# The Wheel Strategy

*Derivatives & Options — Finicade finance glossary*

The wheel sells cash-secured puts until assigned, then sells covered calls on the shares until called away, then starts again. Each leg collects premium, which makes the strategy feel like an income machine in flat and rising markets. What it actually is, is a systematic seller of volatility with capped upside and near-full downside: you're called away from winners and left holding losers, which is exactly the wrong asymmetry in a sharp trend.

**Also known as:** wheel strategy, triple income strategy

**Related terms:** [Cash-Secured Put](https://finicade.com/glossary/cash-secured-put), [Covered Call](https://finicade.com/glossary/covered-call), [Assignment](https://finicade.com/glossary/assignment), [Option Premium](https://finicade.com/glossary/premium), [Option Strategies](https://finicade.com/glossary/option-strategies)

Source: https://finicade.com/glossary/the-wheel-strategy