{"id":690,"date":"2024-12-28T10:00:00","date_gmt":"2024-12-28T02:00:00","guid":{"rendered":"http:\/\/3.68.57.190\/?p=690"},"modified":"2026-06-12T20:06:56","modified_gmt":"2026-06-12T12:06:56","slug":"sp500-spy-etf-wheel-strategy","status":"publish","type":"post","link":"https:\/\/slashtraders.com\/en\/blog\/sp500-spy-etf-wheel-strategy\/","title":{"rendered":"3x S&amp;P 500 ETF Returns With SPY Wheel Strategy"},"content":{"rendered":"<p class=\"wp-block-paragraph translation-block\">Do you want to <a href=\"https:\/\/slashtraders.com\/en\/blog\/best-way-learn-options-trading\/\" target=\"_blank\" rel=\"noreferrer noopener\">learn options trading<\/a> to maximise returns from S&amp;P 500 ETF?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We'll show you the Wheel Strategy to multiply profits from S&amp;P 500 index.<\/p>\n\n\n<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<span class=\"poMJ27fkeUj8XYIyER0BNacAPVFCZ\"><iframe title=\"3x Your S&amp;P 500 ETF Returns With Wheel Strategy\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/EFXk-7doMu8?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/span>\n<\/div><\/figure>\n\n\n<p><\/p>\n\n\n\n<h2 id=\"\u70ba\u4ec0\u9ebc\u60f3\u8cb7\u6a19\u666e500\u7684etf\" class=\"wp-block-heading\">Why Invest in S&amp;P 500 ETF?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Most experienced traders recognise <a href=\"https:\/\/www.investopedia.com\/terms\/s\/sp500.asp\" target=\"_blank\" rel=\"noopener\">Standard &amp; Poor's 500 index<\/a> as the most iconic index fund in the world. It tracks the performance of 500 most profitable companies in the US stock market.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Companies included in the S&amp;P 500 make up around 80% of the total market capitalisation, is widely regarded as the best gauge of large-cap U.S. equities, and a favourite among passive investors.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Most people expect an annual return of 9% from <a href=\"https:\/\/slashtraders.com\/en\/blog\/stocks-to-buy-and-hold-forever\/\" target=\"_blank\" rel=\"noreferrer noopener\">buying and holding<\/a> ETFs that track the S&amp;P 500 index.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/SP-500-etf\u516c\u53f8-1024x576.png\" alt=\"S&amp;P 500 etf Inc.\" class=\"wp-image-693\" srcset=\"\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-srcset=\"\" \/><figcaption class=\"wp-element-caption\">Companies tracked by the S&amp;P 500 index.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Some of the most dominant companies in the world, such as Apple, Google, Facebook, Netflix, Disney are included in the index. Tesla was also included in the S&amp;P 500 index for the first time in December last year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Investing in an S&amp;P 500 <a href=\"https:\/\/en.wikipedia.org\/wiki\/Exchange-traded_fund\" target=\"_blank\" rel=\"noopener\">ETF<\/a> is a diversified way of purchasing stocks from all these companies at the same time.<\/p>\n\n\n\n<h2 id=\"\u4ec0\u9ebc\u662f-\u6efe\u8f2a\u6295\u8cc7\u6cd5\" class=\"wp-block-heading\">What Is the Wheel Strategy?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\"><a href=\"https:\/\/slashtraders.com\/en\/blog\/wheel-strategy-stock-picker\/\" target=\"_blank\" rel=\"noreferrer noopener\">The wheel strategy<\/a> is a set of steps to combine <a href=\"https:\/\/slashtraders.com\/en\/blog\/beginner-options-trading-strategies\/\" target=\"_blank\" rel=\"noopener\">trading options<\/a> with stocks to increase the return over the traditional buy-and-hold strategy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">An expert options trader knows that selling options is most profitable when the underlying doesn't <a href=\"https:\/\/slashtraders.com\/en\/blog\/market-volatility-hv-iv\/\" target=\"_blank\" rel=\"noreferrer noopener\">fluctuate<\/a> a lot, which makes the Wheel Strategy perfect for S&amp;P 500 ETFs that are well diversified and prices don't change suddenly.<\/p>\n\n\n\n<h2 id=\"\u54ea\u4e00\u500bs-p-500-etf\u6700\u9069\u5408\u6efe\u8f2a\u7b56\u7565\" class=\"wp-block-heading\">Which S&amp;P 500 ETF Is Most Suitable for the Wheel Strategy?