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Dan challenges the idea that calm, sideways markets are always best for trading the Wheel. His argument is more counterintuitive: Volatile markets can create some of the best opportunities for covered calls and cash-secured puts, provided traders have clear objectives, understand how to adjust positions and are comfortable with the stocks they may end up owning.
Dan explains why falling markets can create attractive buying opportunities through cash-secured puts, while sharp rallies can create opportunities to sell covered calls at higher strikes. He also digs into adjustment techniques such as net zero rolls and shows how “wish list orders” can take advantage of large market swings that might otherwise make traders nervous. The key is learning to view volatility as an opportunity rather than automatically treating it as a problem.
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