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Cash-Secured Put / The Wheel
BEGINNER income Uncapped riskGet paid to wait to buy a stock you like.
When to use it
Bullish-to-neutral on a quality ticker, elevated IV rank. Sell a 30–45 DTE put around 0.30 delta; exit at ~50% max profit. If assigned, you own the shares and sell covered calls (the Wheel).
Max profit
The premium collected.
Max loss
Strike − premium, if the stock goes to zero (you own it).
Payoff at expiry
illustrative shape — not to scale
■ profit zone
■ loss zone
X axis = stock price at expiry →
How it's built
Strikes shown low→high. Sell = collect premium · Buy = pay premium for protection or upside.
Hermes-evaluated setups
High-conviction per-ticker applications — setups with a confidence-adjusted win rate ≥ 80% over ≥20 backtested trades (95% lower bound — honest for the sample size, never a raw 100%). Avg P/L is the mean profit/loss per one-contract position.
| Ticker | Win Rate | Avg P/L / contract | Sharpe | Trades | DTE |
|---|---|---|---|---|---|
| NDX | 81% | +$2,381.00 | 1.1 | 41 | 21 |
| CASY | 85% | +$364.00 | 4.0 | 43 | 21 |
| DE | 83% | +$288.00 | 2.4 | 30 | 30 |
| NOC | 85% | +$235.00 | 1.4 | 43 | 21 |
| AVGO | 89% | +$227.00 | 2.6 | 30 | 30 |
| META | 82% | +$216.00 | 1.3 | 62 | 14 |
| INTU | 85% | +$207.00 | 1.6 | 63 | 14 |
| PANW | 81% | +$171.00 | 2.0 | 42 | 21 |
| LNG | 85% | +$160.00 | 2.8 | 43 | 21 |
| COST | 87% | +$158.00 | 1.9 | 63 | 14 |
| CAT | 81% | +$116.00 | 0.8 | 43 | 21 |
| LIN | 83% | +$110.00 | 1.0 | 63 | 14 |
| CVLT | 84% | +$108.00 | 2.2 | 42 | 21 |
| CEG | 87% | +$103.00 | 2.9 | 39 | 21 |
| STRL | 88% | +$102.00 | 3.1 | 43 | 21 |
| PHM | 89% | +$96.00 | 7.7 | 30 | 30 |
| ABNB | 83% | +$90.00 | 2.0 | 30 | 30 |
Backtested results are not a guarantee of future performance.