The standard wheel strategy has two phases: sell puts, then sell covered calls if assigned. The triple wheel adds a third income layer during the stock ownership phase. It is not for beginners, but for experienced wheel traders, it can meaningfully boost returns.

What Is the Triple Wheel?

The triple wheel strategy works like this:

Phase 1 — Sell Cash-Secured Puts (same as standard wheel) You sell puts on a stock you want to own. Collect premium. If the put expires worthless, repeat.

Phase 2 — Own Stock + Sell Covered Call (same as standard wheel) If assigned, you now hold 100 shares and sell a covered call against them.

Phase 3 — Sell an Additional Put While Holding Stock (the "triple" part) While your covered call is active, you simultaneously sell another cash-secured put at a lower strike. This requires additional capital, but generates a second stream of premium during the stock-holding phase.

Why This Works

During Phase 2 of the standard wheel, your capital is split: shares are tied up in the stock position, and any remaining cash sits idle. The triple wheel puts that idle cash to work.

| Phase | Standard Wheel | Triple Wheel | Put sellingCollecting premiumCollecting premium Stock + covered callOne income streamTwo income streams | Capital efficiency | Moderate | Higher |

You are essentially running two wheel positions simultaneously — one on stock you already own, and one as a new put on the same or different underlying.

Example: Triple Wheel on a $40 Stock

Starting capital: $8,000

  • Sell 1 CSP at $40 strike → collect $1.20 ($120)
  • Assigned at $40 → own 100 shares, cost basis $38.80
  • Sell covered call at $42 strike → collect $0.80 ($80)
  • Simultaneously sell 1 CSP at $38 strike using remaining $4,000 cash → collect $0.90 ($90)

    • Total premium collected during stock-holding phase: $170 instead of $80. That is more than double the income from a single cycle.

    Requirements and Risks

    The triple wheel requires:

  • More capital: You need enough to cover both the stock position and the additional put. For a $40 stock, that means roughly $8,000 minimum.
  • Comfort with multiple positions: You are managing a covered call and a short put simultaneously. If the stock drops hard, you could get assigned on the second put too, doubling your share count.
  • Good tracking: With multiple legs open, it is easy to lose track. OptionsPilot's position tracking helps you monitor all active legs of the triple wheel in one view.

    • The Big Risk

    If the stock drops sharply, you end up owning 200 shares instead of 100. Your average cost basis might be reasonable, but your capital is now fully committed to one stock. This is the core trade-off: higher income in exchange for concentrated risk during drawdowns.

    When to Use the Triple Wheel

    The triple wheel works best when:

  • You have excess cash sitting idle during the covered call phase
  • Implied volatility is elevated, making the additional put premium worthwhile
  • You are wheeling a stock you would genuinely be comfortable owning 200 shares of
  • The market environment is range-bound or mildly bullish

    • Avoid the triple wheel in steep downtrends. The last thing you want is double assignment into a falling market.

    Bottom Line

    The triple wheel is a legitimate advanced technique for experienced wheel traders who have excess capital and want to maximize income. It roughly doubles the premium you collect during the stock-holding phase. But it also doubles your exposure if things go wrong, so size accordingly and track every leg carefully.