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">There are 3 popular ETFs that track the S&amp;P 500, which are <a href=\"https:\/\/www.marketwatch.com\/investing\/fund\/spy\" target=\"_blank\" rel=\"noopener\">SPY<\/a>, <a href=\"https:\/\/www.ishares.com\/us\/products\/239726\/ishares-core-sp-500-etf\" target=\"_blank\" rel=\"noopener\">IVV<\/a> and <a href=\"https:\/\/investor.vanguard.com\/etf\/profile\/VOO\" target=\"_blank\" rel=\"noopener\">VOO<\/a>. The 3 ETFs have different tracking accuracies, different management fees, so you might wonder which one is most suitable for the Wheel Strategy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Since the Wheel <a href=\"https:\/\/slashtraders.com\/en\/blog\/profitable-trading-system\/\" target=\"_blank\" rel=\"noreferrer noopener\">trading strategy<\/a> uses options to boost the returns on investing the underlying for the long-term, we choose the best ETF by the volume of options traded for each ETF.<\/p>\n\n\n\n<table id=\"tablepress-8\" class=\"tablepress tablepress-id-8\">\n<thead>\n<tr class=\"row-1\">\n\t<th class=\"column-1\">S&amp;P 500 ETF<\/th><th class=\"column-2\">Daily options volume<\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-striping row-hover\">\n<tr class=\"row-2\">\n\t<td class=\"column-1\">SPY<\/td><td class=\"column-2\">2,272,620<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">IVV<\/td><td class=\"column-2\">253<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">VOO<\/td><td class=\"column-2\">111<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<!-- #tablepress-8 from cache -->\n\n\n\n<p class=\"wp-block-paragraph translation-block\">By comparing the  <a href=\"https:\/\/slashtraders.com\/en\/tools\/most-active-options-today\/\" target=\"_blank\" rel=\"noreferrer noopener\">options volume<\/a> for each of the 3 ETFs, we can tell SPY has exponentially more options liquidity than the other 2. So we will choose SPY as the symbol for trading the Wheel Strategy.<\/p>\n\n\n\n<h2 id=\"\u6efe\u8f2a\u6295\u8cc7\u7b56\u7565\u7684\u4e09\u500b\u6b65\u9a5f\" class=\"wp-block-heading\">3 Steps to the Wheel Strategy<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">The Wheel Strategy is a sequence of repeatable steps that we can use to combine <a href=\"https:\/\/slashtraders.com\/en\/blog\/buy-to-open-vs-buy-to-close\/\" target=\"_blank\" rel=\"noreferrer noopener\">selling options<\/a> with holding stocks to buy low and sell high the SPY ETF.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The 3 steps of the SPY options strategy depend on the number of shares you hold:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li class=\"translation-block\">Sell a <a href=\"https:\/\/slashtraders.com\/en\/blog\/cash-secured-put-stock-picker\/\" target=\"_blank\" rel=\"noreferrer noopener\">Cash-Secured Put<\/a> when holding 0 shares.<\/li>\n\n\n\n<li>Sell a Strangle (a Put and a Call) when holding 100 shares.<\/li>\n\n\n\n<li>Sell 2 Call options when holding 200 shares.<\/li>\n<\/ol>\n\n\n\n<h3 id=\"\u6b65\u9a5f\u4e00\u5728\u6c92\u6709\u6301\u80a1\u7684\u60c5\u6cc1\u8ce3cash-secured-put-option\" class=\"wp-block-heading\">1. Sell a Cash Secured Put When Holding 0 Shares<\/h3>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">When we do not own any SPY stock, we can sell a <a href=\"https:\/\/slashtraders.com\/en\/blog\/cash-secured-put\/\" target=\"_blank\" rel=\"noreferrer noopener\">Cash-Secured Put<\/a> that expires in 30 days.<\/p>\n\n\n<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-step-1-sell-put-1024x576.png\" alt=\"wheel strategy step 1 sell put\" class=\"wp-image-2113\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-step-1-sell-put-1024x576.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-step-1-sell-put-300x169.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-step-1-sell-put-768x432.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-step-1-sell-put-16x9.png 16w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-step-1-sell-put.png 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Sell Cash-Secured Put to collect premium and also a chance to purchase SPY shares at discount.<\/figcaption><\/figure>\n\n\n<p><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If SPY does not drop below the strike price after 30 days, we will collect all the premium from the trade.