Published July 20, 2026
Wheel strategy basics: CSP → assignment → CC
A plain-language walkthrough of the options wheel: selling cash-secured puts, getting assigned shares, and writing covered calls until shares are called away.
What the wheel is
The options wheel is a repeatable cycle: sell cash-secured puts (CSPs), accept assignment if the put finishes in the money, then sell covered calls (CCs) against the shares until they are called away — and start again.
CycleIQ is built around that story. Each cycle groups the CSP legs, assignment, and CC legs so you can see premium and cost basis without rebuilding a spreadsheet.
Cash-secured puts
A CSP means you sell a put and keep enough cash to buy 100 shares per contract at the strike if assigned. You collect premium up front. If the put expires worthless, you keep the premium and may sell another put.
If the stock trades below the strike at expiry (or you are assigned early), you buy the shares at the strike. Your effective stock cost is usually strike minus the premium you already collected (fees adjust that slightly).
Covered calls
Once you own the shares, you can sell a covered call against them. You collect more premium and agree to sell the shares at the call strike if assigned.
If the call expires worthless, you keep the shares and the premium — which lowers your holding cost. If the call is assigned (called away), you sell the shares at the call strike and the wheel cycle typically ends.
What to track
For each cycle, useful numbers include premium collected on every leg, assignment cost basis, and how CC premiums reduce that basis while you still hold stock.
CycleIQ journals those legs for you so dashboard P&L and the Cycles cost-basis view stay aligned with the same wheel.