I've made over $800,000 personally

running one strategy over and over on AI

stocks and other high growth names. And

that strategy is the wheel strategy.

Now, even if you've heard about the

strategy before, the way a lot of videos

on YouTube go over it is completely

wrong. And the way that I run the wheel

strategy, I know for a fact is different

from everyone else. And I'm not going to

hold back. I'm going to reveal

everything in this video. Specifically,

I've been running this strategy on AI

stocks such as Palunteer, Nvidia, and

Nebius. I'll explain later with examples

within my own personal portfolio. Now, I

think everyone watching wants the same

basic thing, a portfolio that actually

does something for you without needing

to be right about every single market

move. Okay, I get that. If that's you,

thank goodness because this video is

about a system and process that I have

been using to repeatedly use the wheel

strategy and get into stocks without

having to do much guesswork. And I spent

over a decade in this business,

including some time on Wall Street. And

if there's one thing that stuck with me

is that you don't need to predict the

market to have a plan for it. You need a

process. So, here's what we're going to

do. I'm going to break down exactly what

this strategy is in plain English,

right? From scratch, no assumptions.

Then, I'm going to show you why I'm

picking these three stocks to run the

wheel strategy on them right now. I'm

going to go over each one with technical

analysis as well as a strike selection

that I choose. getting into the trade,

managing the trade, common mistakes that

you can make if you're already running

the wheel strategy, and then I'm going

to show you a special process that I

haven't covered in any other YouTube

video, even in my other wheel strategy

videos. So, I respect your time. After

we go over the foundation, we're going

to go over some real trades like

Palunteer, Nvidia, and Nibbius, real

strikes, real numbers, exactly what I

do, and what I'm currently doing. So,

what is the wheel strategy? So, let's

back up for a second and discuss what

the wheel strategy is and how smart

investors are adapting in the market

with the wheel strategy given so much

volatility lately because I don't want

to lose anyone and there's a lot more

foundation that you can build from the

wheel strategy even if you think that

you're already doing it successfully.

So, the wheel strategy involves using

stock option contracts and also

potentially buying regular stock. Sounds

complicated, but in reality it is

actually pretty simple. An option in the

most basic form is just a contract. We

give someone the right to buy or sell a

stock at a specific price by a specific

date. That's it. The specific price

written into that contract is called the

strike price. Think of it very similar

as two sides of a contract. So in that

contract there is a buyer and seller and

they agree on the price. And when you

sell one of these contracts to someone

else, they pay you for it upfront. That

payment is called the premium. If you're

buying a contract then is your paying

premium and that is a debit. If you are

collecting income and you're selling an

option, that is a credit. That's the

money that changes hands the moment the

trade is placed regardless of what

happens after. Now, the version of this

that I use most is called a cash secured

put. A put is an option tied to selling

a stock at that strike price. When I

sell one, I'm the one taking on the

obligation. I'm telling the market if

this stock falls to my strike price by

this date, I will buy the stock at that

strike price. And the cash secured part

just means that I actually have cash in

my account sitting there and ready to

cover my position if I get assigned and

I have to buy 100 shares. So I'm not

borrowing to do this. The money is

already there. And that's why it's

called a cash secured put. Think about

it like being an insurance company for a

minute. Now what an insurance company

does is they sell a policy. They collect

premium upfront. In exchange they take

on a risk for paying someone else if

they get into an accident. That's

exactly what I'm doing when I sell a put

option. I collect the premium the moment

I sell it. It's mine to keep no matter

what happens. In exchange, I'm accepting

the risk that I might have to buy these

shares at my strike price. Okay, so

here's where things get interesting. If

the stock stays above my strike price by

expiration date, nothing happens. It

expires worthless and I'm free to do

anything I want and my capital that's

being tied up is released. But if the

stock falls below my strike price, I

will get a sign. That just means that

the contract gets exercised and I am not

obligated to buy those shares at the

strike price that I agreed to when I

entered into the trade. This is the part

that I mentioned in the opening. I'm

totally fine with that. I assignment

isn't the strategy failing. It's the

strategy working exactly as designed. It

just moved into its next stage because

once I own shares, I am not stuck with

those shares hoping that they recover

and I'm just sitting on my hands. I turn

around and I sell a covered call, an

option where I'm now agreeing to sell

those same shares at a strike price

above what I paid. And again, I collect

premium upfront for agreeing to that

risk. If the stock climbs past my strike

price, my shares will get called away

from me. And again, I will get

exercised. Now, I collected my premium

and my shares are gone and I'm back to

cash. If it doesn't go up to the strike

price, then I still have the stock. The

stock is called out of the money. it is

not above the strike price and the

option will expire and I'm basically in

the same position that I was at before I

sold the covered call which is I just

have shares now though I have the same

shares and the covered call that I sold

on has expired. So I can do that again.

I can do a full loop. I can again either

sell a put option if I get exercise if I

still have the shares then I could just

sell another call option and collect

more premium on a covered call. And in

this process, it just continues turning

round and round collecting along the

way. That's the whole strategy in a

nutshell. And everything from here is

just going to be applying that to

specific stocks. So let's discuss why AI

stocks in particular like Palunteer,

like Nvidia, like Nebius or potentially

some other AI stocks that you guys are

following on. Why are they paying so

much in premium? It really comes down to

one concept, implied volatility or IV.

This is the part of this video where

we're going to start to build up on the

wheel strategy and learn how to execute

it in this current market environment

which has more volatility in it and more

swings. So this is called implied

volatility. Implied volatility is

basically the market's forecast range of

movement for a stock. How big of a swing

the market is currently pricing in,

whether it potentially might go up or

down. And we'll discuss that when we

talk about skew and over what given

stretch of time. It's not guaranteed

what will happen. It's just a barometer

and an assumption that the market is

assuming may happen over the next

specific time period. It's an

expectation baked into the price of the

option themselves. I like to think of it

like a weather forecast. If the forecast

calls for a light breeze, well, nobody's

paying extra for storm insurance.

There's just not that much risk to price

in. But if the forecast calls for a

major storm system rolling through,

well, that same insurance policy

suddenly costs a lot more because the

potential swing is bigger and the risk

is real. And there's many places around

the world where there is really high

catastrophe risk, whether it's

hurricanes or earthquakes, and those

places have very expensive insurance.

It's the very same thing when you're

doing the wheel strategy and you're

selling options. Options work the same

exact way. A bigger forecast swing in

the stock means there's a fatter premium

for whoever is selling that option and

that is because there's higher risk.

Well, that person selling options is me

in that case. And AI infrastructure

stocks over the past year or so have

been sitting at very high storm forecast

zones. Palanteer is currently trading

for $125 per share. But just two weeks

ago, I posted a video on this channel

when Palanteer was at $109 per share

saying that this stock is a good value.

Same thing happened with Bloom Energy

which I covered because I was discussing

a video on Leo Paul Ashenber. That

company has moved 20 or $30 per share on

a weekly basis. It has also had a lot of

volatility. So when I look at a company

say Palunteer which is now trading at

125 as I'm recording this. Well,

whenever it has massive moves in either

direction, the market argues with itself

about what is this business actually

going to do? People are confused because

there's so much volatility and what its

AI business is actually worth. This

difference in opinion is exactly what

raises implied volatility and makes it

so high. So, let's go to Nvidia for

example, which is trading for $210 per

share right now. And it's arguably the

center of gravity for the entire AOS

rate. Everyone's watching it, which

means that everyone's got an opinion,

which means the option market is pricing

in very big uncertainty. As I'll show

you later in this course, you will see

the comparison between Nvidia, Nebius,

and Palencer in terms of implied

volatility. Then I'm actually going to

show you another AI stock which has even

more volatility than these three. So the

third stock that I'm going to talk about

is Nebias, which is around $220 per

share. Although, as I make this video

and I edit it and I release it, it might

be a totally different price. If you're

watching this in the future, just make

sure that you understand the wheel

strategy and all the techniques and

concepts that I'm teaching you here

because you'll be able to apply this

knowledge in your current portfolio

regardless of when you're watching this.