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If SPY price drops below the strike price, we will be assigned 100 shares of SPY at a discount. Then we move on to the next step.<\/p>\n\n\n\n<h3 id=\"\u6b65\u9a5f\u4e8c\u6301\u6709100\u80a1\u7684\u6642\u5019\u8ce3\u4e00\u500bstrangle\" class=\"wp-block-heading\">2. Sell a Strangle When Holding 100 Shares<\/h3>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Now we own 100 shares, we can <a href=\"https:\/\/slashtraders.com\/en\/blog\/best-strangle-options-strategy\/\" target=\"_blank\" rel=\"noreferrer noopener\">sell a Strangle<\/a> that expires in 30 days, which is a combination of a Cash-Secured Put and a Covered Call.<\/p>\n\n\n<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-step-2-sell-strangle-1024x576.png\" alt=\"wheel strategy step 2 sell strangle\" class=\"wp-image-2120\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-step-2-sell-strangle-1024x576.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-step-2-sell-strangle-300x169.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-step-2-sell-strangle-768x432.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-step-2-sell-strangle-16x9.png 16w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-step-2-sell-strangle.png 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Sell a Strangle to collect premium no matter which direction SPY changes, with a chance to buy low or sell high.<\/figcaption><\/figure>\n\n\n<p><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the SPY price stays within the 2 strike prices after 30 days, we collect all the premium from selling options.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the SPY rises beyond the Call strike, we will be forced to sell the 100 shares at a high price. Then we move back to step 1.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">If the SPY <a href=\"https:\/\/slashtraders.com\/en\/blog\/stock-bearish-signals\/\" target=\"_blank\" rel=\"noopener\">price drops<\/a> below the Put strike, we get to purchase another 100 shares at an even lower price. Then we move forward to step 3.<\/p>\n\n\n\n<h3 id=\"\u6b65\u9a5f\u4e09\u5728\u6301\u6709200\u80a1\u7684\u60c5\u6cc1\u8ce3\u5169\u500bcovered-call-options\" class=\"wp-block-heading\">3. Sell 2 Covered Call Options When Holding 200 Shares<\/h3>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Now we own 200 shares of SPY ETF, we can sell 2 <a href=\"https:\/\/slashtraders.com\/en\/blog\/sell-covered-call\/\" target=\"_blank\" rel=\"noreferrer noopener\">Covered Call<\/a> options at the same time to earn twice the amount of premium.<\/p>\n\n\n<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-step-3-sell-calls-1024x576.png\" alt=\"wheel strategy step 3 sell calls\" class=\"wp-image-2124\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-step-3-sell-calls-1024x576.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-step-3-sell-calls-300x169.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-step-3-sell-calls-768x432.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-step-3-sell-calls-16x9.png 16w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-step-3-sell-calls.png 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Sell 2 Calls to collect double the premium, with a chance to sell SPY shares at a high price.<\/figcaption><\/figure>\n\n\n<p><\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">If the ETF <a href=\"https:\/\/slashtraders.com\/en\/blog\/netflix-bearish-options-strategies\/\" target=\"_blank\" rel=\"noopener\">price doesn't rise<\/a> after 30 days, we collect all the premium.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the SPY price increases beyond the Call strike, we will sell 200 shares at a high price and move back to step 1.<\/p>\n\n\n\n<h2 id=\"\u8981\u600e\u9ebc\u8a02\u5b9aput\u548ccall\u7684\u5408\u7d04\u50f9\u6700\u597d\" class=\"wp-block-heading\">How to Set the Strike Prices of Put and Call?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">If we look at the price history of SPY, we can see the ETF price rarely falls beyond the Bollinger Bands. So we can use the Bollinger Bands to set the strike prices for selling Puts and Calls.