FS_FRA
Member
There is no mechanical or intrinsic value to starting with #1 or #2 that I know of. I guess something needed to be #1 between the two.
If you haven't already, I commend reading the first page of the thread to you. Not all of the assumptions there (which are true for me) are true for everybody else in the thread (we're each where we're at, with our own circumstances). But that might be helpful to you.
Mostly there are link(s) there to the basic option education material that I consider to be the baseline knowledge.
Thanks for you response. This has been my take on the strategy from day one: it seems to be a chicken/egg kinda situation.
I guess whoever came up with the idea assumed cash over stocks is the usual entry into the game.
Over the past days I re-read the entire 50 page thread here and I did look through several of the OA videos as well as other sources on the more complex (in my mind) options strategies out there. I am quite familiar in simple put/call trading, and have done so intermittently over the past several years. Regards the Wheel I just got stuck on the philosophical question, on where to start. I have considered to simply sell 100 TSLA to get the cash to start the wheel where the strategies suggest (writing puts), thereby keeping my cash liquidity in the trading account. However I now believe that the only one benefitting from that entry is the broker with an additional commission on the stock sale...
So: putting money where mouth is, I'm going to look for a nice covered call to sell as my entry into the Wheel.
Only issue on my mind right now is: sit on the sidelines over the election? Undecided on that.