So, I would put Nebius in a completely

different bucket alltogether. It's a

smaller, newer company still

establishing its footing with its

revenues and that shows up directly in

the option pricing. more uncertainty

about where it lands means richer

premiums for someone selling options on

it. But also means that the range of the

outcomes is genuinely wider. So there is

indeed a lot more risk. So we'll be

discussing how to manage that risk when

I go over the live example. And this

leads me to the part that I don't want

to really gloss over. A higher premium

always comes with higher risk attached.

That's not a bug in the map. That's the

whole reason the premium is higher in

the first place. Elevated IV cuts both

ways. It can hand you bigger premium on

the way in, but it can also mean a

bigger, faster move against your

position if the stock breaks in the

wrong direction. And that's why I'm

going to spend so much time on risk

management later in this video. I'm not

telling you these three tickers are the

bright ones for you to go buy. This is

just what I'm choosing to run the wheel

strategy on right now because I see a

lot of implied volatility and I have

formed a strong opinion on them based on

my own research. In my opinion, the

volatility profile makes sense for what

I'm trying to do. Every trader has to

weigh that risk for themselves. So

before I pull anything up on my own

account, I want to show you how I

actually run this because this is where

I think most of the videos out there get

it wrong. It's the part that took me

years to really dial in. It starts with

the stock, not the premium. A lot of

people open their brokerage account,

sort the whole list by the fattest

premium that they can find, and then

they sell it put on whatever is paying

the most amount of money. That is

completely backwards and exactly how

people get burned and end up losing

money. The first question I ask before I

actually look at a single option is

simple. Would I actually be happy owning

the company at a lower price? Because

remember, when I sell that cash secured

put, I'm agreeing to buy the stock if it

drops. If I wouldn't want to own it in

the first place, no premium is worth it.

So, I start with names that I actually

believe in. I look at the fundamentals.

I look at where the stock is

technically, and I look at how the

market's feeling about it. Only after a

stock clears that bar do I even open the

option chain. Once I'm there, the next

decision is a strike price. And this is

where a number called delta comes in.

Delta tells you roughly how many cents

an option moves for every dollar the

stock moves. But there's a second way

sellers like me use it. And it's the

useful one. Delta also gives you a rough

read on the odds the option finishes in

the money. A put with a 30 delta has

very roughly about a 30% chance of

landing in the money by expiration. So

when I pick a strike, I'm not just

eyeballing it. I'm using delta as an

odds check. I tend to sell puts well

below the current price at a lower delta

because I'd rather collect a slightly

smaller premium and give the stock more

room to breathe then reach for a fat

premium sitting right there where the

stock is trading. That is a deliberate

choice. It's more conservative one that

you'll see most people don't want to

make. Then the other mistake that a lot

of investors make with Google strategy

is there's time. How far out will you

sell? They go way far out when they sell

options. And I actually lean towards

shorter data contracts. And the reason

is a thing called theta. Theta is time

decay. It's the amount an option loses

in value every single day just from time

passing. And when I'm the seller, the

decay is working in my favor because the

option I sold is slowly losing money.

And that is the whole point. When the

option is in its final week, theta is

incredibly high and it starts to decay

very fast. In fact, if the option is out

of the money, it is going to decay to

absolutely nothing at expiration. if the

option stays out of the money. Data

speeds up the closer you get to

expiration. So selling shortdated puts

means that the DK is working hard for me

and my cash isn't tied up for months

just to collect a modest premium. In

fact, my cash is being tied up for say 1

week and in that one week that option

may lose 100% of the value that it's

worth whenever I sell it. And the last

piece of all this is before I ever hit

sell its size. I decide upfront how much

of my account any single name is allowed

to take up and I don't budget and I'll

come back to why that one number matters

so much more and is potentially the most

important number that you can have in

the entire process of doing the bull

strategy. So, that is a setup, a stock

that I generally want to own, a strike

price that is sensible to me makes sense

based on the technical analysis that

I'll show you later on. A shorter window

of time because that option is going to

expire worthless ideally if it continues

to stay out of the money. And size, a

size that I'm comfortable with that

makes sense for risk management

purposes. So, enough theory. Now, I'm

going to open up my portfolio and

discuss what I'm actually seeing with

real stocks. I'm going to walk you

through on three different names that I

mentioned, Palanteer, Nvidia, and

Nebius. And I'm also going to give you a

bonus that has very high implied

volatility. And I'm going to show you a

unique way of running the wheel strategy

based on a stock that has very high

implied volatility. All right guys,

let's jump into my portfolio. And as I

show you the wheel strategy in my Robin

Hood account, I'm also going to be going

over some technical analysis. So we're

going to do a deep dive on Palunteer

first and then we will go into the other

two stocks that I want to mention as

well. So first of all, Palanteer on the

technical chart here is $132 per share.

It's up 1.4% 4% and as we will talk

about technical analysis later in this

course you will understand a bowlinger

band which I'm going to open up right

now but I'm going to keep this a little

bit more simple for now. So right here

you can see this is a bowlinger band and

we'll get into much more detail here

later but essentially you can see that

pounds here is right at the moving

average. So it looks pretty fairly

valued and the RSI here is also right in

the middle at 53. Okay so let's jump

into my account here. We're doing pretty

good. Then I go to search. I'm going to

type in Palunteer. I'm going to show you

how I'm going to think about entering

into the wheel strategy right now on

Palunteer stock. So I'm going to go to

trade options. Okay. And my first step

is really to build the wheel strategy by

selling put options. Okay. So I'm going

to go for an expiration that's going to

be roughly a month a month and a half

out. So I'm going to go for September 18

as an expiration right now. And yeah,

I'm at selling puts. Make sure you're

selling. Don't make the mistake of

buying a put by accident. I've seen that

happen very very rarely, but yeah, just

make sure you have the correct order.

So, it should be sell to open uh put

option. Okay, now I'm going to scroll

down here and I'm going to click 120.

Okay, you'll see here that the bid is

740 and the ask the 760, which is really

nice. The tighter the bid ass spread,

the better really. If it's tighter, that

means you're losing less money and Robin

Hood as a brokerage and as a financial

platform makes money specifically on

option trading when the bid and asset

spread is very wide. So make sure that

you find stocks that have a nice bid ass

spread. Doesn't have to be Palenter. It

could be any of the other number of AI

stocks or safe stocks or consumer

stocks, whatever you want. So yeah,

Palunteer 120 put September 18. The

delta here is right around 30, which

means a 30% chance or three out of 10

times that, you know, this option will

end in the money at expiration. So it'll

be 120 or less at expiration about 30%

of the time based off of the Greek

delta. Okay. Okay. So, yeah, if I wanted

to sell this, which I actually will. I'm

going to just execute on this trade. I'm

just going to do one contract here just

so I can eat my own cooking. You guys, I

want you to know that whatever I'm

teaching on this channel, I'm actually

genuinely doing for myself as well. And

I have a lot of, you know, stocks and

options in my portfolio. And I've been

doing this for 10 years, but I still

want to kind of put the proof in the

pudding that I'm going to execute on

this trade. I'm going to just do one

contract here. So, let me sell this. And

there you go. I got filled. So, um, I

just collected $739.96

because even there's some regulatory

fees. But anyways, this is kind of like

the first option that I'm executing in

terms of the wheel strategy on

Palunteer. Let me go into Palunteer and

just show you the position I currently

have because I've been running the

strategy for a while before I move over

into the second stock, which will be

Nvidia. I actually have a lot of shares

and I originally got into it at IPO and

I cover a lot of stocks on this channel.

