Wheeling an lcc "works", but it's not strictly speaking a wheel. The leap cc's (poor man covered call, ...) is something that you manually resolve into cash, whether a gain or a loss. Same for a bull put spread. To be specific if you decide you are taking assignment on your lcc, what you actually do is STC the long call (LEAP) and BTC the short call. There's a range in the share price where the short call is ITM where the long call is gaining value faster than the short call is losing value (delta is higher on the long call). That's about as far ITM you'd want to go. There are also the Vega (IV) value changes and the time value (Theta) changes to consider that will move the timing of assignment around.I have not found a cc-trade this week I'm either comfortable with risk-wise, or happy with premium-wise. So I sit on the sidelines. Can't lose my shares, as I'd be killed by taxes (cost base too low) - maybe need to load up on LEAPS and write lcc instead, but "wheeling" an lcc doesn't work, right?
With cash in hand you decide whether your next position using that cash is on the call or put side. So you wheel back and forth to the degree that the lcc resolves into cash and is followed by puts (or put spreads). Or put (spreads) get resolved into cash which is then used to purchase a far expiration call to sell covered calls against.
Or you could be using that cash to back call spreads instead of buying the leap for covered call sales, with the bonus that the cash can ALSO back a put spread (aka - Iron Condor).
Or ...
Or ...
I resemble this remark.If you had done this with 800 strike Puts back in February, you would have gone 7 months with almost no income.