Options wheel
Selling covered calls and cash secured puts is well known strategy.
I would like to share the strategy I use which I call options wheel.
The way it works:
Step 1: sell cash secured puts to collect the premium. I normally use weekly or monthly puts, depending on volatility.
Step 2: in case Put gets in the money, I let it exercise and get the stocks.
Step 3: once I have a stock, I start selling calls. In case call get exercised, we start from Step 1.
Obviously such strategy require sufficient cash on the account to cover the Wheel.
This strategy is not risk free, so please use your judgement.
#options
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