Wheel Strategy Simulator

The Enhanced Wheel Strategy

A systematic approach to selling options premium with automatic reinvestment and position scaling:

Sell Puts

Max contracts
cash allows

→

If Assigned

Buy stock at
strike price

→

Sell Calls

On all shares
+ sell more puts!

→

Repeat

Reinvest all
premiums

Reinvest Premiums Dynamic Position Sizing Simultaneous Puts + Calls Scale With Capital

Key Question: With reinvestment amplifying both gains AND losses, does fat-tail reality turn this "income strategy" into a ticking time bomb?

Capital & Stock NEW

Starting Capital: $100,000

Stock Price ($): 100

Annual Drift (%): 8

Implied Volatility (%): 35

Strategy Parameters NEW

Target Delta (Prob ITM %): 20

Weeks to Simulate: 52

Cash Reserve (%): 0 Keep X% cash uninvested (0 = reinvest all)

Max Contracts/Trade: 50 Cap position size per trade

Distribution Model

Fat-Tail df (lower = fatter): 4

Monte Carlo Simulations: 1000

Show detailed single path example

Total Premium

-- avg/week

Put Win Rate

-- contracts

Call Win Rate

-- contracts

Final Return

$-- → $--

Position Scaling

Max DD: --%

Gaussian vs Fat-Tail Comparison

Gaussian Model

Mean Return --

Median Return --

Std Dev --

Win Rate --

Avg Max DD --

Worst 5% --

Best 5% --

Sharpe --

Scaling Metrics

Avg Premium --

Ruin Prob (>50% loss) --

Avg Contracts (P/C) --

Mean Final Equity --

Fat-Tail Reality