So, make sure to subscribe because I do

option trading, but I also do stock

research and that's what I spend a

considerable amount of my time doing

every single day. But you can see here

that I have 120 puts. Actually, I'm not

running too much of the wheel strategy

on Palunteer. I have some option buying

here. And I also have a covered call

that's in the money. We'll talk about

rolling and how to manage in the money

covered calls. You might think, well,

you have a 115. Yeah, but also you can

see the gain that I have. I have

$161,000 here that I made personally on

Palunteer. This is part of the wheel

strategy, but this is like endstage.

This is late stage wheel. Don't worry

about this for now until later on in

this course. Let's jump into our next

stock, which is going to be Nvidia.

Nvidia is a great company and it's

actually been going sideways a lot. And

then, you know, when I show you

different market environments to run the

wheel strategy, honestly, like a

sideways market or, you know, a stock

that's pretty rangebound, it's not bad.

It's not a bad thing. So, Nvidia here,

$29 per share and can actually see I

have a covered call here. So, I'm

running the wheel here and we can see

that I'm still in the process. But yeah,

if I want to start over, I would simply

go to the option chain here and go for

an expiration date. Let's use a shorter

term August 21st. I'm going to go to

sell put option and let's just jump into

the technical analysis to see what type

of strike price that we want to do. So,

I'm going to go to chart here and I want

to show you the strike price that I'm

going to be looking at for Nvidia. The

moving average is actually right around

the current value of the stock, which is

$28 per share. Um, but the bottom of the

Ballinger band is 190. Okay, so that's

pretty much here. You can also see the

stock is bouncing off of 193. Pretty

significant bounce actually. Little bit

of a pullback and then another bounce

pretty hard from 195. So my goal is

really to get as close to 195 as

possible. But if I go lower in terms of

the strike that I'm picking, the amount

of premium that I'm going to collect is

going to go lower and lower. So you want

to basically balance out within the

wheel strategy. So, if I go for 205,

like that's great and that's going to

have a high premium collected, but you

know, the chance of assignment here is

going to be a little bit higher. So, let

me click in here. It's a delta 40. Okay,

I'm going to show you how to adapt delta

later as well, but simply I think 40 is

going to be a little bit high for, you

know, kind of the breadand butter

strategy that I have. So, I'll go a

little bit lower here at 200. Okay, let

me expand this 200. This is great. This

is right around my peanut butter jelly

sandwich, whatever. You know, I'm

excited about this. I'm genuinely

excited about this because 33 delta is

great, but also keep in mind the 200

strike price if you factor in the

premium here, which is $6.50. And look

at that bid ass, man. It's beautiful.

That bid ass spread. Oh, I don't even

know how to say it. It's like bisumo,

whatever other languages you might

speak. Comment down below beautiful in

your language because this is beautiful.

This bit ass spread so tight, so good.

It's very small and difference. It's

only five bucks. So, if you take the

$200 strike price and you account for

the premium, your actual break even here

is going to be $193.50.

And based off of the technical analysis

like I showed you, that's great because

it's bouncing off of 195 hard. So, by

selling this put option to begin the

wheel strategy, I'm effectively getting

in under a support level. So, that is as

beautiful as it gets for what I am

looking for when I want to open up a

position. Now, the next stock that I

want to cover is going to be Nebius. Now

this is going to be a higher volatility

stock and this stock's down 4% just

today and in the last 1 month is down

12% just really really huge kind of drop

here dramatic drop and in 6 months the

stock is obviously up a whole triple

digits but there's a lot of volatility

here and I would keep your position

sizing very careful on AI stocks but I'm

not saying don't do the wheel strategy

on AI stocks I think they're great as

well so going to the technical analysis

here it's very hard to do technical

analys analysis on a stock that's up so

much like Nebius. The risk and the

danger on the stock is very high. So

there's not too much technical analysis

that I'm doing is basically when I'm

looking at an AI stock because they're

very momentum driven. I'm going to use a

small amount of capital. You know, I

would limit it to 3 to 5% of the

portfolio, which is hard to do on Nebia

since it is a more expensive stock. So

maybe you dial in the risk a little bit

higher. 5% is what I would limit it at.

But the whole thing is you want to learn

how to do this. So let me show you how

to fish. So let me go into Nebius. Okay,

you can see on my phone Nebius Group.

I'm going to go to trade options. And

because the stock has so much

volatility, if I go to August 21st here,

you can see just how wild the premiums

are. And if I open up 200, you'll see

that the implied volatility or IP is

142. Anything over 50 is high. This is

142. That is bonkers. That's next level

implied volatility, meaning that this is

a very risky stock. However, you are

appropriately seeing very high premiums

as well. That's why the premiums here

are also pretty much off the chart. So,

what you can do is you can actually

scroll a lot lower and be very very out

of the money. You can go for a very OTM

option because there's so much

volatility that these option premiums

are elevated. So, you can go

significantly out of the money. So, for

example, 150 here is a full $50 away

from the current stock price. Yet, the

premium here is still very, very high.

The bid ass spread is not as good as it

is for Nvidia, but the bid ass spread is

it's okay. I would categorize this as

like I would rate it 6 out of 10 bid ass

spread. Okay, you are losing your $30

$40 on the difference from the bid and

the ask. You can see here the delta is

actually 0.19. So the premium is very

significant yet the delta is actually

pretty low. This is what's so attractive

about trading the wheel strategy using

AI stocks is because of their high

implied volatility makes the premium so

juicy. I mean, if you want like a big

juicy steak, it's not going to really be

coming from those safer stocks, right?

Some of the safer stocks, like one that

I have in my portfolio is Walmart, and

I've been trading Walmart for years now.

My community has done extremely well

with Walmart. Yet, I don't really

mention on YouTube because it's not

going to get much attention. And it's

also not something that most people

even, you know, want to look at. They

want something more sexy and more fun.

And that's fine. I'm not judging you. If

you join my coaching, I'm going to work

on the boring stuff to get to

consistency and stability. But, you

know, that's up to you. you decide your

own risk preferences. If you're just

going to watch this YouTube video, then

keep this in mind. If you're doing this

on a more volatile stock, you want to

keep the position sizing appropriate.

Obviously, the more positions you have

in different stocks, the more diversity

you have in your portfolio and the lower

overall impact or volatility you will

see. That being said, a lot of AI stocks

are correlated to each other. Meaning

that when one AI stock falls, another

one is also potentially likely to fall.

I'm actually going to show you a chart

here of two, you know, stocks that are

in AI sector that, you know, what

happens when one goes down. I'm going to

show you that. So, let's wrap up with

this example. 150 cell put is still very

attractive even though it's very out of

the money. So, yeah, let me show you a

another stock that is probably similar

to Nebius. You're just in the AI space.

I'm going to show you how correlated

they are and why it's important to run

the Google strategy on different stocks.

So, let's go into here. I'm going to go

here into comparison and then I could

type in another ticker symbol. So, let

me go for something that could be

correlated with Nebius. So, I'm going to

go for like another popular AI stock

which is actually down a lot which is

Na'vi. And I'm going to just put this on

the chart right here. But now you can

actually see a pretty clear picture of

how similar these stocks are and how

much they move together. I can actually

put another comparison here. We can go

for another stock. I'll do APLD. I know

that's another like popular AS stock.

