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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 |
|---|---|---|---|---|---|
| GLD | 90% | +$382 | 4.9 | 34 | 53 |
| HD | 90% | +$606 | 3.0 | 34 | 52 |
| QQQ | 89% | +$390 | 5.8 | 32 | 56 |
| AAPL | 88% | +$64 | 2.3 | 59 | 30 |
| XOM | 88% | +$94 | 3.6 | 57 | 21 |
| P | 88% | +$48 | 2.5 | 57 | 21 |
| PLD | 87% | +$23 | 0.7 | 84 | 14 |
| AMD | 87% | +$149 | 0.9 | 83 | 21 |
| AVGO | 86% | +$208 | 2.2 | 59 | 30 |
| KMI | 86% | +$21 | 3.2 | 57 | 21 |
| WMB | 86% | +$35 | 3.0 | 57 | 21 |
| VST | 86% | +$174 | 1.9 | 57 | 21 |
| MMM | 86% | +$121 | 2.3 | 57 | 21 |
| QCOM | 86% | +$189 | 2.1 | 57 | 21 |
| PSX | 85% | +$94 | 1.8 | 84 | 14 |
| MPC | 85% | +$35 | 1.6 | 84 | 14 |
| SMH | 85% | +$182 | 1.6 | 84 | 14 |
| SPG | 85% | +$43 | 1.1 | 84 | 14 |
| COST | 85% | +$309 | 4.2 | 33 | 14 |
| MRK | 84% | +$79 | 3.4 | 41 | 30 |
| OXY | 84% | +$66 | 2.9 | 41 | 30 |
| FFIV | 84% | +$255 | 2.9 | 41 | 30 |
| ABBV | 84% | +$201 | 2.2 | 41 | 30 |
| GD | 84% | +$85 | 1.8 | 41 | 30 |
| RTX | 84% | +$35 | 2.2 | 41 | 30 |
| SOFI | 84% | +$36 | 1.7 | 41 | 30 |
| V | 84% | +$185 | 1.3 | 41 | 30 |
| AFRM | 84% | +$47 | 1.1 | 41 | 30 |
| NVDA | 84% | +$83 | 2.6 | 59 | 30 |
| USD | 84% | +$51 | 1.9 | 59 | 30 |
| NBIS | 84% | +$234 | 4.5 | 31 | 12 |
| TSM | 84% | +$233 | 2.2 | 84 | 14 |
| NUE | 84% | +$49 | 1.2 | 84 | 14 |
| SNOW | 84% | +$204 | 0.9 | 84 | 14 |
| LMT | 84% | +$186 | 1.5 | 84 | 14 |
| TSLA | 84% | +$301 | 0.9 | 83 | 21 |
| CEVA | 83% | +$56 | 2.5 | 57 | 21 |
| GILD | 83% | +$69 | 3.0 | 57 | 21 |
| CVLT | 83% | +$78 | 2.6 | 57 | 21 |
| COP | 83% | +$95 | 1.9 | 57 | 21 |
| GLW | 83% | +$23 | 1.6 | 57 | 21 |
| SSRM | 83% | +$31 | 1.9 | 57 | 21 |
| LULU | 83% | +$117 | 1.7 | 57 | 21 |
| PL | 83% | +$21 | 1.5 | 57 | 21 |
| ETN | 83% | +$260 | 2.5 | 57 | 21 |
| COHR | 83% | +$115 | 1.5 | 57 | 21 |
| SE | 83% | +$66 | 0.8 | 57 | 21 |
| CRWD | 83% | +$125 | 1.0 | 80 | 21 |
| ARM | 82% | +$236 | 2.5 | 46 | 14 |
| HPQ | 82% | +$6 | 1.3 | 84 | 14 |
Backtested results are not a guarantee of future performance.