Summary

The narrator describes the "wheel" strategy:  

  1. Sell an ATM put.
  2. Continue until assignment.
  3. After assignement of the put, sell covered calls at put assignment strike until call assignment
  4. On call assignment go back to step 1.
Make one trade per month.

The narrator made about $6K in premium over 2023 using this strategy for a 15% gain.

Problem:  While the narrator made over 15% from the capital requirement, the underlying asset went up by over 25%.


Summary

The Wheel works best with an upward trending or sideways or stock.  However, if there is huge growth in the stock, then one will have more net asset value by just holding the stock.  And, the price of the stock might get so high as to make it impossible to fund a put.  In the video, the final puts cost about $43K.  Much more than the $37K originally.  

If the stock drops, then you will both lose the value of the underlying asset and the premiums will shrink as well.

Unless we are just trying to make quick temporary cash, I don't think that the Wheel is a good strategy.

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