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/SPY-bollinger-bands\u4e0a\u4e0b\u9650-1024x576.png\" alt=\"SPY bollinger bands upper and lower limits\" class=\"wp-image-712\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/SPY-bollinger-bands\u4e0a\u4e0b\u9650-1024x576.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/SPY-bollinger-bands\u4e0a\u4e0b\u9650-300x169.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/SPY-bollinger-bands\u4e0a\u4e0b\u9650-768x432.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/SPY-bollinger-bands\u4e0a\u4e0b\u9650.png 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">The upper and lower Bollinger Bands can be used to set the strike prices of our options.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">The upper and lower bounds of the SPY Bollinger Bands are currently $376 and $394, so we can use these as the strike prices for <a href=\"https:\/\/slashtraders.com\/en\/blog\/selling-naked-put-options\/\" target=\"_blank\" rel=\"noreferrer noopener\">selling Puts<\/a> and Calls.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Another quick way to set the Strangle prices is to use the <a href=\"https:\/\/slashtraders.com\/en\/tools\/options-scanner\/\" target=\"_blank\" rel=\"noopener\">Options Scanner to find the prices at 0.20 delta<\/a>.<\/p>\n\n\n\n<table id=\"tablepress-11\" class=\"tablepress tablepress-id-11\">\n<thead>\n<tr class=\"row-1\">\n\t<th class=\"column-1\">Symbol<\/th><th class=\"column-2\">Last<\/th><th class=\"column-3\">Strangle details<\/th><th class=\"column-4\">Strangle BP<\/th><th class=\"column-5\">Strangle ROC<\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-striping row-hover\">\n<tr class=\"row-2\">\n\t<td class=\"column-1\">SPY<\/td><td class=\"column-2\">383.63<\/td><td class=\"column-3\">C396 (0.19)<br \/>\nP361(-0.20)<\/td><td class=\"column-4\">4313<\/td><td class=\"column-5\">10.5%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<!-- #tablepress-11 from cache -->\n\n\n\n<p class=\"wp-block-paragraph\">The 0.20 delta Strangle suggested by the options scanner:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Short $396 Call and short $361 Put.<\/li>\n\n\n\n<li>If you don't own any SPY shares, you need $4313 buying power for a 10.5% return on capital.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><a href=\"https:\/\/slashtraders.com\/en\/pricing\/?utm_source=blog&amp;utm_medium=banner\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"126\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/blog-trial-banner.png\" alt=\"blog trial banner\" class=\"wp-image-9717\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/blog-trial-banner.png 1280w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/blog-trial-banner-300x37.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/blog-trial-banner-1024x126.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/blog-trial-banner-768x95.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/blog-trial-banner-18x2.png 18w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<h2 id=\"\u6efe\u8f2a\u6295\u8cc7spy\u7684\u7406\u60f3\u6295\u8cc7\u5831\u916c\u7387\" class=\"wp-block-heading\">Expected Returns of Trading the Wheel Strategy With SPY<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">We can use step 2 to estimate the wheel options strategy returns with SPY. If we assume the fluctuations of SPY rarely exceed our Bollinger Bands, the premium collected from $376 Put and $394 Call is around $1200 per month.<\/p>\n\n\n<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-return-on-capital-1024x576.png\" alt=\"wheel strategy return on capital\" class=\"wp-image-2596\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-return-on-capital-1024x576.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-return-on-capital-300x169.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-return-on-capital-768x432.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-return-on-capital-16x9.png 16w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/wheel-strategy-return-on-capital.png 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Use the premium from selling Strangles to calculate theoretical Return on Capital.