Income strategies › The wheel
Stop 3 of 7 on the CC Line
The wheel puts, then calls, then repeat
Cash-secured puts until you're assigned, then covered calls until you're called away. Round and round. Risk: Moderate
How it works
The wheel chains the two strategies above:
- Sell cash-secured puts on a stock you'd be happy to own. Repeat while they expire worthless.
- If assigned, you now own 100 shares. Sell covered calls above your cost.
- If the shares are called away, you're back to cash. Go to step 1.
Every premium collected lowers your effective cost per share.
When it earns
Range-bound markets where the stock drifts around your strikes. Each turn of the wheel collects another premium.
What can go wrong
- Bag-holding: if the stock falls a long way after assignment, calls above your cost pay very little and you may be stuck for months. Max loss is about the same as owning the shares.
- More trades, more fees: each step is a separate order, and some brokers charge for assignment (see table below).
- Upside capped during the covered-call phase.
Worked example Hypothetical
Fictional XYZ at $50. Step 1: sell a $45 put for $1.00 ($100). XYZ dips to $44 and you're assigned 100 shares at $45. Effective cost: $44. Step 2: sell a $50 call for $1.00 ($100). Effective cost now $43. Step 3: XYZ recovers to $52 and your shares are called away at $50.
| Scenario (hypothetical) | Outcome |
|---|---|
| Put premium | +$100 |
| Call premium | +$100 |
| Shares bought $45, sold $50 | +$500 |
| Full turn of the wheel | +$700 before fees (made-up numbers) |
How fees eat into the premium
Using each broker's published fees from our own data (verified 2026-10-25): the cost to open this example (1 contract in one order) next to the hypothetical $100 credit, and the same trade if the premium were a tiny $0.10 per share. Holding to expiry avoids a closing order; closing early roughly doubles the fees; assignment fees included where published.
Includes commission, platform fee, per-order minimums, estimated US regulatory fees and 9% GST; excludes FX and exchange fees. "Promo" means open-ended promos available to everyone (no new-customer offers). Try your own numbers in the fee calculator →
Where to find sell-put ideas
We don't publish option prices or trade ideas. Several Singapore brokers have built-in screeners inside their apps that filter options by strike, expiry, premium or probability, using live data you're licensed to see as their customer:
- moomoo SG: Its app has an options screening tool marketed as Easy Sell Put, plus a general options screener and strategy builder. moomoo SG (placeholder referral link) · fees
- Tiger Brokers SG: The Tiger Trade app has an options screener / strategy tools for filtering contracts. Tiger Brokers SG (placeholder referral link) · fees
- Webull SG: Webull's app includes an options screener and a strategy builder. Webull SG (placeholder referral link) · fees
- Interactive Brokers SG: IBKR's platforms include market scanners and options strategy tools (e.g. in TWS). Interactive Brokers SG (placeholder referral link) · fees
Feature names and availability change and may depend on your account's options approval level; check in the app. A screener result is not a recommendation. ⚠ Referral links above are placeholders (not live); if they become affiliate links we may earn a fee at no cost to you (disclosure).
The CC Line
Seven option income strategies, drawn as a train line. Board at CC1: each stop builds on the ones before it. Interchange stops combine earlier ones.