It's Like A Cash Secured Put...But BETTER!

One of my favorite option strategies is the wheel strategy. I even wrote a book about it. I wrote a book called the super wheel option strategy. This book is available on Amazon. You'll find a link to that book in the description below. But in that book, I talk about how I like to start the wheel sometimes

with things that are not necessarily cash secured puts. There are many option strategies that you can use to get long shares of stock other than just a naked short put. Any option strategy that contains a naked short put can be used to start the wheel. For example, one of my favorite ways to start the wheel is

by using put ratio spreads. In my opinion, I think the put ratio spread is far better if you're wanting to begin the wheel than the cash secured put. Now, some of this will depend on what kind of stock or ETF you're trying to acquire shares of. A lot of people though, when they're trying to get

shares of a stock, it's because the stock has been falling. They're wanting to get shares at a discount. And sometimes it can be hard to sell a put on something that has been stair-stepping lower maybe for a few weeks or a few months. In fact, I would say a stock that is drifting lower,

stair-stepping lower, the put ratio spread makes far more sense because it can make you far more money. Let me actually jump into the trading platform here and let's play this out. Let's put on an example. I'm going to go to AAPL, Apple, because I don't currently have an Apple position. And let's go into the

chart here. Now, Apple is looking pretty strong these days. So, this is not a stock that is in free fall. So, you know, this one I I can understand if you just want to go sell a put by itself because the put by itself, the naked short put, has a very high chance of