Wheel Strategy: A Profitable Approach for Patient InvestorsDiscover the Wheel strategy, a variation of the Covered Strangle, perfect for generating steady income and acquiring high-quality stocks. This options strategy involves selling cash-secured puts and covered calls, allowing you to accumulate shares at better prices and earn premium income.Key features of the Wheel strategy:1. Sell cash-secured puts to collect premium income.2. Acquire shares at a lower price when the put is exercised.3. Sell covered calls to generate more income while owning the shares.4. Repeat the process until shares are called away and start anew.This strategy differs from a Covered Strangle as you dont own the stock initially and dont combine options strategies at the same time. It works best with options expiring between twenty-eight and sixty days.Three stocks with unusual put options activity, suitable for this strategy, are Workday, Robinhood Markets, and SoFi Technologies. For instance, selling a one hundred fifteen dollar put on Robinhood could yield three hundred sixty-five dollars in premium income, with a high chance of the stock staying above your break-even point.

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