There’s something deeply satisfying about collecting consistent income on a stock that barely moves. I’ve been running a wheel strategy on the Direxion Daily TSLA Bull 2X Shares (TSLL) since Sept. 19, and it’s turned into one of my most reliable income generators.
Over the past four months, I’ve collected $3,135 in total premium — and here’s the kicker — I’ve never been assigned the stock.
I run this inside a small $6,800 account where I keep three positions dedicated to this style of trading. It’s a simple, methodical approach — not flashy, not risky, just steady.
This is the beauty of the wheel strategy when executed with patience and precision. You’re not trying to hit home runs. You’re collecting singles and doubles week after week, building a consistent income stream that compounds over time.
Let’s discuss how I do it…
The Setup: Selling Puts at Support Levels
I started with four contracts, which represents 400 shares, and I’ve been selling puts at the $18-$20 strike range. Every week I roll these contracts forward, collecting premium along the way.
The weekly premiums vary quite a bit depending on market conditions and volatility. Some weeks I’ve collected as much as $1.07 per contract, other weeks 77 cents, 67 cents or 48 cents. During the slow Christmas week, I was only able to get 20 cents per contract.
But here’s where it gets interesting from a risk management perspective…
Despite multiple dips in TSLL’s price during this period, the stock never closed below my strike prices at expiration. That means I keep the premium and never get stuck with the shares (so far, of course, but the risk is still there).
The volatility creates opportunity, and placing strikes strategically near support levels keeps the risk contained.
The Math: $8 Per Share in Built-In Profit
Over four months — September, October, November, December and into January — I’ve collected roughly $8 per share in premium. Do the math: $3,135 divided by 400 shares equals $7.83 per share.
If I were assigned shares today, I’d already have nearly $8 of profit built into my cost basis before even touching the stock. That cushion is what makes this strategy so powerful. You’re collecting income on a stock that did nothing for months, yet those small weekly gains stack up fast.
The key here is patience, precision and repeating the process without overreaching or getting greedy. The wheel strategy isn’t meant to win big in a single move. It’s meant to win small, consistently, until the small wins become something meaningful.
Jeffry Turnmire
Jeffry Turnmire Trading
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I’m just a regular dude in Knoxville, Tennessee: a husband, father, civil engineer, urban farmer, maker and trader.
I’ve been at this trading thing with real money for 20-plus years, and started paper trading over 35 years ago. I have a knack for making some epic predictions that just may very well come true. Why share them? Because I like helping other people — it’s the Eagle Scout in me.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. 100% Win Rate Shadowing Dark Pool Exchanges
My special setup allowed me to shadow some of Wall Street’s biggest transactions…
Including the ones they’ve got spread across Dark Pool Exchanges.
I’ve closed 16 trades so far without a single loss and I’m looking to go after what could be No. 17 this week!
