Trading Strategy With A High Win Rate - Why I LOVE Trading "The Wheel"

As traders, you have to accept that you're going to take losses...but it doesn't mean we like it! So you're constantly on a hunt for a way to improve your edge, with a strategy to increase your win rate. This is exactly why I absolutely LOVE trading "The Wheel."

So three months ago, I started with $50,000 in a tastyworks margin account. To this point, I've realized: $11,329 or 22.7% in profits. Not too bad, if do say so myself. Now, IF I can keep this up that would be 22.7%* 4 = 90.8% per year. And I think that's pretty impressive for any trading strategy!

So are these SRC profits? Short answer, YES! So let's take a quick look at the strategy:

"The Wheel" - Overview:
1) Pick a stock that's going sideways or slightly moving up
2) Sell a Put Option, i.e. you have to buy the stock at the strike price
3) Collect premium and buy it back when we see 90% of the profits
4) If we get assigned, i.e. we have to buy the stock, we will sell Calls
We have to sell the stock at the strike price
5) Collect premium on the call and we buy it back when we see 90% of the profits

So with that overview, we can answer the three key questions a good trading strategy answers:
1) What stocks or options to trade
2) When to enter
3) When to exit

Now let's take a look at some recent trade examples. First, I want to look at a trade-in DOW. At the time of this trade, I've been in for two days. What I'm looking at is that DOW will stay above $45.50 Put for two more days. And looking at the chart you'll see it would have to fall a long way before it gets there. For this trade, I'll collect $44 per Option and I sold 4 of them which would equal: $176. This might not seem like a lot, but it was a high probability and only took a couple of days.

Here's another example of a trade I still have on in KSS, where I sold the $18.50 Put for $15 per Option and I sold 13 of them giving me: $195 in 7 days.

Another trade example is in IBM where I sold 2 of the 115 Puts for $43 per option giving me: $86 in 3 days

Now if IBM were to dip below 115 before expiration, could I get assigned? Of course, but that's part of this strategy. And that has happened a few times already. Let's take a look at those trades in AAPL, TQQQ, and TRGP. With all three of these, I was assigned shares, but as you can see those happened to be the trades where I made the most money. That's why I don't mind when that happens because I'm picking stocks that I wouldn't mind owning in the first place.

So now, let's discuss where things can go wrong with this strategy:

How Can You Mess This Up?
1) Picking The Wrong Stock
2) Picking The Wrong Strike Price
3) Picking The Wrong Expiration
4) Not Getting Enough Premium Per Day (PPD)
5) Not Knowing What To Do When You Get Assigned

I hope this helps! P.S. Right now, I'm running a special on my "Power Income Alerts" where any time I take a "Wheel" trade in my personal account, I'll send you an alert. You can try it out for 30 days for just $1: https://bit.ly/31zXTJX

The Wheel Strategy Playlist:
   • The Options Wheel Strategy  

#tradingstrategywithahighwinrate #highwinratetradingstrategy #besthighwinratetradingstrategy
================================================================================
✅ First, subscribe to my channel here so you never miss a new video: https://bit.ly/3aLKLDz
📈 Watch My Daily Trading Routine Here (that takes me less than 15 min/day): https://bit.ly/2ICZkgX
📕 Get a FREE Hardback Copy Of My New Book “The Wheel Options Trading Strategy”: https://tinyurl.com/bvxjjz7k
💻 Need a broker? We prefer trading using Tradier! Sign up here: https://bit.ly/3uw3RaG
🌍 Outside of the U.S.? Check out Interactive Brokers' amazing platform: https://bit.ly/2M2m6DN
☕️ Start your morning just like Markus, with the MorningBrew Newsletter: https://bit.ly/32Xs6Uu
================================================================================
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.