The Wheel - Options Income

The Wheel is a popular income producing options strategy where you sell cash secured puts and covered calls over and over again, thus producing income every month. Whether you are trading in an IRA, 401K, or your personal brokerage account, this strategy works for traders with a variety of goals and risk tolerances. This application will help you manage these trades and keep track of their progress.

The first step in The Wheel strategy is to sell a cash secured put, where you receive a premium for taking on the obligation to purchase 100 shares of a stock if the price of the stock is under the put strike price at expiration. Now you wait for the put to either expire worthless or for the shares to be assigned to your account. If the put expires worthless, you simply write another cash secured put! As with other options strategies where you may dread assignment, in this case assignment is simply part of the strategy.

If the price of the stock was below your put strike price, you will be assigned the shares. This means that you are now the proud owner of 100 shares of stock. You can now sell a covered call on them, thus producing even more income! Now you wait for the call to either expire worthless or for your shares to be called away if the price of the stock is above the call strike at expiration. If the call expires worthless, you simply write another covered call.

If the price of the stock was above your call strike price, your shares will be called away. In this case, you simply start the wheel over and sell another cash secured put! This way the cycle starts over and you are back at Step 1.

This application will help you manage these positions, as well as keep track of your total profit over time. It will also do the heavy calculations for you, such as the cost basis, yearly yield and more. The interface is intuitive and easy to use. The data the application provides is delayed stock price data and end of day options pricing.

Roadmap:
* Advanced options screener
* Near-Real time options pricing data
* Fundamentals data, dividend data and more