Generating Consistent Income Using the Wheel Strategy

📈The wheel strategy allows you to create continuous income by selling options on stocks you want to buy.

💰By selling cash secured puts, you can generate income and potentially purchase stocks at a discount.

📚Fidelity's integrated technology automates the process of finding short put opportunities and sorting them based on yield.

🔄Once assigned, you can sell covered calls on the stocks you own to generate additional income.

📊The wheel strategy is a neutral to bullish strategy that allows you to participate in capital appreciation while generating regular income.

What is the wheel strategy?

—The wheel strategy is a method of generating consistent income by selling cash secured puts and covered calls on stocks you want to buy.

How does selling cash secured puts work?

—Selling cash secured puts obligates you to buy the stock if it reaches a certain price, allowing you to generate income while potentially purchasing the stock at a discount.

What is the benefit of Fidelity's integrated technology?

—Fidelity's integrated technology automates the process of finding and sorting cash secured put opportunities based on factors like yield, making it easier to implement the wheel strategy.

What can you do after being assigned a stock?

—Once assigned a stock, you can sell covered calls on it to generate additional income. This allows you to participate in capital appreciation while generating regular income.

What type of strategy is the wheel strategy?

—The wheel strategy is a neutral to bullish strategy, meaning it works best when you are expecting the stock to either increase or remain relatively stable in price.

00:00Learn how to generate consistent income in your portfolio using the wheel strategy integrated into the Fidelity experience.

01:40Explore the basics of the wheel strategy, which involves selling cash secured puts and covered calls on stocks you want to buy.

03:59Discover Fidelity's integrated technology that automates the process of finding and sorting cash secured put opportunities based on factors like yield.

07:32Understand the benefits of selling cash secured puts, including generating income and potentially purchasing stocks at a discount.

09:40Learn how to sell covered calls on stocks you own to generate additional income and participate in capital appreciation.