Free white paper · 5,400 words · ~25 min read
Income Without Speculation
The wheel strategy, applied to value investing.
Most options newsletters teach you to chase premium on stocks you don’t actually want to own. This paper takes the opposite approach: how a serious value investor can use cash-secured puts and covered calls to turn the discipline they already practice into a continuous income stream.
Written by Tim Travis, a value-focused investor with 25 years of market experience. Sent immediately to your inbox.
What’s inside
- ✓The mechanics, in plain language. Cash-secured puts, covered calls, and the continuous loop — stripped of jargon.
- ✓Why the strategy fits value investing. And why most options newsletters get this exactly backwards.
- ✓The three preconditions. The discipline that separates a value-investing wheel program from yield chasing.
- ✓A worked example. Concrete math on a single full cycle, with the annualized return broken out.
- ✓What can go wrong. Six honest failure modes, and how disciplined position sizing absorbs them.
“The wheel is not a strategy for finding alpha. It’s a strategy for monetizing the discipline you already have.”
About the author
Tim Travis is the editor of Value Options Letter, a weekly research publication applying value-investing discipline to systematic options income. He has spent 25 years analyzing markets, including running concentrated value portfolios for clients of T&T Capital Management. Value Options Letter is an independent financial publication, separate from T&T Capital Management’s advisory practice.
Value Options Letter is a financial publication, not a registered investment advisor. The strategies described in the paper are presented for educational purposes only. Options trading involves substantial risk and may not be suitable for every investor. Past performance is not indicative of future results.