Risk Disclosure

Buying and selling options — including cash-secured puts, covered calls, and the combined "wheel" strategy — involves substantial risk of loss. You can lose more than the premium you collect, and in some scenarios you can lose your entire investment in the underlying security. Past performance of any strategy is not indicative of future results.

• Cash-secured puts: if the stock falls below the strike at expiration, you are obligated to purchase the shares at the strike price even if the market price has dropped well below it. You can lose substantially more than the premium you collected.
• Covered calls: if the stock rises above the strike, your upside is capped. You may be forced to sell shares below the prevailing market price.
• Assignment risk: options may be assigned at any time prior to expiration when in the money, including American-style equity options.
• Capital requirements: cash-secured puts require enough cash in your account to purchase the underlying shares if assigned. Margin requirements may change without notice.
• Liquidity risk: some options have wide bid-ask spreads or limited volume; closing a position at a reasonable price may not always be possible.

Before trading options, you should read Characteristics and Risks of Standardized Options, published by the Options Clearing Corporation (OCC). A current copy is available from your broker or at theocc.com.

Nothing on this site is personalized investment advice. We do not know your specific financial situation, objectives, risk tolerance, tax situation, or constraints. Before trading options, you should consult a licensed financial advisor, broker, tax professional, and/or attorney.

Copper City Ventures LLC is not a registered investment adviser, broker-dealer, or financial planner. We do not manage money, place trades for clients, or provide individualized recommendations.

Email support@wheelmethod.com.