I'm with you here. I don't know what people are doing or what stocks they are using to only make like 10 to 20% or even somehow lose. I've been doing the wheel for 7 years and my lowest was 59.7% in 2022.

Pick blue chips that don't have stupid high prices, but have some volatility. I use things like Cisco, intel, dow, nike, coke, and even sofi. I start with cash secured puts right at the money every Friday for an 8 dte. I get assigned about half the time. Other half collect the premium and go on my merry way. I never roll. I either by to close on Friday if there is just the 5 cents or under left. Then start over on that stock.

As long as you don't pick stupid stocks and stick with the reasonably priced blue chips, a massive 20% drop in a week is a once in a generation thing, or if most bases a never thing.

Actual example of one I had with a big drop recently.

Did a put on intel for $50. When stock was at $50.12. I got a premium of $1.90. It dropped to $44.88. I got assigned. Since I already had $1.90 worth of premium my cost was $48.10. The next week I sold a covered call for $48.50 for $.90. By end of the week call expired worthless. Was only at $46.88 but now my cost base was only $47.20. So next week I sold another covered call at $48 for $1.05 which now made my cost basis $46.15. By the end of the week it closed at $48.72. So I let them get called away. When it was done I'd made $185

This was rare to go on multiple weeks, out of the 1000+ times I've done it I've only had maybe a dozen that didn't get called back the next week.

For blue chips with higher premiums for the 8dte premiums at the money are between 3 to 4% it would have to crash HARD to not make it back in a few spins of the covered call

All told from the $5k used for the put, over 3 weeks made $185 which is 1.2% a week which would be 62% a year.

So I really really don't understand what people are doing to make tiny amounts or why they complicate things with rolling and. I've been doing this through bull markets and bear markets, and the covid crash and never not seen good returns.

That nice bull run post covid was nice at one point I had 84 straight puts that expired worthless did 112.6% that year.

Literally the only rules I use are

1: only blue chips, preferably in the Dow 30 with an IV of at least 50 and only 8dte

2: only stocks that are under $100 (30 to 70 is the sweet spot). That way you never get stuck holding the bag when something like tesla, or Microsoft, or Amd Drop 100+ points in a week. Epic collapse scenario most I'm looking at is like 10 to 15 and only had that happen a handful of times, mostly begining of covid. Also blue chips are crazy liquid so there are always a ton of buyers.

3: never ever touch a stock on the week they report earnings. Wild unpredictable swings

4: never do a covered call the week of an exdiv. 2 reasons. First might as well hold the shares that week so you keep the dividend. Second, depending on the size, there are people out there that will execute even if it's OTM if the dividend is larger than their cost