And you can see here how APLD actually

has a much lower volatility. Still kind

of looks similar here, but it's actually

quite Nvidia because Nvidia is the

leader in in AI stocks. Basically, it's

the biggest one. It's actually the

biggest company in the world at 5

trillion. And that makes sense that

Nvidia has much lower volatility. Has

been going pretty much sideways in

comparison to Nabitas and in comparison

to Nebius. But this is what I want you

to be aware of is that if you're running

the wheel strategy, you can pick stocks

that are not that correlated. So, for

example, let me get rid of APLD. Let me

get rid of Nvidia. And I actually want

to show you how you can just pick a

stock that's totally unorrelated. So,

let me get rid of that. And I'm going to

just compare McDonald's, which is a

stock that I like because it has crashed

pretty hard and it's at a 52- week low.

So, you can see here how like the

similarity here is just not that much.

Also, you can go to indicators and you

can actually see what the actual

correlation is by just simply writing

correlation here. So correlation

coefficient and I'll just do the 14

days. That's fine. Okay. So you can see

here that the correlation is actually

negative. That's actually interesting. A

negative correlation basically implies

that these two assets move differently

in opposite directions essentially. So

that's exactly what you want to see. If

you're trying to minimize risk and lower

risk in your portfolio, you're going to

want to look for some negative

correlation. I can go on and on about

this and I'd be more than happy to help

you personally build your own portfolio

based off the cash that you have, the

horizon that you have to reach your

goals or retirement. Anyways, you can

check out the top link in the

description. This is what I love to do

and I love to customize specifically to

someone's specific goals. All right, you

have seen three stocks. I'm going to

show you the fourth bonus stock after I

go over some more advanced techniques

within the wheel strategy just so you

can understand and actually use the

wheel strategy even on higher implied

volatility stocks that might be a lot

riskier. So to get there, we need to

understand how to manage the wheel

strategy, what to do if the stock goes

up, down, or sideways. Okay, so once you

actually got one of these trades on, the

question I get most often is, what do I

do now? What happens if the stock moves?

What happens if I'm in the money so

quickly? What happens if there's a lot

of time left and I went for a one month

expiration and the stock is just

standing still? What do you do in all

these scenarios? Well, let me walk you

through every single direction and

scenario that can happen so you can be

absolutely confident that you know how

to manage the wheel strategy in almost

any single situation because there is a

plan for each and every single

situation. And honestly, that's the

whole point of the strategy. You should

be very comfortable with it. I have been

coaching for the past 6 years. I have

over a thousand successful students.

Many of them have gone on to retire.

Many of them are generating their dream

income not to have to work anymore. And

a lot of that is actually not the risky

strategies. Although some of the

strategy videos that I have on this

YouTube channel, if you're subscribed,

might be a little bit riskier. Say leap

options or poor man's cover calls or

spreads or any of those exciting things.

But really, my bread and butter, what I

have been teaching for the last 6 years,

and I was originally first on YouTube

with was the wheel strategy. And that's

because when I learned the wheel

strategy, it had changed my life so

much. It finally gave me the confidence

to not have to worry about the stock

market fluctuation and really just to

focus on highquality companies. So,

let's start with the stock going up.

This is the easy one. If I sold a cash

secure put and the stock climbs, well,

that put that I sold loses value.

Remember, as a seller, I want it to

expire worthless. And if it stays above

my strike price, all that happens is the

option expires worthless. It never goes

below my strike. Therefore, it's not

worth anything to be exercised. The

premium I collected is mine and really

no shares change hands and I'm free to

sell another put option or I'm free to

do anything that I want with my capital

that is now freed up. Now let's flip the

equation. Let's say that we have already

had been assigned the shares and now

we're in the second stage of the wheel

strategy which is we have the shares, we

have a covered call. And if I already

been assigned shares earlier and I'm

sitting on a covered call, that's the

second half of the wheel strategy. If

the stock goes up, that means that my

shares will get called away at my strike

price and I will have to sell them at

the price that I actually already agreed

to. So, whenever I choose a strike price

and I am in the wheel strategy section

of covered calls, I must be happy with

the covered call strike price because if

it's in the money, I will lose my

shares. All right, so we know when to

sell puts, if it stays above our strike

price, nothing happens. However, if we

go to covered calls and it goes above

our strike price, we could do something

about it. we could actually end up

closing the option to give ourselves

more room for stock to go up. We can

actually adjust the strike price and

roll our strike price higher. So, let's

say that we have a stock trading for

$110 per share and that stock goes to

$125 per share and we have a covered

call at $120 strike price. Our strike

price is now in the money at $120 is our

strike price and the stock is $5 higher

than what we sold the strike price for.

If we are approaching expiration and we

change our mind and we don't want to let

go of the stock, we like the stock, we

don't want to sell it off, we don't want

to get exercised, we can actually close

out the $120 strike price. We can buy

the option to close or BTC order, buy to

close, and then we can open up another

option that has a higher strike price.

So, we can actually buy back the 120

strike price and we can sell something

higher, say the 130 strike price to

change. Now oftent times whenever I'm

rolling options, whenever I make this

change, I also add time to my trade

because time is so important in option

trading and time is money. So whenever

you add more time to the option, you can

actually get a lot more premium for it.

In fact, you can change the strike

price, move it higher, and actually get

paid for it. Let me show you what that

looks like. All right, so now I want to

go over an example that I have of a 110

covered call that I want to roll up so

you can understand how the rollup

process works, right? So, let's say that

you have solely covered call, but stock

now has rallied much faster than you

expected. Something similar basically

happened to me with Walmart. I have a

pretty large gain on Walmart. However,

my covered call is in the money. You can

see here I'm up $469,000 on Walmart

stock, but my covered call here is down

$39,000 and the strike price is 110, but

Walmart is at 114. So, I want to show

you how a roll would look like on this

because if you're short a call and it's

deep in the money, it can be pretty

difficult to roll. And I'll show you an

example of that. But first, I want to

show you an example of something that is

a little bit easier. Like here on

Walmart, I'm just a little bit in the

money. And I know this seems like a lot

of money, and it is a lot of money.

However, this is totally fixable because

Walmart is in the money for me by just a

little bit over $4 and less than $5. So,

if I click right here, you will see

Walmart call. And again, I'm down on

this position. So, what I'm going to do

is I'm going to click trade options. And

first of all, just note that the

expiration date is January 15, 2027. In

the ideal scenario, when I usually roll

an option, I typically want to roll it

when there's only 3 months left. And

because I'm making this video right now,

when it's like middle of July 2026,

there is about five, six more months for

this option until expiration. So, it's

not the best time to roll, but I'll

still show you a roll because the roll

will help you understand how you can

basically turn a losing position or

whenever you're in the money into going

to out of the money and actually

collecting a credit as well. So, let's

go to roll position. Okay, I'm going to

click new position here. And the whole

point of a roll is to add more time.

Rolling up simply means buying back a

stock that you already have an existing

covered call on and then just selling

another one at a higher strike price.

And usually I do that with a later

expiration date. The goal is to give

your shares more room to appreciate

while you continue to collect option

premium. Now, you're trying to improve

your position, not magically avoid risk.

So, I usually only consider rolling if I

still believe the stock has meaningful

upside and I'm happy to continue to own

it, which is absolutely the case for

Walmart stock right here. And actually

within my community, Walmart has been a

great stabilizer. It's a stabilizer. I

call it that, which is something unique

you might have not heard before, but a

stabilizer is a hydro stock that is big

portion of your portfolio that acts as a

stabilizer for other volatile names in

your portfolio. So even when other

stocks are very volatile, Walmart based

on my own research has been an extremely

good stock to own. And of course, I'm up

almost half a million dollars. So it has

proven to be a great stabilizer and

anchor within my portfolio. So if I'm

perfectly happy to own the stock, well,

you know, basically I want to adjust my

original strike price. So my strike

price right here is 110 and my goal is

to move it higher. So you can see here

the current position is 110 and the cost

is $12.50.

