Wheel Strategy Tips - How to "Fly Rescue Missions"
19 هزار بار بازدید -
4 سال پیش
-
Wheel Strategy Tips - How
Wheel Strategy Tips - How to "Fly Rescue Missions"
To get the transcript and MP3, go to: https://www.rockwelltrading.com/coffe...
You might have heard me talking about "rescue missions" when a Wheel Strategy Trade is in trouble.
In this video, I will show you exactly what that means and also talk about more wheel strategy tips, e.g. trading the wheel option strategy, trading the wheel in a down market, and several the wheel option strategy example.
Wheel Strategy Overview: 1:20
What Are Rescue Missions?: 3:32
How Do You Fly A Rescue Mission?: 7:39
When Should You Fly A Rescue Mission?: 10:17
Important Rules: 22:06
The Wheel Strategy Overview:
1) Sell Put options and collect premium
2) You may or may not get assigned
3) when you are assigned, you sell calls and collect more premium.
- Problem
* What if you can't get enough premium for the calls? (at least 30% annualized)
* Don't sell below the assigned strike price.
Rescue Missions:
- You sell more put options below the assigned strike price
- Advantage:
* You collect more premium
* If you are getting assigned,
* you lower your cost basis
- Easier to get out of the trade
RIDE example:
- Got assigned at 21.50, currently trading at 16.23 (100 shares)
- The idea is to sell strike price at 11.50 put, collect more premium.
- If assigned, we would own 100 more shares at 11.50.
- This would bring the average per share down from the initial 21.50/share to 16.50/share, lowering our dollar cost basis making it easier to get out of the trade.
How Do You Fly A Rescue Mission?
- Sell Put below the assigned strike
- Same amount or more
- Follow the Wheel Calculator
* I want to make at least 30% annualized
When Should You Fly A Rescue Mission?
- Only if you can’t get enough premium for the calls
- WAIT!!!
* Don’t fly rescue missions too early!
* You need to keep your powder dry (MARGIN)
- Only consider this if the stocks went down at least 30% from your assigned price
Examples:
AAPL: down 12% -- NO rescue mission
GDXJ: down 9% -- NO rescue mission
RIDE: down 24% -- NO rescue mission yet
* We can start thinking about it
IMPORTANT:
You can’t rescue every trade!
5 Stocks NOT to sell puts on when trading The Wheel:
- “Reddit Stocks”: GME, AMC, BB, BBBY, SLV
- Stocks with earnings before expiration
- Stocks with Phase 3 clinical trial (SRPT)
- Crazy stocks
- Stocks with premiums that are too good to be true
* Stocks above
* Leveraged ETFs (2x, 3x, …)
Summary
- Yes, you can fly rescue missions
- Don’t trade “stupid stocks” (see above)
- Have a plan BEFORE you sell puts
* Where’s the next support level
* Rescue Mission
- Don’t panic
- Don’t start flying rescue missions too early
Recommended Links & Videos:
How To Find The Best Stocks For The Wheel (Last Video): Video
The Wheel Strategy Playlist: The Options Wheel Strategy
How to find strong support and resistance: How To Identify Strong Support & Resi...
Wheel Book Waitlist: https://www.rockwelltrading.com/wheel...
Rockwell Merchandise: https://store.rockwelltrading.com/
#StockMarket #OptionsTrading
================================================================================
✅ First, subscribe to my channel here so you never miss a new video: https://bit.ly/3aLKLDz
📺 Watch My Daily Trading Routine that takes me less than 15 minutes a day: https://go.rockwelltrading.com/my-tra...
📕Get a FREE Hardback Copy Of My New Book “The Wheel Options Trading Strategy”: https://go.rockwelltrading.com/the-wh...
💻 Need a broker? We prefer trading using Tradier! Sign up here: https://go.rockwelltrading.com/tradie...
📈 TradingView is my favorite charting platform. I use the Pro Version: https://go.rockwelltrading.com/tradin...
================================================================================
tastyworks, Inc. (“tastyworks”) has entered into a Marketing Agreement with Rockwell Trading Services, LLC whereby tastyworks pays compensation to Rockwell Trading Services, LLC to recommend tastyworks’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Rockwell Trading Services, LLC by tastyworks and/or any of its affiliated companies. Neither tastyworks nor any of its affiliated companies is responsible for the privacy practices of Rockwell Trading Services, LLC or this website. tastyworks does not warrant the accuracy or content of the products or services offered by Rockwell Trading Services, LLC or this website. Rockwell Trading Services, LLC is independent and is not an affiliate of tastyworks.
