About this template
Multiple Ticker Wheel Strategy (Up to 4 Tickers)
This bot can be used to do up to 4 tickers wheel strategy. The options wheel strategy is a method where a trader continuously sells cash-secured puts until assignment, at which point they start selling covered calls against the assigned shares. Once the covered calls are assigned, they start the process over again by selling more cash-secured puts.
For This bot tags are very important. Both bot tags and positions tag. Feel free to ask any questions.
Before I explain the bot let me highlight manually entered operations for this bot:
- If shares are assigned, you must manually import shares and tag that position either “equity 1” or “equity 2” or “equity 3” or “equity 4” respectively. Also, remove bot tag called “import assigned equity 1” or “import assigned equity 2” or “import assigned equity 3” or “import assigned equity 4” respectively.
- If you receive alert “close long leg of put spread equity 1” then override your put spread from bot and go to broker side and close the long put leg to make sure you get assigned shares. And import those assigned shares next day following above step.
Summary:
- All inputs are provided bot level inputs except for manually tags.
- You can use this bot if you only want to do covered call strategy by keeping “Open Put Spread 1” switch off and importing/opening long equity position and tagging that position with “equity 1”. Bot will start selling covered call using covered call bot level inputs.
- I use this bot mainly to import shares assigned to me from my other bots to quickly sell covered call at the money with short duration to get rid of those shares in profit by setting “Profit on Equity 1 to Sell covered call” input to 0.
Scanner “Put Spread Equity 1”:
Bot starts with Credit Put Spread (Cash covered Put) only If
- bot’s “Open Put Spread 1” switch is turned on
- Underling equity 1 price is blow “Limit Price to Sell Put 1” bot input
- Bot has 0 put spared of equity 1
- Bot has 0 long shares of equity 1
- Intraday RSI of equity 1 is blow “Put RSI Check” bot input
- Bot doesn’t have “import assigned equity 1” tag,
- Equity 1 doesn’t have earning less than “Earning Check” bot input.
Also, after opening put spread bot tags that position with “put spread 1”.
The scanner will not open credit put spread if bot has currently tagged with “Import assigned equity 1”. This will prevent bot from opening put spread if in previous day you were assigned shares from previous expired put spread. This tag is automatically tagged in “Manage Tags for Put Spread” automation based on bot checking previously expired put spread on expiry date at closing market time.
Let’s talk about inputs in above scanner:
“Open Put Spead 1” Bot level Switch: this switch will help bot to open put spread for only ticker you are doing wheel strategy for. Ex. If you are only doing 2 tickers on this bot just turn on the switch on for first 2 tickers. And leave ticker 3 and ticker 4 switch off so it will not open put spread for those.
“Limit Price to Sell Put 1” Bot level input: This will help you to control put spread to open only after stock is dropped below this price. If you don’t care about this control, then set it up 99999 for this input and bot will open put spread as long as all the above requirements are met in above scanner.
“Put RSI Check” bot level input: this will help you to sell put spread only if RSI below 70 level (Over bought level). Or which ever level you want to set at it at. And if don’t care about this control set it to some high number
“Import assigned equity 1” Bot tag: This is just to prevent bot from opening new put spread if you are assigned shares from previously expired put spread. Make sure under OA platform setting for In-the-money Position Action option is set to “Override position and manually enter results”
“Earning Check” bot level input: Bot will not open put spread if equity 1 is having earnings within this many days.
“Put spread 1” position tag: This is to associate this put spread with ticker 1 input.
Rest of the scanners are same copy except the ticker changes.
Monitor “Open Covered Call Spread”
Bot will only open covered call if
- bot has long share position
- Tagged with “equity 1” tag
- Equity 1 P/L is more than “Profit on Equity 1 to Sell Covered call” bot input
- Equity 1 position doesn’t have “covered call already sold 1” tag.
Also, as soon as bot opens up call spread, it will tag equity 1 with “cover call already sold 1” tag and call spread position with “call spread 1” tag. This automation will go through all 4 equity position in similar way.
Let’s talk about inputs in above monitor:
“equity 1” position tag: Very important manually equity tagged tag. When you manually import assigned shares from previously expired put spread you need to manually tag that position with “equity 1” otherwise bot will not sell covered calls. Also, remove bot tag called “Import assigned equity 1” otherwise bot will not sell covered call.
“Profit on Equity 1 to sell covered call” bot input: This is $ value profit on equity be for selling covered call. Ex. if you want to make at least $500 on equity before selling covered call the set this value to 500. Bot will not sell covered call until your equity 1 is at least $500 in profit. I usually keep this value to $0 to make sure this bot will not sell covered call until equity is profit first. Technically you can put negative value for this if you want to sell covered call early but not recommended.
“covered call already sold 1” equity position tag: This will prevent bot from opening covered call on a equity if bot has already sold covered call.
“call spread 1” call spread position tag: just to keep a track of that this covered call belongs to equity 1
Monitor “Manage Tags for Put Spread”:
This automation is to manage Put Spread. The Automation will check if put spread is going to be assigned or not. So, if underlying price is below short put strike price but higher than long strike it will tag bot “import assigned equity 1” tag and send alert to import assigned shares. In this case you will most likely get assigned shares. This monitor also checks if underlying price is below long put strike. In this case the bot will alert you to close the long leg of put spread. In this case you must override the position in the bot and go to your broker side and close the long put. This is because if you don’t close the long put your broker will cancel out short put with long put and you will take max loss of the spread without assignment. And once you do get assigned shares import it into bot and tag that position with “equity 1” tag.
Monitor “Covered Call Monitor”
This monitor will only activate on expiry day and after 11:45 am. It will check if short call delta is greater than 0.5 (very high chance of assignment) then it will close call spread and tag the bot “sell equity 1”. This tag then will be used by “Sell Equity” monitor to close the equity 1 position as well. So the idea is bot will mimic that cover call will be assigned end of the day and you will loss your equity by just simply closing both equity position and call spread position.
Monitor “Sell Equity”:
Simply this monitor is to close associated equity if covered call is going to be in the money in expiry day and after 11:45 am. Just like mentioned in above “Covered Call Monitor” monitor.
Monitor “Remove Covered Call sold tag for cancelled position”:
Just a Tag monitor to remove tags from equity if covered call position didn’t opened due to cancelled position so that bot can try opening covered call again on next automation period.
Market Close “Remove Tags from Equity” & “Remove Covered Call sold tag for auto exit call option”
Just another closing day tags management automations