIs, chances are you already know Postman — an API Client for API development. Generally, one would use an API client to test APIs in terms of functionality, performance, security, reliability, and the correctness of the responses.
While Postman is the de facto standard for API testing and development, I would like to draw your attention to a fast and easy-to-use alternative to Postman — Insomnia REST Client.
There’s one big problem that you will eventually uncover as you spend more hours developing your GraphQL API. The problem doesn’t give you any errors nor it is obvious to developers — the “N+1” problem.
The goal of this article is to shed some light on how one could use Dataloader to address the “N+1” problem in Graphene Django while creating a GraphQL API for the
Many-to-One relationship between tables.
In case you are lost somewhere in between or you would like to try out everything on your own, you may find the source code here at GitHub.
As software developers, we often make use of GitHub Gist to instantly share our code snippets here on Medium, plus it looks amazing here.
Software engineer. Enjoy talking about tech & finance. ✌️ Ask me anything!