Free tool
Wheel strategy account checker
One cash-secured put needs enough cash to buy 100 shares. So your account size decides which stocks you can wheel and how many at once. Enter your numbers to see what fits, with some cash kept in reserve.
Example numbers are filled in. Change any box and the results update. Educational only, not financial advice.
How the numbers work
- Cash you can put to work: your account minus the reserve. I keep at least 12% in cash so an assignment or a bad month doesn't squeeze me.
- Highest strike: working cash ÷ 100, because one contract covers 100 shares. Split across more positions, each one has to be smaller.
- That stock uses: how much of your working cash one put on that stock would tie up (price × 100).
Picking stocks that fit
Don't pick a stock just because it fits your account. Start with companies you'd be glad to own for years, then see which ones your cash can cover. If none fit yet, a smaller position on a cheaper quality stock, or paper trading, beats stretching into something you don't trust.
The full walkthrough is in Part 6: The wheel strategy with a small account ($5,000). To see how much income an account size could make, try the options income calculator.
Questions
How much money do I need to start the wheel strategy?
Enough to buy 100 shares of a stock you would want to own. A $30 stock needs $3,000 set aside, and a $50 stock needs $5,000. Many people start with one position and add more as the account grows.
Can I do the wheel with $5,000?
Yes, one position at a time on a quality stock priced around $40 to $50. If you keep a 12% cash reserve, that caps the strike at about $44. Part 6 of Wheel 101 walks through it step by step.
Why keep cash in reserve?
A reserve gives you room when things go wrong, like getting assigned while you have other trades open. It also means you are never forced to close a trade at a bad time.