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The Wheel Strategy: Master Passive Income with Dividend Stocks and Covered Calls
Your shares can pay you twice. Here is the system.You own good companies. They pay a dividend, they go up and down, and most of the year they just sit there. The wheel puts that idle position to work — without turning you into a day trader.
It is four steps, sell a cash-secured put on a stock you would be happy to own, take the shares if the put is assigned, sell covered calls against those shares, and collect the dividend while you wait. When the shares get called away, you start again.
What makes this book differentMost books on this strategy lead with a number in the subtitle and never show the arithmetic behind it. This one shows the arithmetic first.
You get three scenarios side by side — a conservative case at roughly 11 % gross on invested capital, a base case near 17 %, and an optimistic case up to 29 % — with fees, idle capital, and the number of contracts your account can actually hold all subtracted along the way. Nothing is promised. Everything is shown, so you can substitute your own assumptions and see what changes.
InsideThe four steps in full — cash-secured puts, assignment, covered calls, and the roll, each with real option chains rather than round numbersChoosing the stock first — quality, valuation and option liquidity, because the wheel is only ever as safe as the company you are prepared to ownStrike, delta and expiration — why 30 to 45 days and a delta near 0.20 earns the most premium for the risk taken, and what the delta really tells you about the oddsImplied volatility — where high premium is compensation and where it is a warningWhen it goes wrong — assignment into a falling stock, early exercise before a dividend, and the repair sequence for eachSmall accounts, honestly — why a $10,000 account leaves roughly a quarter of its capital idle, and how that gap closes as the account growsFifteen years of compounding — what happens when the premium is reinvested instead of spentWho this is forDividend investors who want more from the shares they already hold. Beginners who want a strategy with defined mechanics instead of a screen full of indicators. Anyone who has read that the wheel returns 20 % a year and would like to see where that figure comes from.
You need a brokerage account with options approval, enough capital for at least one 100-share position, and about fifteen minutes a week.
What this book will not doIt will not promise you a monthly income figure. It will not tell you the wheel is risk-free — it is not, and there is a full chapter on the losses it can hand you. It does not sell a service, a signal group, or a course.
Start with one position. Let it compound.
Educational material only, not investment advice. Options trading involves substantial risk, including the loss of your entire investment.
It is four steps, sell a cash-secured put on a stock you would be happy to own, take the shares if the put is assigned, sell covered calls against those shares, and collect the dividend while you wait. When the shares get called away, you start again.
What makes this book differentMost books on this strategy lead with a number in the subtitle and never show the arithmetic behind it. This one shows the arithmetic first.
You get three scenarios side by side — a conservative case at roughly 11 % gross on invested capital, a base case near 17 %, and an optimistic case up to 29 % — with fees, idle capital, and the number of contracts your account can actually hold all subtracted along the way. Nothing is promised. Everything is shown, so you can substitute your own assumptions and see what changes.
InsideThe four steps in full — cash-secured puts, assignment, covered calls, and the roll, each with real option chains rather than round numbersChoosing the stock first — quality, valuation and option liquidity, because the wheel is only ever as safe as the company you are prepared to ownStrike, delta and expiration — why 30 to 45 days and a delta near 0.20 earns the most premium for the risk taken, and what the delta really tells you about the oddsImplied volatility — where high premium is compensation and where it is a warningWhen it goes wrong — assignment into a falling stock, early exercise before a dividend, and the repair sequence for eachSmall accounts, honestly — why a $10,000 account leaves roughly a quarter of its capital idle, and how that gap closes as the account growsFifteen years of compounding — what happens when the premium is reinvested instead of spentWho this is forDividend investors who want more from the shares they already hold. Beginners who want a strategy with defined mechanics instead of a screen full of indicators. Anyone who has read that the wheel returns 20 % a year and would like to see where that figure comes from.
You need a brokerage account with options approval, enough capital for at least one 100-share position, and about fifteen minutes a week.
What this book will not doIt will not promise you a monthly income figure. It will not tell you the wheel is risk-free — it is not, and there is a full chapter on the losses it can hand you. It does not sell a service, a signal group, or a course.
Start with one position. Let it compound.
Educational material only, not investment advice. Options trading involves substantial risk, including the loss of your entire investment.
203 pages, Kindle Edition
Published September 3, 2026
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