<\/figcaption><\/figure>\n\n\n<p><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Since we set aside $77,000 cash to purchase 200 shares of SPY, the monthly return from the premium is 1.6%, which is around 19% per year.<\/p>\n\n\n\n<h2 id=\"\u9577\u671f\u6301\u6709spy-etf\u548c\u6efe\u8f2a\u6295\u8cc7\u6cd5\u7684\u5dee\u7570\" class=\"wp-block-heading\">Differences Between Holding SPY ETF and the Wheel Strategy<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">If <a href=\"https:\/\/slashtraders.com\/en\/tools\/dividend-stock-screener\/\" target=\"_blank\" rel=\"noreferrer noopener\">buying and holding shares<\/a> of SPY can expect 9% average return a year, then we can add 19% more from the premium of the Wheel Strategy, tripling our annual returns on investing in SPY.<\/p>\n\n\n\n<table id=\"tablepress-9\" class=\"tablepress tablepress-id-9\">\n<thead>\n<tr class=\"row-1\">\n\t<th class=\"column-1\">Strategies<\/th><th class=\"column-2\">Holding SPY ETF<\/th><th class=\"column-3\">Wheel strategy<\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-striping row-hover\">\n<tr class=\"row-2\">\n\t<td class=\"column-1\">Minimum investment<\/td><td class=\"column-2\">$383<\/td><td class=\"column-3\">$77,000<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">Annual return<\/td><td class=\"column-2\">9%<\/td><td class=\"column-3\">28%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<!-- #tablepress-9 from cache -->\n\n\n\n<h2 class=\"wp-block-heading\">Best Value Stock for the Wheel Strategy<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">The Wheel strategy is ideal for stable, high-performing stocks. That's why we use the <a href=\"https:\/\/slashtraders.com\/en\/tools\/best-value-stocks\/\" target=\"_blank\" rel=\"noreferrer noopener\">Bullish Value Stock<\/a> list to identify companies that are currently suitable for entering with this strategy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Since we plan to rely on the Wheel strategy for long-term investing, we can focus on <a href=\"https:\/\/slashtraders.com\/en\/blog\/undervalued-dividend-aristocrats\/\" target=\"_blank\" rel=\"noreferrer noopener\">dividend aristocrats<\/a>, companies that have consistently increased their dividends for at least 25 years. We can set our filter to select those with over 25 years of dividend growth.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1280\" height=\"217\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/dividend-aristocrat-settings.png\" alt=\"Dividend aristocrats\" class=\"wp-image-12905\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/dividend-aristocrat-settings.png 1280w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/dividend-aristocrat-settings-300x51.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/dividend-aristocrat-settings-1024x174.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/dividend-aristocrat-settings-768x130.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/dividend-aristocrat-settings-18x3.png 18w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><figcaption class=\"wp-element-caption\">Dividend aristocrats with more than 25 years of consecutive dividend growth.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Then, by arranging the data according to Dividend Yield, we can compile a list of the companies that offer the <a href=\"https:\/\/slashtraders.com\/en\/tools\/dividend-stock-screener\/\" target=\"_blank\" rel=\"noreferrer noopener\">highest yields among the bullish dividend aristocrats<\/a>.<\/p>\n\n\n\n<table id=\"tablepress-64\" class=\"tablepress tablepress-id-64\">\n<thead>\n<tr class=\"row-1\">\n\t<th class=\"column-1\">Stocks<\/th><th class=\"column-2\">Last<\/th><th class=\"column-3\">Dividend yield<\/th><th class=\"column-4\">Years of dividend growth<\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-striping row-hover\">\n<tr class=\"row-2\">\n\t<td class=\"column-1\">SJM<\/td><td class=\"column-2\">$115.05<\/td><td class=\"column-3\">3.81%<\/td><td class=\"column-4\">27<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">SYY<\/td><td class=\"column-2\">$78.96<\/td><td class=\"column-3\">2.55%<\/td><td class=\"column-4\">54<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">BDX<\/td><td class=\"column-2\">$225.12<\/td><td class=\"column-3\">1.84%<\/td><td class=\"column-4\">52<\/td>\n<\/tr>\n<tr class=\"row-5\">\n\t<td class=\"column-1\">MSA<\/td><td class=\"column-2\">$168.97<\/td><td class=\"column-3\">1.17%<\/td><td class=\"column-4\">53<\/td>\n<\/tr>\n<tr class=\"row-6\">\n\t<td class=\"column-1\">SEIC<\/td><td class=\"column-2\">$84.23<\/td><td class=\"column-3\">1.14%<\/td><td class=\"column-4\">33<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<!