Sell Cash-Secured Puts
Sell cash-secured put options on quality stocks or ETFs you’d be comfortable owning. You collect premium while agreeing to potentially purchase shares at a selected strike price.
How the Retirement Income Wheel Works
The Wheel Strategy combines cash-secured puts and covered calls. The goal is to collect option premium while focusing on quality stocks and ETFs an investor would be comfortable owning.
A disciplined, repeatable approach to generating potential option income.
Get Assigned
If the option is assigned, you purchase 100 shares per contract at the strike price. Assignment is a normal part of the Wheel process and simply moves you to the next step.
Sell Covered Calls
Once you own the shares, sell covered call options against your position. This can generate additional premium while you set a potential selling price for your shares.
Shares Called Away — Repeat
If your covered calls are exercised and the shares are called away, the cycle is complete. You can then look for the next qualified opportunity to start the Wheel again.
Cash-Secured Put
When you sell a cash-secured put, you collect option premium in exchange for accepting the obligation to buy 100 shares at the strike price if assigned. The cash needed to purchase those shares is kept available.
Understanding the Wheel
Three concepts make up the foundation of the strategy.
The objective is not to avoid assignment at all costs. The objective is to follow a disciplined process using stocks and ETFs you would be comfortable owning.
Assignment
Assignment means the shares are purchased at the strike price. In the Wheel strategy, assignment is not necessarily a failed trade—it is the transition from collecting put premium to owning the shares.
Covered Call
After owning 100 shares, you can sell a covered call and collect additional option premium. If the stock is above the strike price at expiration and the option is exercised, the shares may be called away at that strike price.
How STI (Stock Trend Indicator)Â Helps Identify Opportunities
The Wheel is the strategy. STI helps bring discipline to the timing.
The Retirement Income Wheel uses STI technical criteria to evaluate stocks and ETFs for potential Wheel opportunities. Instead of treating every day as a trading day, the system can indicate PUT, WAIT or CALL signals depending on current technical conditions.
PUT — Potential Put Opportunity
Technical conditions indicate a potential cash-secured put setup. Members can then review the available trade details before making their own decision.
STI evaluates defined technical criteria including trend, momentum and volume. Signals are designed to help identify potential opportunities—not predict market direction or guarantee results.
WAIT — Patience May Be Appropriate
Technical conditions do not currently meet the defined criteria. No trade can be a valid decision.
CALL — Potential Covered Call Opportunity
For investors who already own the shares, technical conditions indicate a potential covered-call setup to review.
What STI Looks At
Multiple technical factors are evaluated together before identifying a potential opportunity.
8 EMA — Short-Term Trend
Helps evaluate recent price direction and short-term momentum.
CCI — Momentum
Helps evaluate changes in price momentum and potential shifts in market conditions.
No single indicator determines a signal. STI evaluates multiple technical conditions together to help identify potential PUT, WAIT and CALL opportunities.
Sample Wheel Opportunities
STI-powered signals designed to identify potential Wheel setups.
20 EMA— Intermediate Trend
Provides perspective on the stock's intermediate price trend.
Stochastic — Momentum & Position
Helps evaluate where current price action sits within its recent trading range.
50 DMA — Broader Trend
Helps identify whether the stock is trading within a stronger or weaker broader trend.
Volume — Confirmation
Helps determine whether price movement is being supported by trading activity.
Ready to Follow the Wheel With More Discipline?
Retirement Income Wheel combines Wheel strategy education with STI-powered signals and opportunity tools designed to help you identify potential setups and make your own informed decisions.
Educational and informational purposes only. Options involve risk. Signals do not guarantee future results.