And if I end up buying back this option,

right, and going for a different option,

I'm going to choose a different

expiration date. Okay? I'm going to go

for a future one. So, if I change the

date here to March, then you'll see the

prices have changed. If I go to June

again, the prices have changed. Now, I'm

just going to use June for this example.

If I were to go from my current

expiration or 110 to 115 and I click

this right here, you will see that

essentially I can go from 110 to 115 and

I'm going to be adding time. So, the

amount of time that I'm adding is 153

days. Okay, so I'm changing the

expiration date and that is the most

important factor because time is money

and because there's more time to this

option then it is worth more money at

the same strike price and in this case

it's even worth more money at a

different strike price. Okay, so a

different strike price here is 115. So I

can go from 110 strike price to 115 and

I can adjust this by $5. Now, this role

would include me closing the 110,

selling the 115, increasing my strike

price by $5, which gives me $5 more of

appreciation. And actually, Walmart is

trading for $114.80.

So, this option is now out of the money.

So, I can turn an in the money option,

which is $110 on a covered coal, into

out of the money, which is 115 using a

roll. So, this roll right here could

change the dynamics of the wheel

strategy. And essentially, this one is

pretty easy to roll. And that's because

it's only really slightly in the money.

So that's why you want to roll early.

Essentially, as soon as your covered

call goes into the money, if you still

want to benefit off the stock, if you

still want capital appreciation, then

pretty much the best thing that you can

do is roll earlier because once an

option is already deep in the money, it

can be a lot harder to roll it. I'll

show you what I mean by that. And we'll

finish off this example. I'll show you

what a deeper in the money covered call

is going to be like, and it's going to

be a little bit more difficult here.

Again, total credit. I'm going to

collect total credit of $16,000. getting

a neck rate of $153 per contract. And

just adding time to this trade helps you

completely adjust. You know, take this

from an in the money to out of the

money. I think that's pretty much enough

for that. Let's go into a deep in the

money example because I really want you

to understand that if you do this

earlier, then you'll be in a much better

situation. So, let's see a option that I

have that's kind of deep in the money

that's really against me, which will be

Google. But before I show you Google, I

actually want to show you an interesting

case, which is Palanteer. So Palanteer

is a stock that I've had in my community

for a long time and because I'm very

good on Palenteer's valuation when it

had been around $200 per share. I ended

up doing a deep in the money covered

call. So this is a little bit more

advanced and I just want to throw in

this golden nugget right now as I'm kind

of taking this unscripted video and I'm

doing this live is Palanteer. The reason

why it is up $169,000

is because you can actually use a deep

in the money covered call as a hedge.

Okay, let me say that one more time. A

deep in the money covered call, you can

open it up already deep in the money and

use that as a hedge because if the stock

falls down, it doesn't really matter

unless it falls down below your strike

price. And for example, a option that's

deep in the money is going to have a lot

of intrinsic value, which we covered

earlier in this course, a lot of

intrinsic value. And that intrinsic

value is yours, you know, regardless

because you've sold it. And then in the

money option is going to be, you know,

worth a potential lot of money depending

on how much it is in the money. So if

it's, you know, 150 strike price and the

stock is at 200, well, of course option

is going to be worth at least $50

because it's already $50 intrinsically

plus not even counting all the extrinsic

value like ton volatility. So anyways,

um I can go a little bit deeper later in

this video or in the one-on-one coaching

if you decide that you want to do

coaching with me. But anyways, a deep in

the money covered call can be very very

lucrative as you see $169,000

gain. But let's get back at the topic at

hand which is still the covered call

which has gone against me which is going

to be Google. Okay, Google here is a

very interesting position because it has

gone against me quite a bit actually. So

you can see here that it's against me

$118%, right? It's I'm down total return

31 basically $32,000. But here it's not

going to be as easy because Google is

trading for $353 per share and my cover

call has a strike price of 300. So I'm

in the money by $53. With Walmart I'm in

the money by four. So it's pretty easy

for me to roll. And this is not going to

be the same thing. So, if I go to roll

position, you'll see real quickly how

this is going to be a much more kind of

difficult situation to get out of. So,

check this out. If I take this $300

covered call that I had that's currently

deep in the money and I wanted to adjust

it and roll this option to a future date

such as January, then I can move from

September to January, adding about 3 4

months to this trade and I can adjust

the strike price. However, you can see

that I'm not going to be able to fully

adjust. You can only see by the premiums

that I'm scrolling through here, they

are not going to be more than $59. So,

if I wanted to go up to $355, which

would be out of the money, it's only

$37. And the value to close it is $59.

So, there's no way for me to completely

fix this option. But the good news is I

don't really have to. I can still do

really well and I'm happy with the

profit if I just move up and have more

capital appreciation and actually

collect a credit. So, I'm going to show

you now the difference between

collecting a credit versus a debit. So,

first of all, if I want to move from 300

to 305, sure, you know, that's easy. I

get a total credit of $8,000 and I have

some extra appreciation. It's not a

whole lot, but it's five extra dollars,

which is not bad. Plus, I get credit,

right? So, obviously, that makes sense

right there. But the bigger thing is

when would I be comfortable paying a

debit? And I'll show you what that looks

like. So, if I go for January 15 and I

move up to say, let's go for 325. Okay.

So, 325. This is very interesting

because this is probably, you know, the

first time you're seeing a total debit

or maybe now you want to see how this

would work. Well, a total debit here is

$4.30. Okay, that's per contract. We're

going to focus on per contract right

now. $4.30 is basically what I have to

pay in terms of a debit upfront to

basically, you know, close out the $300

call option and shift it to 325. Well,

would this make sense? Honestly, this is

actually a great trade in my eyes

because if I have to pay $4.30, 30.

Okay, that's the amount of money that

I'm paying, which is a total of $4,300.

That's how much I'm paying. But the

benefit that I get is going to be 10

contracts worth of an increase of $25,

which would be $25,000. So, I have to

pay $4,000, but I get a benefit of

$25,000. That is something that I am

interested in. So, look, I discuss a lot

more when it makes sense to roll for a

credit and when it makes sense to roll

for a debit inside of my community. For

this video, I'm not going to dive too

deep into the mathematics as YouTube

could potentially give me some issues

around this concepts. So, let's move

over to the next section, which is a

sideways market for the wheel strategy.

We have discussed what would happen in

an up market. So, an up market for the

sellput positions, they perform very

well. They expire out of the money. For

an up market for, you know, the covered

call side of the wheel strategy, either

get out of the wheel strategy and you go

full circle and start over again, or you

can roll up as I showed you there.

However, let's now discuss a sideways

market because one of the biggest

misconceptions about the wheel strategy

that you need the stock to keep going

higher. And the truth is you really

don't. In fact, one of my very favorite

market environments is a sideways market

where it just kind of goes a little bit

up, a little bit down. And that little

bit of volatility is actually great

because imagine that you own a great

company trading for around $100. And for

the next 6 months, it balances between

$95 and $105 without really going

anywhere. Well, most investors get

frustrated because their stock hasn't

really appreciated much. But as a wheel

trader, that can actually be a fantastic

outcome. Why? Well, because every few

weeks I'm selling another option,

collecting another premium using the

wheel strategy. If I put option expires

worthless, I simply just sell another

one. If I'm assigned shares, well, I

move into step two of the wheel

strategy, which is I sell covered calls.

