Glossary term
Wheel Strategy
An income cycle of cash-secured put, assignment, covered call, and call-away, repeated on stocks you want to own.
The Wheel Strategy is a repeating income cycle: sell a cash-secured put, take assignment if the stock falls, sell covered calls against the assigned shares, and let the stock get called away — then start again. Each leg collects premium, so the position generates income whether or not assignment occurs. The Closelook framing is that the Wheel only works on stocks you genuinely want to own at the put strike, because the strategy's worst case is holding a name through a real decline. See Covered Calls 101 and Cash-Secured Puts 101.