Cash-Secured Put / The Wheel

BEGINNER income Uncapped risk

Get 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	Regime
LLY	81%	+$864.00	3.1	41	30	BULL
GEV	82%	+$659.00	4.2	36	14	MIXED
HD	90%	+$606.00	3.0	34	52	SIDEWAYS
CEG	81%	+$399.00	1.2	50	21	MIXED
QQQ	89%	+$390.00	5.8	32	56	SIDEWAYS
GLD	90%	+$382.00	4.9	34	53	SIDEWAYS
VXX	81%	+$313.00	1.5	57	21	MIXED
COST	85%	+$309.00	4.2	33	14	SIDEWAYS
VRTX	80%	+$301.00	2.9	40	30	MIXED
TSLA	84%	+$301.00	0.9	83	21	BULL
ETN	83%	+$260.00	2.5	57	21	MIXED
FFIV	84%	+$255.00	2.9	41	30	MIXED
AMAT	81%	+$254.00	2.1	57	21	MIXED
ARM	82%	+$236.00	2.5	46	14	MIXED
NBIS	84%	+$234.00	4.5	31	12	MIXED
TSM	84%	+$233.00	2.2	84	14	MIXED
AVGO	86%	+$208.00	2.2	59	30	SIDEWAYS
SNOW	84%	+$204.00	0.9	84	14	MIXED
ABBV	84%	+$201.00	2.2	41	30	BULL
HUM	81%	+$189.00	0.7	84	14	MIXED
QCOM	86%	+$189.00	2.1	57	21	MIXED
LMT	84%	+$186.00	1.5	84	14	MIXED
V	84%	+$185.00	1.3	41	30	SIDEWAYS
SMH	85%	+$182.00	1.6	84	14	MIXED

Backtested results are not a guarantee of future performance.