Frequently Asked Questions About SecurePutCalls
SecurePutCalls provides professional options trading tools focused on the Wheel Strategy — selling cash-secured puts and covered calls for consistent premium income. Here are answers to the most common questions we receive from traders at every experience level.
The Wheel Strategy works by systematically selling cash-secured puts on stocks you are willing to own at a lower price. If the stock stays above your strike price, you keep the full premium as income. If it drops below and you are assigned shares, you transition to selling covered calls above your cost basis until the shares are called away, then restart the cycle. This creates a continuous income stream from premium collection.
SecurePutCalls requires no minimum account size — the free plan is available to all traders. Paid plans are monthly or annual subscriptions with no long-term commitment required. Broker connections use official OAuth authentication and read-only position access by default. We never have access to execute trades without your explicit authorization. Our platform supports Tastytrade, TD Ameritrade (now Schwab), Robinhood, Webull, and Charles Schwab. For questions not answered here, contact our support team through the help center or community forum.
Frequently Asked Questions
What is the best way to learn options trading for beginners?
The best approach for beginners combines structured education with practical application. Start with a comprehensive course that covers options fundamentals, terminology, and basic strategies like cash-secured puts and covered calls. Practice with paper trading before risking real capital, and begin live trading with small position sizes. Focus on one strategy initially, mastering it before expanding to others. Join trading communities to learn from experienced practitioners and accelerate your development through shared insights.
How much capital do I need to start trading the wheel strategy?
The capital required depends on the stocks you want to trade. For a cash-secured put, you need 100 times the strike price in cash. For example, selling a $50 strike put requires $5,000 in available capital. Many wheel practitioners start with $5,000-$25,000, allowing positions in lower-priced stocks with room for diversification. Focus on quality stocks within your capital range rather than stretching for expensive names. As your account grows, you can add higher-priced stocks to your watch list.
What are the main risks of the wheel strategy?
The primary risks include significant stock price declines after put assignment, opportunity cost if stocks rally sharply above covered call strikes, and assignment timing issues around dividends or corporate events. Extended bear markets can result in holding underwater positions for prolonged periods. Concentration risk exists if you're running the wheel on just a few stocks. Mitigate these risks through proper position sizing, diversification across sectors, stop-loss discipline, and focusing on quality companies you'd be comfortable holding long-term.
How do I choose the right stocks for the wheel strategy?
Ideal wheel stocks combine several characteristics: sufficient options liquidity for tight bid-ask spreads, implied volatility high enough to generate meaningful premiums, fundamental quality that makes you comfortable owning shares, and stock prices appropriate for your account size. Many traders focus on established companies with consistent earnings, reasonable valuations, and clear business models. Avoid extremely volatile stocks, companies facing existential risks, or names you wouldn't hold through a significant drawdown.
What is the typical annual return from the wheel strategy?
Returns vary significantly based on stock selection, market conditions, position management, and risk tolerance. Conservative practitioners targeting safe stocks might achieve 10-15% annual returns, while more aggressive approaches on higher-volatility names could see 20-30% or more in favorable conditions. Bear markets can produce losses despite premium collection. Focus on developing a consistent, repeatable process rather than chasing specific return targets. Track your actual results over extended periods to understand realistic expectations for your specific approach.
Should I use margin when trading the wheel strategy?
The wheel strategy traditionally uses cash-secured positions without margin leverage. This approach limits downside risk and ensures you can meet all obligations without liquidation risk. Some experienced traders use margin to enhance returns, but this amplifies both gains and losses while introducing liquidation risk during market stress. Beginners should focus on cash-secured trading until they thoroughly understand the strategy and have demonstrated consistent results. If considering margin, start with minimal leverage and understand your broker's margin requirements thoroughly.
How often should I monitor my wheel strategy positions?
Daily monitoring during market hours is recommended, though positions don't typically require intraday attention. Check your positions at market open and close, watching for significant price movements, approaching expirations, or changing market conditions. Weekly position reviews should assess roll opportunities, assignment risks, and overall portfolio balance. Avoid over-monitoring, which can lead to unnecessary adjustments and increased transaction costs. Set price alerts for important levels so you can respond to significant moves without constant watching.
What should I do if a stock drops significantly after I'm assigned?
First, reassess the fundamental thesis for owning the stock. If the investment case remains intact, continue selling covered calls to reduce cost basis while waiting for recovery. If fundamentals have deteriorated, consider closing the position at a loss rather than compounding mistakes. The wheel recovery calculator helps project how many covered call cycles are needed to return to breakeven. Sometimes accepting a loss and moving capital to better opportunities makes more sense than waiting extended periods for recovery on a damaged stock.