The Options Wheel Strategy ETF Most Income Investors Have Never Heard of That Pays a ~12% Yield

1 hour ago 6

Tony Dong

Fri, July 3, 2026 astatine 11:57 AM CDT 4 min read

Quick Read

WEEL automates the options instrumentality strategy: The ETF systematically sells cash-secured puts, past transitions to covered calls aft assignment, allowing investors to outsource an different progressive options strategy.
Performance has been competitory truthful far: Since launch, WEEL has outperformed JEPI connected some full instrumentality and risk-adjusted return, though its comparatively abbreviated way grounds means longer-term results stay to beryllium seen.
Higher fees and smaller plus size are the biggest drawbacks: A 0.99% nett disbursal ratio and astir $39 cardinal successful assets marque WEEL a specialized ETF that investors should show alongside its concern strategy.
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Among the galore investing communities connected Reddit, 1 that seldom gets the aforesaid attraction arsenic r/WallStreetBets is r/ThetaGang. The sanction comes from theta, the options Greek that measures clip decay. Rather than buying speculative options, members of the assemblage mostly similar to beryllium connected the other broadside of those trades by selling options and collecting premiums arsenic clip passes.

One of their favourite strategies is known arsenic the wheel. It starts by selling cash-secured puts connected a banal oregon ETF. If the enactment expires worthless, you simply cod the premium and merchantability different put. If you're assigned, you bargain the shares astatine the onslaught terms and instantly power to selling covered calls against that position. Once those shares get called away, you spell backmost to selling cash-secured puts and repetition the process. The downside is that the strategy is reasonably hands-on. You request to recognize options, show positions, and negociate assignments.

For investors who would alternatively outsource that work, there's different option. The Peerless Options Income Wheel ETF (WEEL) is the archetypal ETF built astir systematically implementing the instrumentality strategy. Here's what investors should cognize astir however WEEL works and however it has stacked up against much established covered telephone ETFs.

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What Is WEEL?

WEEL begins by penning out-of-the-money (OTM) cash-secured enactment options connected a portfolio consisting chiefly of assemblage ETFs, though it whitethorn besides usage different liquid ETFs with elevated implied volatility. Current exposures see areas specified arsenic golden miners, utilities, Chinese net stocks, the Nasdaq-100, emerging markets, software, homebuilders, energy, and silver, among others.

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