A Full Wheel Trade, Start to Finish (Worked Example)

In short

A complete wheel cycle worked end to end — put, assignment, two covered calls, and a final call-away — with every dollar figure tracked and totaled.

This lesson runs one complete wheel cycle end to end, tying together every mechanic from this course: selling a put, taking assignment, calculating cost basis, selling calls, and closing the loop.

Step 1: sell a cash-secured put

Fictional stock XYZ trades at $64. You sell a $60-strike put, 30 days out, collecting $1.40 premium, holding $6,000 as collateral.


Premium collected	$140
Cash reserved	$6,000

Step 2: XYZ falls, you're assigned

At expiration, XYZ closes at $57. You're assigned 100 shares at $60.


Shares received	100
Cash paid	$6,000
Real cost basis ($60 - $1.40)	$58.60/share

Step 3: sell a covered call

XYZ is now at $57. You sell a $61-strike call, 30 days out — above your $58.60 basis — collecting $1.10 premium.


Premium collected	$110
Strike vs. cost basis	$61 strike is $2.40 above your $58.60 basis

Step 4: the call expires worthless

XYZ stays at $59 through expiration — below the $61 strike. The call expires worthless. You keep the shares and the $110.

Step 5: sell a second covered call

XYZ is still at $59. You sell a new $62-strike call, 30 days out, collecting $0.95 premium.


Premium collected	$95

Step 6: XYZ rises, shares called away

XYZ climbs to $65 by expiration. Your shares are called away at $62.

The full cycle, totaled

Source	Amount
Put premium	+$140
First call premium	+$110
Second call premium	+$95
Stock sale proceeds (100 × $62)	+$6,200
Original cash paid for shares	-$6,000
Total profit	$545

The $545 came from three separate premiums ($345) plus a $200 gain on the shares ($6,200 sale minus $6,000 purchase) — across three full months: one month with the put open, then two more months holding shares while selling two consecutive calls. Cash was tied up the entire time — first as put collateral, then as the capital behind the owned shares.

Trade with discipline

This example shows a full cycle working out well — every branch could have gone differently. XYZ could have kept falling after assignment instead of recovering, in which case both calls would have collected smaller premiums (or none, if sold too far out) while the shares sat at an unrealized loss the whole time. One favorable worked example illustrates the mechanics; it isn't a representative outcome or a projection of what any specific trade will do.

Key takeaway: A full wheel cycle stacks put premium, call premium, and stock appreciation together — but every step still carries the same real, individually assessed risk covered throughout this course.

Next, and last: where AskProsper's managed Wheelhouse Smart Portfolio fits alongside everything you've just learned to do by hand.

This lesson is educational content explaining standard options mechanics, not personalized investment or trading advice. It is not a recommendation to run this strategy, and past or hypothetical results do not indicate future performance.