Most people say wheeling is a good way to generate income so long as you don't mind holding the underlying. So I started wheeling a month ago and have been doing okay so far.
But I'm wondering if I should try to time the market when wheeling like some option sellers are suggesting (only selling csps on red days and CCs on green days).
In my 10 years of experience as an investor, I feel like it's almost impossible to time the market, yet it feels like these people whose goal should be playing it safe and generating steady income are trying to make the riskiest plays possible.
Am I completely missing the point of this strategy?
Is wheeling supposed to be a safe strategy?
byu/ga643953 inoptions
Posted by ga643953
4 Comments
Premium will be higher selling CCs on green days and CSPs on red days and then buy back CC on red day and CSP on green day
It works great until the stock dumps harder than expected.
It’s riskier than owning treasuries especially if your only goal is cash flow, but not any riskier than owning the underlying stock outright.
You are basically switching sides at the worst possible time.