$10,000 – $25,000 Range: Scaling the Wheel

How to Run the Wheel Strategy: Both Variations Unlocked

At this level, you're moving beyond single positions and beginning to truly scale your Wheel Strategy. This options wheel strategy guide shows you how to run the wheel strategywith multiple positions. You can run multiple positions, choose between Traditional andlong term wheel strategy variations, and generate meaningfulpassive income options wheel income. This is where wheel strategy automationbecomes highly valuable.

Traditional Wheel (Multiple Positions)

With increased capital, you can run the Wheel on 2-3 different stocks simultaneously, diversifying your income streams and reducing single-stock risk.

Recommended Stock Characteristics

  • Stock Price: $50 - $200 per share (allowing for 1-2 contracts per stock)
  • Market Cap: Large-Cap (e.g., $50B - $500B)
  • Characteristics: Blue-chip, highly liquid companies with strong fundamentals. Focus on sectors you understand well.

Example Portfolio

Run 3 positions: Stock A ($100/share), Stock B ($70/share), Stock C ($150/share). Each position generates $200-$400 per cycle. With 2-3 cycles per month, total monthly income: $1,200-$3,600 (5-15% monthly yield on capital).

Long-Term Investment Wheel (Perpetual Hold)

If you own 100 shares of stocks you never want to sell (e.g., for tax reasons or deep conviction), this strategy is ideal. You only sell covered calls, and actively manage them to avoid assignment.

Example

You own 100 shares of a $150 stock you've held for years. Sell covered calls at $160 strike for $2.00 premium = $200 income. If stock rises toward $160, roll to $165 strike with later expiration. Your shares remain in portfolio, generating income while you hold.

Complementary Strategies

These strategies enhance your Wheel Strategy income and provide diversification:

Dividend Income Ladder + Wheel

Combine dividend-paying stocks with the Wheel Strategy. Use Long-Term Investment Wheel on dividend stocks to collect both dividend payments and covered call premiums. Build a ladder of dividend stocks that pay in different months for consistent income throughout the year.

Buy-Write Strategy

Buy 100 shares and immediately sell a covered call. This is similar to the Wheel's covered call leg but starts with stock ownership. Works well for stocks you want to own immediately. Can be combined with Wheel positions—use Buy-Write for new positions, Traditional Wheel for existing ones.

Passive Covered Call Portfolio

If you have existing long-term stock holdings, sell covered calls on them while running Traditional Wheel on new positions. This creates a dual-income approach: passive income from existing holdings and active income from Wheel cycles.

Progression Goal

At $25,000, you have a robust options income engine. You can comfortably manage multiple Wheel positions, generate significant monthly income, and strategically use the Long-Term Investment Wheel for your core holdings.

A realistic expectation here is $250–$600/month in options income.