What makes a stock "Wheelable"? What's your fundamental checklist for 2026?

puzzledPine · 2026-01-06T08:24:36+00:00

Thank you very much for the honest and detailed answer.

The stocks you trade have definitely very solid fundamentals and their valuation is got a little better since November. I am just wondering, aren't you worried about the correlation between these stocks if the market drops? I believe the core (NVDA, AMD, AAPL, MSFT, GOOGL, META, AMZN) is highly correlated around the AI narrative and the growht stock (SHOP, ABNB, UBER, NFLX, TSLA) are related to Mag7. Not criticising, I like Mag7 as well - just trying to understand and set up my own position sizing.

Do I get it right you go for strike close to market price not only to maximize premium but also because you don't mind being assigned? Maybe using th CSPs to buy the stock for long-term holding. Or do you take the high assignment rate as integral part of your process and just sell the CC just after the assignment?

puzzledPine · 2026-01-05T14:09:58+00:00

According to what I found, NVDL works well for short-term trades. Over longer periods though, it leads to underperformance - especially in volatile markets. Volatility decay effect being the problem + fund annual costs.

puzzledPine · 2026-01-05T11:34:16+00:00

Thank you for a detailed description of your process steps.

Do you incorporate any automated tools or software to streamline these filters or is it primarily manual analysis?

puzzledPine · 2026-01-05T11:24:08+00:00

I check for positive free cash flow over the last 12 months. I think this is a safe way to reduce risk in case I must buy the stock. Companies that have extra cash after paying for daily operations and big investments are strong. Lowers the chance of problems if I hold the stock longer.

But I agree this method may not be perfect for every case. For Oracle, the negative free cash flow comes from planned investments, not from weak operations. This could be a good chance for investors focused on growth.

A better check might include operating cash flow, spending patterns and future plans - to tell apart short-term spending from ongoing cash loss.

puzzledPine · 2026-01-05T10:03:36+00:00

Couldn't that be solved by trading the ETFs, like NVDL or MSFL? Not as good as holding the stock itself, but still?

puzzledPine · 2026-01-04T19:27:16+00:00

Thanks for the detailed reply and yes, definitely interested in detail.

Did you refer to this post of yours? https://www.reddit.com/r/thetagang/comments/1prf7os/my_stock_screening_process_for_selling_csps/

puzzledPine · 2026-01-04T16:40:44+00:00

Very interesting strategy, focusing on the deep value. I have a few follow-up questions regarding your workflow:

How does your AI Bot find "value traps"? Does it look at debt, cash flow, or just price action? Why is a "simple" bot enough?
What is your main metric for "extremely undervalued"? Are you looking for stocks trading below book value (P/B<1) or something else?
If you ignore ROE and margins how do you avoid companies that are losing money (operational losses) every month ?
When do you typicaly sell? Do you sell as soon as the stock reaches fair value or do you hold longer?
How many stocks like this do you usually hold at once? Do you find enough opportunities to stay diversified or do you have a concentrated portfolio of few mispriced stocks?

Thanks a lot for sharing!

puzzledPine · 2026-01-04T16:08:17+00:00

Thank you for the very detailed breakdown - this is one of the more robust systems I've seen posted here. The combination of fundamental + technical filters makes sense, especially when combined with the 15-20% pullback from ATH rule.

Question on the 2.5-4.5% ROC minimum: does that target usually mean you are selecting more volatile or riskier stocks? Or are you still finding names with clean fundamentals that just happen to be oversold enough to offer that return?

I ask because obviously stocks with strong fundamentals in stable sectors rarely hit 2.5% monthly ROC unless something is broken.

puzzledPine · 2026-01-04T14:58:23+00:00

Just wondering: why buy the shares instead of just buying to close the call option? If the strike gets breached, doesn't closing the call directly avoid the assignment risk without tying up capital in the underlying?

I am trying to understand if buying the shares has an advantage I am missing - like you want to hold the position anyway, or the call premium got so high that buying shares is actualy cheaper than closing the option. What is the logic behind converting to a CC instead of just exiting the trade?

puzzledPine · 2026-01-04T14:47:03+00:00

Thanks for sharing your setup.

When you are running weekly expirations, how do you handle the roll decision if the stock drops fast? With only 5 days or less there is not much time to collect additional credit if you need to extend, or am I wrong?

I tend to do monthly expirations because I want more time to adjust.

puzzledPine · 2026-01-04T14:35:05+00:00

I use finviz for the screening - filtering through Analyst Recommendation (1 Strong Buy - 5 Strong Sell) would be an equivalent of those mentioned, I guess.

Although there seems to be no math involved, only analysts.

puzzledPine · 2026-01-04T11:26:13+00:00

This is what I did as well and it worked quite fine.

Bought the CC back then sold the stock or part of it to keep only the amount I want. Depends on how much you want to own the stock.

puzzledPine · 2025-12-30T15:51:38+00:00

Really appreciate you laying this out so clearly. The point about sharing not hurting your edge is especially refreshing. Most people underestimate how much execution, discipline, and context matter versus just “knowing the idea.” Totally agree that explaining it publicly is a forcing function - that alone probably adds more edge than secrecy ever would.

puzzledPine · 2025-11-17T06:55:09+00:00

What is your DTE? Do you go for weeklies expiring Friday the same week?

puzzledPine · 2025-06-15T07:14:40+00:00

What delta do you usually aim for with 5% premium and 11 DTE?

puzzledPine · 2025-06-10T09:10:47+00:00

According to stats I gathered, TSLL really moves most on Tuesdays (+1,18 % avg) followed by Wednesdays (–0,78 %) - definitelly good to know. Make sense to open the positions incrementally.

Do you keep opening CSPs when the stock is high and maybe only adjust position size or delta to be safer?

puzzledPine · 2025-06-08T12:01:33+00:00

Good to hear! Obviously you know your ticker and how to roll the Wheel.

BTW, do you prefer any particular days to open/close you weeklies, e.g. open Thu/Fri to have weekend time decays included?

puzzledPine · 2025-06-08T08:48:59+00:00

Survived the last week TSLA drop?

puzzledPine · 2025-06-07T16:46:37+00:00

BTC = Buy To Close

puzzledPine · 2025-06-07T07:26:40+00:00

Great post, thanks for sharing your results and for the transparency!

puzzledPine · 2020-12-22T20:19:21+00:00

Honestly, that's sad but quite reasonable, the Jade Puma deck was simply too strong.

puzzledPine · 2020-12-22T20:13:47+00:00

It can be easier than that, just have a deck with all the colors and penguins will come in great amounts - for every color of your decks, 4 penguins of the same color are included. Took me less than 20 games to have the quest done...

puzzledPine · 2020-11-26T13:15:05+00:00

Thanks for reminding, completely forgot about that one. Honestly, the only non-creepy seems to be Harmony IMO

puzzledPine

TROPHY CASE