What exactly is the Wheel Strategy in one pass? It's a two-phase income cycle built around selling options on stocks you're willing to own.

Phase one: you sell a cash-secured put and collect premium for agreeing to buy 100 shares at a specific price.

Phase two: if assigned, you sell covered calls against those shares until they get called away, then return to phase one.

A $40 strike with $1.20 in premium means $4,000 in reserved cash and a $38.80 effective cost basis if assignment happens. Two trade types, one repeating loop.