How To Place A Trade With The Wheel
ฝัง
- เผยแพร่เมื่อ 11 ก.ค. 2024
- How To Place The Wheel Trade?
To get the transcript and MP3, go to: www.rockwelltrading.com/coffe...
Intro: 0:00
Getting The Right Options Trading Permissions: 0:55
4 Things You Need To Know: 3:14
Step By Step Example: 4:44
The Wheel is a strategy with a really high winning percentage and I've been trading it live here on TH-cam since the end of July and thus far (knock on wood) I have a 100% win rate.
So in this video, I will show you what account you need and exactly how you place the trade. I will be going through this on tastyworks and Interactive Brokers (for all our international viewers).
First off, you obviously first must have a trading account set up, so we'll assume you've already done that ;) If not, I personally prefer using tastyworks: www.rockwelltrading.com/tasty...
You need to make sure you have the right options trading permissions. When it comes to options trading there are 4 levels. On an opening form from TD Ameritrade. they will ask you,
"What type of activity do you plan to conduct in your options account?"
It doesn't matter if it's a cash account, a margin account, or a retirement account. All you need for trading The Wheel strategy is the lowest permission possible, tier 1.
With tier one, you can write covered calls, and writing covered calls means selling covered calls as well as writing or selling cash-secured puts. This is what we are doing with The Wheel strategy.
This is step number one because if you don't have these permissions, there's not a whole lot that you can do. If you have a higher tier, if you have tier 2 or tier 3, that's okay, because tier 1 is included in the higher tiers.
Next, you need to know:
1) Are we trading a CALL or a PUT?
2) What is the expiration?
3) What is the strike price?
4) What's the minimum premium that we want to get?
Steps for placing a trade with Tastyworks:
- Enter stock symbol (for this example WYNN).
- Click the "Trade" tab on the lefthand side, and select expiration. When you do you will see all the calls on the lefthand side and all the puts on the right.
- Click on the "bid" for the desired strike price and select the number of contracts based on your account size.
- Specify the minimum amount of premium you want to achieve.
- Review and send your order.
Steps for placing a trade with Interactive Brokers:
- Enter stock symbol (for this example WYNN).
- Pick whether you want to trade stocks or options.
- Select your expiration.
- Click on the "bid" for the desired strike price, select "limit order," and select the number of contracts based on your account size.
- Click the "T" for transmit.
I find Tastyworks is a bit easier to use, while Interactive Brokers is popular for international traders.
Recommended & Referenced Videos:
The Wheel Strategy Playlist:
• The Options Wheel Stra...
Cash Covered vs Naked Puts:
• What's The Difference ...
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Have you placed a "Wheel" trade before? Let me know what strategy you're currently trading in these markets. I'd love to hear! :)
Webull also. I’m barely getting my feet wet. Appreciate your videos. Very informative.
Hi Martin, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
Hi Markus, I'm using TOS. Thanks for the video !
Ron
TOS is a great platform. Pretty easy to use. 👍
Hi Markus, I use IB as well, but I would really like to use tastyworks in the future. Do you know if it is possible to use it in germany? Love your content, keep up the good work!!
Hi Markus. Thanks for answering my questions on your video yesterday...
Should've mentioned, for the --- Wheel Strategy.
Do you use PowerX overlay in TradingView for Wheel strategy? Or just normal Candles & Bollinger bands? Thanks in Advance!!
Hi Sean, for "The Wheel", I just use a regular bar chart to identify major support levels. No indicators at all. 👍
@@rockwelltradingservices Thanks Markus!
Saxo is my primary broker. I also use TOS. But just signed up for tastyworks. Like your video explaining the wheel. It's something I've just starting doing before stumbling on your vid which I find excellent and helps reinforce my understanding. I've signed up for your course and am also intrigue with the powerx strategy - something I'll definitely revisit once I've perfected the wheel.
One question though, since Saxo allows me to trade options in EU market, what are thoughts on using the wheel EU based equities?
Hi Philip, thanks for your feedback. Much appreciated. Regarding your question: Do they have weekly expirations on European stocks? And if so, is there enough premium in them? That would determine whether you can trade them or not. Does this help?
I've watched soooo many videos, and not s single one tells you when/how/why to end a trade? Do you Buy To Close this at some point? (What point?) Do you let it expire? Etc. What's the back half of the strategy?
BTC, usually at 90% profit 👊
Hi Markus, if I use a margin account (on IB) when I get assigned, am I forced to use the leverage proposed by the broker (and therefore pay interest on the amont borrowed) or am I allowed to use my own money deposited on the account and not borrow any money? In other words is the margin fixed (by the broker) or can I increase it as I wish (to the extent to have a margin account to work as a cash account on specific transactions such as buying options)? Thanks
Hi Nicola, great question. The margin only kicks in when you exceed the money that you have in your account. Here's an example: Let's say you put $10,000 into your account, and you get $20,000 buying power. So the broker "lends" you $10,000.
If you get assigned and have to use $12,000 of the $20,000 in buying power, then automatically the broker will assigned $10,000 to YOUR money and $2,000 on margin. So you only pay for the $2,000 margin that you're using.
Does this help?
Fidelity
Yes, I'm running the wheel on WKHS using TOS
😀👍
TD Ameritrade and think or swim , have tier 1 .
What you think of Tradestation Platform?
It's a good platform. I used it many years ago. But I think they lost their edge after they got bought by a Chinese company. Just my 2 cents. 👍
I still find it hard on follow you because I usually trade on MT4/MT5 but liked your review on tradeview platform it when I do my stuff. I wanna know what do you trade.
MT4 and MT5 is usually for Forex and CFDs. It's not a good platform for these kind of trades. I trade stocks and options.
Robinhood and interactive brokers
Wheel of fortune.
👍You can say that!
Webull
Hi sch2344, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
Schwab