Trading Strategy With A High Win Rate - Why I LOVE Trading "The Wheel"

As traders, you have to accept that you're going to take losses...but it doesn't mean we like it! So you're constantly on a hunt for a way to improve your edge, with a strategy to increase your win rate. This is exactly why I absolutely LOVE trading "The Wheel."

So three months ago, I started with $50,000 in a tastyworks margin account. To this point, I've realized: $11,329 or 22.7% in profits. Not too bad, if do say so myself. Now, IF I can keep this up that would be 22.7%* 4 = 90.8% per year. And I think that's pretty impressive for any trading strategy!

So are these SRC profits? Short answer, YES! So let's take a quick look at the strategy:

"The Wheel" - Overview:
1) Pick a stock that's going sideways or slightly moving up
2) Sell a Put Option, i.e. you have to buy the stock at the strike price
3) Collect premium and buy it back when we see 90% of the profits
4) If we get assigned, i.e. we have to buy the stock, we will sell Calls
- We have to sell the stock at the strike price
5) Collect premium on the call and we buy it back when we see 90% of the profits

So with that overview, we can answer the three key questions a good trading strategy answers:
1) What stocks or options to trade
2) When to enter
3) When to exit

If you want a more in-depth explanation of "The Wheel" strategy, here is a link to the playlist: https://www.youtube.com/playlist?list=PLBa3sAx-Io2nosgosERUhIZwzvIgD-3Vq

Now let's take a look at some recent trade examples. First, I want to look at a trade in DOW. At the time of this trade, I've been in for two days. What I'm looking at is that DOW will stay above $45.50 Put for two more days. And looking at the chart you'll se it would have to fall a long way before it gets there. For this trade, I'll collect $44 per Option and I sold 4 of them which would equal: $176. This might not seem like a lot, but it was high probability and only took a couple of days.

Here's another example of a trade I still have on in KSS, where I sold the $18.50 Put for $15 per Option and I sold 13 of them giving me: $195 in 7 days.

Another trade example is in IBM where I sold 2 of the 115 Puts for $43 per option giving me: $86 in 3 days

Now if IBM were to dip below 115 before expiration, could I get assigned? Of course, but that's part of this strategy. And that has happened a few times already. Let's take a look at those trades in AAPL, TQQQ and TRGP. With all three of these I was assigned shares, but as you can see those happened to be the trades where I made the most money. That's why I don't mind when that happens, because I'm picking stocks that I wouldn't mind owning in the first place.

So now, lets discuss where things can go wrong with this strategy:

How Can You Mess This Up?
1) Picking The Wrong Stock
2) Picking The Wrong Strike Price
3) Picking The Wrong Expiration
4) Not Getting Enough Premium Per Day (PPD)
5) Not Knowing What To Do When You Get Assigned

I hope this helps! P.S. Right now, I'm running a special on my "Power Income Alerts" where any time I take a "Wheel" trade in my personal account, I'll send you an alert. You can try it out for 30 days for just $1: https://bit.ly/31zXTJX

#tradingstrategywithahighwinrate #highwinratetradingstrategy #besthighwinratetradingstrategy
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Видео Trading Strategy With A High Win Rate - Why I LOVE Trading "The Wheel" канала Markus Heitkoetter