-- #tablepress-64 from cache -->\n\n\n\n<p class=\"wp-block-paragraph\">The current highest-yielding dividend aristocrat is SJM. If you're looking to invest through the Wheel strategy, you'll need to set aside $23,000 to buy 200 shares.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/sell-sjm-strangle.png\" alt=\"sell sjm strangle\" class=\"wp-image-12909\" srcset=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/sell-sjm-strangle.png 1280w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/sell-sjm-strangle-300x169.png 300w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/sell-sjm-strangle-1024x576.png 1024w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/sell-sjm-strangle-768x432.png 768w, https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/03\/sell-sjm-strangle-18x10.png 18w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">The returns from the SJM Strangle that expires in 30 days is 0.9%.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The SJM 0.20 delta Strangle, which expires in 30 days, is expected to generate an income of $212. This Wheel strategy allows us to boost our monthly income by 0.9%, translating to roughly 11% annually.<\/p>\n\n\n\n<table id=\"tablepress-65\" class=\"tablepress tablepress-id-65\">\n<thead>\n<tr class=\"row-1\">\n\t<th class=\"column-1\">SJM dividend yield<\/th><th class=\"column-2\">Returns from wheel strategy<\/th><th class=\"column-3\">Combined annual return<\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-striping row-hover\">\n<tr class=\"row-2\">\n\t<td class=\"column-1\">3.81%<\/td><td class=\"column-2\">11%<\/td><td class=\"column-3\">14.81%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<!-- #tablepress-65 from cache -->\n\n\n\n<p class=\"wp-block-paragraph\">With an initial yield of 3.81% from holding SJM, using the Wheel strategy can lead to an expected annual profit of around 14.81%.<\/p>\n\n\n\n<p class=\"has-ast-global-color-4-background-color has-background wp-block-paragraph\"><a href=\"https:\/\/slashtraders.com\/en\/blog\/slashtraders-vs-sp500\/\" target=\"_blank\" rel=\"noreferrer noopener\">SlashTraders vs S&amp;P 500: 450% Outperformance, Verified Trades and How to Copy Every Alert<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>Do you know how to trade options to maximise returns from S&amp;P 500 ETF? We'll show you the Wheel Strategy to multiply profits from S&amp;P 500 index.<\/p>","protected":false},"author":1,"featured_media":2106,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"plain-container","ast-site-content-layout":"normal-width-container","site-content-style":"unboxed","site-sidebar-style":"unboxed","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":"","_wp_rev_ctl_limit":"5"},"categories":[3],"tags":[56,12,64,22,14,48,21,11],"class_list":["post-690","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-cn","tag-en","tag-es","tag-fb","tag-options","tag-shop","tag-spy","tag-tw"],"_links":{"self":[{"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/posts\/690","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/comments?post=690"}],"version-history":[{"count":5,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/posts\/690\/revisions"}],"predecessor-version":[{"id":14631,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/posts\/690\/revisions\/14631"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/media\/2106"}],"wp:attachment":[{"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/media?parent=690"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/categories?post=690"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/slashtraders.com\/en\/wp-json\/wp\/v2\/tags?post=690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}