How I Generate Monthly Income Using the Wheel Options Strategy
Like many new traders, I started off chasing big wins. I’m talking $1,000 into $10K overnight kind of wins. I bought into the GME hype, jumped into day trading, joined Discords for signals, and even set a daily goal of making $250-500 a day — like it was just another job.
What followed? Countless hours of staring at charts, failed setups, stressful mornings, wild market swings, and the highs and lows of big wins followed by even bigger losses. While I saw some people thrive in that chaos, I realized something important:
That style of trading wasn’t for me — especially while (at the time) juggling a full-time job, newly married, and caring for my senior pet.
I wasn’t looking for adrenaline. I was looking for consistency.
That’s when I found the Wheel Strategy — a simple, repeatable options framework that now powers a major part of my monthly income.
In this post, I’ll break down how it works, how I personally use it, and how you can adapt it to your own portfolio.
What is the Wheel Strategy?
At its core, the Wheel is a cash-secured put + covered call loop:
Sell cash-secured puts on stocks you'd love to own
If assigned, sell covered calls on the stock you now hold
When the shares get called away, repeat from step 1
You’re not trying to predict the market. You’re getting paid to wait.
💰 Why I Use It
Consistent premium income (I target 1–3% per month)
Focus on stocks I’d be happy to own anyway (NVDA, AAPL, TSLA, MSFT, VOO)
Low stress: defined risk, defined outcomes
Scalable: works whether you have $10K or $300K+ (as long as you have enough capital to own at least 100 shares of the stock)
🧠 My Personal Rules for Running the Wheel
Only trade high-quality, liquid stocks
Use 30-45 day expiration (better premiums, more time) for covered calls, 1-2 week expiration for cash secured puts (I monitor this often so at this point I’d want to be buying the stock anyway)
Avoid earnings weeks (too volatile and waiting for things to settle to understand pricing)
Stick to 30–40 delta puts, and 20–30 delta calls
Roll early if I want to stay in the position or avoid assignment
💡 Real Example: TSLA Wheel Trade
Step 1: Sold a $160 cash-secured put expiring in 1 week → Collected $4.20 in premium → $420 cash in pocket
Step 2: TSLA dipped → Got assigned → Bought 100 shares at $160 → Invested capital: $16,000
Step 3: Sold a $190 covered call expiring the following month → Collected $10.30 in premium → $1030 in monthly income!
🧾 Outcome:
Total premium earned: $420 + $1030 = $1450 in ~4-5 weeks
If TSLA closes above $190, I’m assigned and the shares are sold — locking in a $3,000 gain + $1030 premium = $4,030 total!!
If TSLA stays below $190, I just keep collecting premiums
📈 Risks to Be Aware Of
If the stock tanks, you’ll still own it — be prepared to hold or manage
Capital requirements: need ~$10,000+ to run it properly
Emotional discipline: don’t chase premiums or overtrade earnings
Wrapping Up
The Wheel Strategy isn’t about chasing moonshots — it’s about creating predictable income from stocks you actually want to own. With the right discipline and a repeatable approach, it can turn your portfolio into a reliable income engine.
I’ve personally used this strategy to generate thousands of dollars in monthly income, all while working a full-time job. It doesn’t require me to stare at screens all day or make split-second decisions — just a focused routine and a little discipline. It’s not flashy, but it’s consistent — and for me, that’s the goal.
If you found this breakdown helpful, I’d love for you to subscribe and follow along.
Got questions? Feel free to hit reply or drop a comment!
I enjoy helping others in a similar situation avoid the mistakes I made early on. If I can help even one person trade with more clarity, confidence, and consistency, it's worth it. My goal with HL Financial Strategies is simple: share what’s working for me so others can build toward their own financial goals with a strategy that actually makes sense.
Thank you all for your time!
– HL Financial Strategies
Disclaimer:
The content shared by HL Financial Strategies is for educational and informational purposes only. I am not a licensed financial advisor, tax professional, or investment expert. The strategies and opinions shared here are based on my personal experience as a retail trader and are not intended as financial advice.
Trading options involves significant risk and may not be suitable for all investors. Always do your own research and consult with a qualified financial professional before making any investment decisions. Past performance is not indicative of future results.