If those covered calls expire worthless,

great. Then I get to sell more covered

calls. And if they don't expire

worthless and now the options in the

money well I can let it get assigned get

out of the strategy or I can use rolling

as I discussed in the previous chapter

in the timestamps of this video course

right so every cycle gives me another

opportunity to generate income while the

stock moves sideways and that's why yes

there is a risk that stock can move

sideways and a stock investor might not

make any money but a wheel trader might

actually have a decent time in a

sideways market if they don't really get

exercise whether it's on selling puts

and even if they get exercised on

selling puts maybe they don't get

exercised on covered calls and being

rangebound is actually a great

experience because they are option

selling. So selling puts and covered

calls is the premium generating kind of

vehicle there, right? So think of it

very similar to owning a rental

property. You don't really need the

house to go up in value. You don't need

your $150,000 house to be at $300,000

house in value because what you can do

is every single month you will collect

rents, right? You have tenants and you

collect rent. So with the wheel

strategy, those option premiums are very

similar to collecting rents on the

capital while you wait. So even if your

capital is not going up, you are still

collecting rents along the way. And

that's why I love this strategy so much.

Specifically, I'm using this as a

retirement strategy. And that's why so

many people in my one-on-one coaching

are often times folks that have a good

job, that have a good income, but they

don't really have a clear defined plan

on how to retire because, well, they

have some assets, but they don't have

enough cash flow to sustain their

monthly expenses. And the wheel strategy

is a great solution for that. That's why

I don't really mind when a highquality

stock really takes a break whenever it's

going sideways. And sideways movement

often means that I can collect multiple

rounds of premium instead of watching a

stock shoot past my covered call in one

single week. You know, when a stock goes

up so much in a short amount of time, I

pass my covered call, that's fine, but

you know, then I have to run the wheel

strategy all over again. But when the

market's going sideways, actually even

less work for me. So, of course, this

doesn't mean that every sideways market

is perfect because if a company is

deteriorating fundamentally, well, that

is a different story because, you know,

ideally, you don't want to be in a stock

that just going sideways forever even if

the premium is good. oftentimes the

wheel strategy is attractive because the

capital appreciation that you have in

the covered call portion of the wheel

strategy. So I only want to run the

wheel strategy on businesses that I am

happy owning long-term and I do think

they're going to go up even though I

might be modestly bullish. If I'm mega

bullish then well the will strategy is

not the best for that because in the

covered call situation you might be

frustrated when your covered call is you

know deep in the money especially if

that happens too quickly. Now, buy and

hold investors get paid when the stock

moves, while wheel traders get paid

really when the stock doesn't have to

move that much. Okay, so that's the

sideways market. Now, let's talk about

the down market, which is oo the town

market. If there's one thing I hope that

you remember from this entire video is

this. Please don't sell puts on

companies just because the premium looks

attractive. It's like a pretty woman in

a really pretty dress, but oh man, you

might get in a lot of trouble with that,

right? So, I've seen too many people

chase the highest premium, get assigned

into a business they never want to own,

and then they spend months hoping that

it comes back. And I mean, I don't want

that happening to you. If this strategy

is going to work over the long run, the

company has to come first and the option

has to come second. If this one sentence

saves you from that bad trade happening

to you, then I'm happy with this video

and it's well worth it spending all

these hours on it. So, what happens if

the stock or even the entire market

starts going down while you're running

the wheel shop? Well, first, very

important, don't panic. That possibility

was always part of the plan. If you're

only comfortable owning the company when

it's going up, well, then you never

really wanted to own it to begin with,

right? You were just hoping to collect

the premium, and the strategy probably

will end up disappointing you in that

case. The investors who do well with the

wheel aren't the ones who avoid every

pullback. They're the ones who choose

businesses they still believe in even

when these businesses temporarily fall

and do have pullbacks which inevitably

will happen. So instead, take a step

back and ask yourself one simple

question. Has the business actually

changed or has only the stock price

changed? Those are two very different

things. If the company still executing

growing revenue in your original reason

for investing hasn't changed, then hey,

step back a little bit. Put your

emotions to the side. I know that it can

get in the way. and then just accept

that the stock is going to go lower in

the short term. Collect the premium and

continue to run the strategy and don't

be too concerned the wheel strategy

isn't working suddenly. So, let's say

that you get assigned and the shares are

significantly down. Now that you own

shares, this is where the second half of

the wheel begins. Rather than sitting

there hoping that the stock rebounds, I

will immediately look to start selling

covered calls and continue generating

income via selling premium while I wait.

That's why it's called the wheel. It

doesn't stop just because you were

assigned. And I know what you might be

thinking right now. You might be

thinking, well, what if it's down so

much that I have to sell covered calls

that are, you know, essentially below my

average cost. And I will tell you right

now, that is okay. Because if you sell a

covered call below your average cost and

it goes into the money, you can always

use the rolling strategy and technique

that I just showed you. You can always

move the strike price higher. But

sitting there doing nothing indefinitely

is honestly not the best way to go

around it because sometimes stocks can

fall. they can crash and you know let's

say a stock comes crashing down and this

happens even to good companies. It went

from $80 down to $45 and now you're like

well I can't sell covered calls because

it's below my cost basis. What are you

going to do? Wait potentially 2 years

for the $45 stock to come back to $8 per

share after it has crashed so much. No,

you still ideally want your shares to be

as productive as possible. Now this

situation can depend a lot because it

also depends on technical analysis which

I'm going to show you very soon in this

course. So, it can depend on technical

analysis and sometimes you don't want to

sell a covered call. But usually,

probably 85% of the time, I am selling

covered calls and I'm not waiting for

the stock to recover if it has gone down

a lot. If you sell a covered call below

your call basis and it goes into the

money, then review the rolling technique

I taught you several minutes ago or

toggle the timestamps below to find the

rolling covered call example. Again,

let's move over into the next section.

Let's talk about position sizing. If I

had to pick one lesson that has

protected my portfolio more than any

technical indicator, more than any

charting pattern or even option

strategy, it would be position sizing.

You can survive being wrong in a trade.

What you can't survive is being too big

when you are wrong. Think about it this

way. Imagine you find the perfect

company, great fundamentals, strong

growth, beautiful chart, and excellent

premiums. Does that mean that you should

put half your portfolio into it?

Absolutely not. Definitely not. That is

way too dangerous and way too risky.

Even the best companies can disappoint.

Earnings can miss. Markets can panic or

unexpected news could send a stock down

20% overnight. That has happened. I have

seen many people blow up portfolios. I

never want one position to determine

whether I had a good year or a bad year.

That's why I decide my position sizing

before I ever look at the premium. The

premium doesn't tell me how much to

invest. My risk management tells me how

much I should invest. So, you want to be

diversified into different companies and

that can mean different things for

different portfolios. So if you have a

bigger portfolio, you want to be in 10

to 15 positions. If you have a smaller

portfolio, well maybe you don't have the

same kind of fortune of having a big

portfolio. You might have less diversity

in your portfolio. But it's a very

important to diversify across different

companies and across different sectors.

I always look at diversification,

capital allocation, and position sizing

on an individual basis because different

people will have different risk

tolerances. But I'm going to do my best

right now and go over different common

mistakes that you know will generally be

applicable to most portfolios. And in

fact, these common mistakes will

probably apply to 99% of people. So

let's now jump into this really

interesting portion of this course,

which is common mistakes. And if you

don't do these common mistakes, you're

going to have a much better time

utilizing the wheel strategy. Now, these

mistakes can literally drain accounts.

the ones that I've made myself over

years and the ones that I watch other

people in my community make over time.