To get the transcript and MP3, go to: https://www.rockwelltrading.com/coffe...
You might have heard me talking about "rescue missions" when a Wheel Strategy Trade is in trouble.
In this video, I will show you exactly what that means and also talk about more wheel strategy tips, e.g. trading the wheel option strategy, trading the wheel in a down market, and several the wheel option strategy example.
Wheel Strategy Overview: 1:20
What Are Rescue Missions?: 3:32
How Do You Fly A Rescue Mission?: 7:39
When Should You Fly A Rescue Mission?: 10:17
Important Rules: 22:06
The Wheel Strategy Overview:
1) Sell Put options and collect premium
2) You may or may not get assigned
3) when you are assigned, you sell calls and collect more premium.
- Problem
* What if you can't get enough premium for the calls? (at least 30% annualized)
* Don't sell below the assigned strike price.
Rescue Missions:
- You sell more put options below the assigned strike price
- Advantage:
* You collect more premium
* If you are getting assigned,
* you lower your cost basis
- Easier to get out of the trade
RIDE example:
- Got assigned at 21.50, currently trading at 16.23 (100 shares)
- The idea is to sell strike price at 11.50 put, collect more premium.
- If assigned, we would own 100 more shares at 11.50.
- This would bring the average per share down from the initial 21.50/share to 16.50/share, lowering our dollar cost basis making it easier to get out of the trade.
How Do You Fly A Rescue Mission?
- Sell Put below the assigned strike
- Same amount or more
- Follow the Wheel Calculator
* I want to make at least 30% annualized
When Should You Fly A Rescue Mission?
- Only if you can’t get enough premium for the calls
- WAIT!!!
* Don’t fly rescue missions too early!
* You need to keep your powder dry (MARGIN)
- Only consider this if the stocks went down at least 30% from your assigned price
Examples:
AAPL: down 12% -- NO rescue mission
GDXJ: down 9% -- NO rescue mission
RIDE: down 24% -- NO rescue mission yet
* We can start thinking about it
IMPORTANT:
You can’t rescue every trade!
5 Stocks NOT to sell puts on when trading The Wheel:
- “Reddit Stocks”: GME, AMC, BB, BBBY, SLV
- Stocks with earnings before expiration
- Stocks with Phase 3 clinical trial (SRPT)
- Crazy stocks
- Stocks with premiums that are too good to be true
* Stocks above
* Leveraged ETFs (2x, 3x, …)
Summary
- Yes, you can fly rescue missions
- Don’t trade “stupid stocks” (see above)
- Have a plan BEFORE you sell puts
* Where’s the next support level
* Rescue Mission
- Don’t panic
- Don’t start flying rescue missions too early
Recommended Links & Videos:
How To Find The Best Stocks For The Wheel (Last Video): Video
The Wheel Strategy Playlist: The Options Wheel Strategy
How to find strong support and resistance: How To Identify Strong Support & Resi...
Wheel Book Waitlist: https://www.rockwelltrading.com/wheel...
Rockwell Merchandise: https://store.rockwelltrading.com/
#StockMarket #OptionsTrading
================================================================================
✅ First, subscribe to my channel here so you never miss a new video: https://bit.ly/3aLKLDz
📺 Watch My Daily Trading Routine that takes me less than 15 minutes a day: https://go.rockwelltrading.com/my-tra...
📕Get a FREE Hardback Copy Of My New Book “The Wheel Options Trading Strategy”: https://go.rockwelltrading.com/the-wh...
💻 Need a broker? We prefer trading using Tradier! Sign up here: https://go.rockwelltrading.com/tradie...
📈 TradingView is my favorite charting platform. I use the Pro Version: https://go.rockwelltrading.com/tradin...
================================================================================
tastyworks, Inc. (“tastyworks”) has entered into a Marketing Agreement with Rockwell Trading Services, LLC whereby tastyworks pays compensation to Rockwell Trading Services, LLC to recommend tastyworks’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Rockwell Trading Services, LLC by tastyworks and/or any of its affiliated companies. Neither tastyworks nor any of its affiliated companies is responsible for the privacy practices of Rockwell Trading Services, LLC or this website. tastyworks does not warrant the accuracy or content of the products or services offered by Rockwell Trading Services, LLC or this website. Rockwell Trading Services, LLC is independent and is not an affiliate of tastyworks.
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