Step 8 of 12
Income from options
Selling puts and calls against stock you would be happy to own — tracked as income, with assignments folding into your positions.
The wheel is a conservative options strategy for people who already want the shares. You sell a cash-secured put on a stock you would be glad to buy; if it never gets there you keep the premium, and if it does you own the stock at your strike. Then you sell covered calls against it until it is called away.
Quantic tracks the premium as income alongside your dividends, so your real yield reflects both. When a position is assigned, the shares land in your portfolio at the strike — and if you track that stock as trades, the assignment is recorded as a dated trade like any other.
Options tracking is a Pro feature, and it is tracking only — Quantic does not place, price or recommend trades. Selling options carries real risk, including being assigned stock that has fallen well below your strike.
Key terms
- The wheel
- An income loop: sell cash-secured puts until you're assigned shares, collect dividends while you hold them, then sell covered calls until the shares are called away — and repeat. Every step earns premium or dividends.
- Cash-secured put
- Selling a put while setting aside the cash to buy the shares if you're assigned. You collect a premium up front; if the stock stays above the strike you keep it as income, and if it drops you buy shares you wanted anyway at the strike — effectively a discount, minus the premium.
- Moneyness
- Where the current price sits versus the strike. For an option you sold, in-the-money (ITM) means it's heading toward assignment; out-of-the-money (OTM) means it's on track to expire worthless so you keep the premium. Near expiry, an in-the-money option is at real risk of assignment.
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