You’ve probably heard me talk about the wheel strategy and how important it is to trade with clear objectives. This week, I put both of those to work — and gave the wheel a little twist.
Here’s the setup:
I’ve held 200 shares of AT&T for a while. When the stock’s up, I’ll sell covered calls. If I get assigned, great. If not, I hang tight and look for a chance to sell cash-secured puts and buy shares back lower. It’s been a decent way to manage the position.
Recently, though, I found myself liking Verizon’s valuation more. So I sold a 43.5 put in VZ, aiming to get assigned and wheel into that name instead.
At the same time, I sold the 27.5 call on 100 of my AT&T shares — just out of the money. My goal? To get assigned and sell the shares while keeping the premium.
This is one way to rotate within a sector, meet trade objectives and use options to make the transitions smoother.
It’s not about trying to time the market perfectly. It’s about staying objective-focused and using the wheel with a bit of finesse.
#OptionsEducation #WheelStrategy #CoveredCalls #CashSecuredPuts #TradingWithPurpose
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