Even when I warn them, sometimes people

just don't listen. They have to go

through some hard times themselves. So,

you know, hopefully you learn from this

video and you don't have to go through,

you know, the hard times yourself. So,

for each one, I'll show you what the

mistake is, why it's so tempting, and

exactly what to do instead. First one is

the most common one by a mile. It's

selling your puts too close to the money

or basically at the money. This just

means your strike price is sitting right

around the stock where it's currently

trading at. Almost every beginner does

this. And I get why. The closer your

strike is to the current price, the

fatter the premium. It's juicy and it's

tempting. Your eyes go straight to the

biggest number. And a strike right under

the stock is always paid the most

because it has a higher risk. It has a

higher delta. It feels like you're just

being efficient. It feels like you're

getting all this premium. And you might

even be thinking to yourself, why would

I collect less premium upfront when I

could just collect more? And here's what

the premium is actually costing you. Say

a stock is trading for $100. You sell $1

below at a 99 strike and you collect a

big fat juicy premium, but that option

probably has 45 even 50 delta, which

remember is roughly the market's

estimate of the odds it finishes in the

money. So you're really looking at close

to a coin flip that you get for

assignment. It's roughly 50/50% chance.

Now drop your strike price down to 90

put option instead. The premium is a lot

smaller. Yeah, maybe it's half or even

less than half the premium, but the

delta will go way down. Say 20 delta,

meaning roughly one in five chances of

assignment. And now the stock has to

fall a full 10% before you even in

trouble. That gap between a coin flip

and a one in five shot is enormous. And

you're handing away some premium. But

I'm telling you, in most cases, it's

well worth it to go for less risk and

less premium because you're going to

have a better riskreward ratio. And the

assignment odds are only half or even

less than half of a 50 delta option if

it's 20 delta or so. Right? The bigger

problem with selling right at the money

is that even when it goes fine, you get

assigned. You've bought the stock at

basically today's price. No discount, no

cushion. So the second it keeps

dropping, you're underwater essentially

from potentially like day one or day

two. So compare that to a trader who

sold a $90 put option and if they get

assigned they brought the same company

10% cheaper and their cost basis is even

lower than that after they have

accounted for premium. Same strategy,

same stock but one starts in the selling

puts phase in the hole and the other one

starts with a real edge. Over dozens of

trades that difference compounds into a

completely different account and most

importantly that account is going to

experience a lot less volatility. So

here's what I would actually do. I'm not

hunting for the fattest premium. I'm

picking a strike with sensible odds and

real room underneath. As a general

guide, I like something puts somewhere

in the 30 to 35 delta range. And when I

say 30 to 35 delta range, I mean 0.3 or

0.35 delta range. That is my sweet spot.

In my opinion, 20 is a bit too low and

40 is a bit too high. But I'm going to

show you how I adapt delta later on in

my delta system towards the end of this

free course. I'm going to show you how I

adapt the strategy with higher

volatility stocks and the higher

volatility AI pick that I had in this

video. But again, coming back around 30

delta gives me a comfortable probability

that the put simply expires and I get to

keep the premium. And if I do get

assigned, I'm going to be buying the

stock at a genuine discount to where it

was trading at, you know, compared to

the stock price. So, is the premium

smaller than selling at the money? Of

course, it's smaller. But is the amount

of cushion that I get and the discount,

the value that I get worth it? I believe

so. Because I'm not just gambling on a

coin flip for it. I'm collecting a fair

amount of premium to buy a company that

I like at a better price. And that's the

trade I want every single time rather

than a higher risk trade that has higher

premium but has less certainty. So the

next common mistake is where chasing

premium actually gets people hurt and it

deserves its own spot. selling puts on

garbage companies because the names

throwing off the very big premiums for

usually the ones in most trouble.

Beatating down meme stocks, tiny

speculative names, companies burning

cash with no real path to profitability.

Their premiums are enormous and people

get suckered in by their yield without

ever stopping to ask what they're

actually signing up for. And what you're

signing up for is ownership. Never

forget that selling a cashsecured put is

a promise to buy that company if it

fails. So the real question isn't how

big is the premium. It's do I actually

want to own the business at the price

that I'm selling the strike price

accounting for the premium that I'm also

collecting. This is where you have to

separate two things that look identical

on a chart but could not be more

different. A great company that

temporarily is on sale versus a bad

company that's cheap for a very good

reason. A quality business that drops

because the whole market pull back is an

opportunity and I'm happy to get a sign

on a company like that. But a business

that's fallen because it's generally

breaking is a fallen knife and the

premium is just bait to get you to catch

on. So how do you tell them apart? You

actually have to look under the hood. Is

revenue growing or is revenue shrinking?

Is the company profitable or at least is

clearly on a path to become profitable

or are they burning cash at faster and

bigger rates? And if anything bad

happens in the market such as a

pullback, they have enough cash on their

balance sheet or are they pretty much

strapped with lots of debt? And last but

not least, you also want to look at

qualitative factors. Does this business

actually have a product or a service or,

you know, a software that actual

customers want? Are these customers

doing more business with this company?

Or is this company just hype? Is it hot

on a narrative, but are they not

actually providing any value for their

customers? I'm not asking you to become,

you know, like a Wall Street analyst or

anything like that. Although I analyze

stocks every single day. I spend

multiple hours of research and in my

community, I say which stocks I think

are highquality stocks. You just have to

follow the some of the simple rules that

I already mentioned. At the end of the

day, it's also pretty simple. Just want

to ask yourself, would I be happy owning

the stock? Or if it goes down to this

price, would I be upset that I have to

own this stock? If it's the first case,

you're fine. It's the second case,

there's no point of doing the wheel

strategy at all. The next one is a

purely psychological one, and I watch

people do it all the time. Panicking on

their winners. Yeah, that's right.

Panicking on the stocks that they're

winning on, and when their wheel

strategy wins, they're actually not too

happy. Let me explain to you how that

works. So, picture this. You sold the

put option. Trade goes beautifully.

Thing is perfect. The option has already

lost most of its value and you're

basically at the finish line and smooth

sailing, right? Well, then the stock has

one ugly red day. The option ticks up a

little bit. You panic. You basically

slam your brakes and then you end up

getting out of the position as soon as

you see a little bit of pullback. The

honest truth is if the option is out of

the money, a majority of the time I do

not make any changes. Just because the,

you know, red candle or some technical

analysis that you're looking at hasn't

gone perfectly and the stock looks like

it's going to come crashing down doesn't

mean that it's actually going to come

crashing down. You don't really need to

take more action than is needed, right?

So, you don't want to overtrade. I see

this mistake way too often. Whenever the

stock pulls back a little bit, their

sell put is fine. It's out of the money.

Now, all of a sudden, they start

thinking differently about the stock.

But what if the stock is broken? Maybe I

don't want the stock anymore. That is a

huge mistake. Once you sold the put,

time is your employee. Every single day

that passes, data eats away at the

options value and pushes the trade in

your favor. As long as you don't do

anything, then the option is going to

completely expire, worthless as long as

it stays out of the money. And again,

even if it goes into the money, that's

not really a problem. If you sold a put

option on a stock that you wanted to own

anyways. Okay, so the next one is also

kind of a psychological one, which is

basically take emotions out entirely by

deciding your exit point before you ever

enter. A lot of people enter a trade,

everything's going fine. As soon as kind

of things don't go according to plan,

all of a sudden they are thinking about

exiting the trade. But if I had asked

you did you want to exit the trade at

this level when you had entered into the

trade, if I can go back in time would

say, no, that's not my plan. I think

this is going to happen. And then all of

a sudden, your view changes. But your

view doesn't change based off of off of

anything fundamentally changing in the

company. Your view could change based

off of just your own emotions. So again,

this is a psychological one. I know when

I place the trade, what would make me

close it early, a profit target, a

specific event, and then I let that rule

make decision, not my nerves at the

moment or how I'm feeling. You can

pretty much tell that you have this

issue if you're always refreshing your

positions every hour and seeing, you

know, where they're going up and down.

