Rinse and repeat as income strategy until $XYZ declines to $98 Sell Oct 15, $98 Put ($98-$2 premium received) Goal: To purchase $XYZ at $98/share with a target of $120 Likewise, once a security is acquired, selling Covered Calls instead of Sell Limit Orders also provides a better risk/return profile when attempting to sell the stock at a higher price. Using Cash Secured Puts instead of Buy Limit Orders, provides a better risk/return profile and is the preferred method to acquiring stock. This generates an income while the investor waits for both the purchase and sale of a security. This is sometimes referred to as the Wheel Strategy. Combining both Cash Secured Puts and Covered Calls is a great way for investors to buy low (using cash-secured puts) and sell high (using covered calls) and maximizing the income and capital appreciation of the stock or ETF.