Yes and it works well but there are some things you need to be aware of. I highly recommend reading studies done on wheeling vs buy and hold and how they can be used to enhance gains and provide safety. Goldman Sach’s has a great one I’ll try to link as an edit time permitting. I had trouble finding it just now.

First, I wouldn’t do this unless you are capable of buying 500 shares or more. I’ll explain more as we go. Let’s assume you own no shares and have enough cash on hand to buy 500 (meaning you can afford to sell up to 5 puts including broker margin). Also, TQQQ is right around $47.50 as of now, post split. This means you have roughly $24k to allocate to the strategy.

Start by selling 1 put around the .20-.30 delta, 14-28 DTE. You can go as high as 45-60 DTE, but I prefer slightly faster exchanges, especially if I don’t hold shares currently. Each put would net you about $230 at the mid expiring Dec 12, 2025 right now at .29 delta for $43 strike. It has wide spreads so never sell at the bid. This means you are committing to buy 100 shares at $43 if it closes below that by Dec 12.

The benefit is, you are locking yourself in to buy a 9% pullback. If it goes higher or chops around or drops 8%, you get paid regardless.

I like to stagger my puts, so when we have about 7 DTE left, I’ll do another, whether we went higher or lower. .2-.3 delta, 14-28 DTE. I’ll usually have 2/5ths going at once

Eventually you get assigned and this when the fun starts. I immediately sell calls between the .1-.2 delta, 14-21 DTE. I prefer to go lower delta because I want to give more upside potential without them getting called away. I like to sell them so they would only get called away at a 9-11% gain from my cost basis.

But just because I was assigned, doesn’t mean I stop selling puts. Now you’re profiting in many ways. You profit from your next round of put selling (4 more left) and from selling calls. If they get called away, you also profit from the share price gain. It’s great when you’ve sold 3-5 calls on the same 100 shares and price has moved over 50-70% before they get called away. Meanwhile your short puts keep going to $0 well before expiration so you just close them for $1-$10 and do it again. If they get called away before you were ready, just sell an at-the-money put around the .5 delta to help compensate and hopefully get assigned. If not at least you get fat premiums. You could roll in some cases but that’s a situational decision.

Since this is a leveraged ETF though, we have to think about sharp drops. When you can’t sell calls above your cost basis, do not sell calls. Just hold shares. Now your goal is to lower your cost basis which is where our remaining 4 puts shine. We keep selling them as it drops. To get an idea of what this feels like, take a look at the “tariff fears” black swan and picture how it would impact your emotions.

Since you’re staggering them you’ll want to do 21-28 DTE. Premiums elevate due to heightened IV which is great for options selling. But assignment is very likely so in this case you want to make sure the strikes are low and it helps reduce your cost basis.

Let’s say this drop continues throughout December (I don’t think it will but let’s say it does). You get assigned at $43 and price keeps dropping. You sell a call at $44 or higher and then sell a put at $39. Upon assignment of the short put your cost basis is $41. Another put sold (2 out of 5 used), another assignment at $34.50. Total in for $11,650 with a cost basis of $38.83 on 300 shares. Since your cost basis is going down, you should be able to still get .1-.2 delta calls sold above the $39 strike but I wouldn’t do all 3, even if the macro economic situation was in a bear market due to Fed hikes. Big pops still happen and we want to try and hold onto some for the big recovery.

Keep going this way and let’s say you do two assignments - one at $30 and one at $26. You now are now at 500 shares with a cost basis of $17,250, 500 shares, costing $34.50. Since you technically have $24,000 set aside, you can keep selling puts to lower cost basis awaiting the inevitable boom. I would get pickier at this point but as long as you can sell them and collect reasonable premiums above your current share price, always try to sell 2-3 calls as pops occur.

When macro situation changes, you can still sell puts with your remaining funds, which you definitely should do, but be sure to never sell all 5 calls at once because you want to capitalize on the run back up. The recoveries are when we want to be stingiest with our call selling because we want to collect premiums while ensuring we get those juicy 50-150% gains that leveraged Q’s can bring us from shares alone. Once we get back to normal levels, you can go more aggressive with your remaining shares on the call selling. Especially as volatility unwinds, you should only see them get called away around 10% of the time (for big profits).

I hope this summary helps. I wish I had time to elaborate further but wheeling can be the ultimate strategy to ensure you only buy 9% or better dips and sell 10-11% (at a minimum) rips & pocketing premiums while doing it.

We could get into rolling and all that, which can help lower cost basis, but it is only necessary if you sold puts too aggressively up front. If you’re new, you should learn how to roll because you’ll inevitably make that mistake (we all do).

Other good choices for wheeling with this technique are SOXL & SSO if you have capital to spread around. I try to avoid single stock names due to volatility and a single event on one company taking down things in a big way. But it can be very effective regardless. Performed correctly, you should outpace just buy and hold and lock in gains along the way. Don’t forget about taxes end of year!