Don't judge the quality of the wheel

trade by whether you were signed or not.

Before we jump into technical analysis,

I want to mention something that's often

overlooked. Finding a great company is

only one piece of the puzzle. The bigger

challenge is figuring out how the

position fits into your overall

portfolio. Questions like, "How much

exposure should I have to one sector?

How much cash should I have to keep

available? What if multiple puts get

assigned during a market correction? Am

I actually diversified or do all my

positions move together?" These are all

the kinds of decisions that separate

placing individual trades from managing

an entire portfolio. We're not going to

dive deeply into that in this video

because it's a much bigger topic. It's

something that I spent a lot of time

working through with my members inside

my coaching community using real

portfolios and real positions. I can't

really do justice by going over a couple

examples because they are unique to your

own portfolio. For now, let's focus on

the next step, which is learning how I

use technical analysis to decide when to

sell a put option and not just what

company that I want to own. So, we're

going to use American Airlines, but I'm

also going to do some technical analysis

on Robin Hood as well for you to see two

different stocks for this technical

analysis portion. So, the reason why I'm

using American Airlines is because I've

been trading American Airlines for over

6 years now in my community and

specifically the past 5 years of stock

has actually done nothing. So, it's

extremely valuable as a company to run

the wheel strategy on just because

whenever a company is like bouncing up

and down, that's actually not a bad

thing at all for the wheel strategy. But

anyways, let's go to the chart right now

and I'm going to show you the different

technical indicators that I look at and

which ones are important for me. So, we

can first of all go over RSI. And RSI is

the relative strength index. And this is

a technical indicator used in trading to

measure the speed and strength of price

movements. So, you can see right now

that it is at 51 and 51 is right at the

middle. RSI helps traders identify

whether an asset may be overbought, so

potentially due for a pullback, or if

it's oversold and potentially due for a

rebound. If the RSI is right at 50, that

indicates neutral momentum. However, if

this RSI is 70 or above, that is often

considered overbought and buying

pressure has been very strong in the

price may be due for a correction. So,

whenever RSI is high, basically it's a

little bit expensive. And if RSI is low,

such as 30 or below, that is considered

oversold. So selling pressure may have

been way too strong and now the stock is

due for a bounce. Keep in mind, in a

strong uptrend, the RSI can actually

stay 70 or above for a longer period of

time. And in big downfalls where the

market is very bearish, the RSI can

remain below 30 for a significant amount

of time as well. So you don't want to

use RSI just by itself. You also want to

combine it with other factors. My very

favorite indicator is Ballinger band.

And this is the most important technical

indicator that I have taught for years

now to literally thousands of students

that has made the biggest difference in

terms of basically when to use the wheel

strategy, how to select strike prices.

The bowlinger band is actually dictates

for me the strike selection as well. So

bowlinger band is a technical analysis

indicator that helps traders understand

volatility and whether a stock is

trading relatively high or low compared

to its recent average. A bullinger band

consists of a middle band. So you can

see here that the middle band is

essentially I'm going to have to scroll

in here because it's a little bit tight.

It's right the moving average. Oh wow.

It is the moving average pretty much. So

I can't even expand the bowlinger band

here. You actually can't even see the

bottom of the bowlinger band here

because it is the moving average. But

anyways, the middle of the bowlinger

band here is actually 1683. Excuse me.

It's this line right here. So this is

the middle of the Ballinger band. The

top of the Ballinger band is 1879. And

then the bottom of the Ballinger band is

being covered by the moving average. I

can actually get rid of the moving

average, but moving average is very

important as well. Moving average tells

you on average for the past whatever

time period you're using. So for me, I'm

using the 50-day moving average. You

know, what is the price that the stock

has been for the past 50 days on average

when they take all 50 and then they

divide it by they add it all up and then

they divide it by 50. That is basically

the average. And that's how the line

here is moving. It's moving up because

American Airlines continues to kind of

go up. So the moving average has risen

with this stock being elevated. But the

bottom of the bowlinger band is roughly

1470 something as well. But anyways, the

whole point of the bowlinger band is it

tells you whether it's in the middle

which means that the stock is pretty

much you know valued at what it should

be valued at or if it's at the upper end

of the bowlinger band that would give it

a two standard deviation or the bottom

of the bowlinger band is also a two

standard deviation. A standard deviation

is essentially how unlikely something is

to happen. Okay, so think of standard

deviation as one standard deviation away

would be about 68% of the data. Okay,

one standard deviation away is not that

big of a deal. It's basically 2/3. Okay,

two certain deviation is 95%. Okay, so

this is called a bell curve in

statistics and the more standard

deviations you go out basically the less

likely something is to happen. Now the

good news is at two standard deviations

that's already 95%. Three standard

deviations is 99%. So this is a two

standard deviation bowlinger band. And

essentially this is capturing 95% of

what the stock should be doing. If I

were to change the bowlinger band to

three, you'll see that this is going to

expand. So if I go for three here, this

is now going to capture in 99% of the

data. So you can see it's about to

expand. So I click done here. You can

see now that the bowlinger band top it

has risen almost to 20 and the bottom

has fallen almost to 1387. So series

deviation really explains the

variability of what can happen right to

the stock and bowlinger band is not only

used in stock trading it's used in many

areas of life whether it's human hike so

human height is on a bell curve as well

or standard deviation curve and many

many other things. So here the bowlinger

band tells me where the stock is likely

to trade. I'm going to change this back

to two because I just simply don't use

three. I think three is just overkill

and it's not that useful. But to get to

the conclusion, if you're running the

wheel strategy and you're selling puts,

you would want to sell towards the

bottom of the bowlinger band. That would

be a great indicator. If you're selling

covered calls and you don't want to get

rid of the stock, you would ideally sell

closer to the top of the bowlinger band.

The bands automatically expand and

contract depending on volatility. So, if

the stock is hugging the upper bowlinger

band and it's running 15 to 20% higher

in a short period of time, well, I would

usually become more selective. I don't

really want to run the wheel stock on a

company that would be up 15 or 20% and

it's at the top of its bowlinger band

because that would indicate that the

stock is overbought and it's pretty

expensive. So, I would not want to start

the wheel strategy by selling puts on a

stock that's already up so much and at

the top of its bowlinger band right

here. Basically, it's right at the

middle of the bowlinger band. I would

call American Airlines fairly valued

here. And actually, whether you're

selling puts or covered calls, you would

be pretty indifferent. So, you would be

able to run the wheel strategy by simply

selling puts here. Let me scroll in. For

example, if the stock is at 1631, right?

You can sell some put options and you

can go for something around 15550

and the premium subtracted from the

strike price would probably get you very

very close to the bottom of the

bowlinger band. And honestly, you don't

even have to be that good. You can still

sell puts right at $16 just because

based off technical analysis, the stock

is not expensive, right? The RSI is not

70. The stock is not at the top of the

bowlinger band. So, anything around the

middle or even lower than the middle is

great. Now the bowlinger band in of

itself is also just an indicator. So at

the end of the day the stock market

moves based off of emotions, herd

behavior, psychology in the market,

fundamentals of a company and

technicals. Okay? So I want you to keep

that in mind and whenever you're using

bowlinger band definitely use it as a

strong indicator for price action and

also combine it with the RSI. So if the

bowlinger band here was, you know, very

tight and American Airlines was above

the bowlinger band, but the RSI was like

30, right? That means high bowlinger

band, RSI low. Those two things usually

don't happen. But if that was the case,

that would be a very, very weird

situation. It would be difficult for you

to make a decision on, you know, what

strike to really select for the wheel

strategy. But if it's at the bottom of

the bowlinger band and the RSI is low,