The wheel strategy explained: sell cash-secured puts, take assignment, then sell covered calls. A structured income loop with realistic returns and strict discipline.
The wheel strategy explained: sell cash-secured puts, take assignment, then sell covered calls. A structured income loop with realistic returns and strict discipline.
TL;DR The default covered call position sizing rule is 3 to 5 percent of total portfolio per single stock and 15 to 25 percent per broad ETF. No single sector should exceed roughly 20 percent of the income sleeve. Typical retiree portfolios hold 10 to 18 covered call positions, which captures most of the diversification… Continue reading Covered Call Position Sizing: How Much Capital Per Trade?
