Hello again everyone! Oh what a week it’s been, Jesus just keeps showing up and pouring out His grace in my life! I really can’t describe it, but I hope today if you don’t yet know Him, you’ll simply ask Him to be your Lord and Savior. He will gladly accept, no matter what you’ve ever done, said, or been. He will then walk with you, guide your steps, provide wisdom, healing, purpose, and the list just goes on and on. Hallelujah!
Now, if you’ve ever considered trading the wheel options strategy then you’ve no doubt ventured into some pretty risky corners of the market. Away from the diversity of broad based indexes or the modicum of security fortune 500 companies at least provide.
More than likely, asset selection was entirely dependent on share price and I certainly get it. It’s a tough pill to swallow finding out we need more than $50,000 to trade the best ETF’s out there. I for one don’t have a spare $50k under my mattress. So, I’ve traded what I could afford and unfortunately walked away burned more than once. However, this week I went about searching for assets that I could trade the wheel strategy on consistently without the worry of bag holding a potential bankruptcy case.
What I found, were 7 different ETF’s that I would personally feel comfortable owning for as long as it takes. Thus, in today’s post I wanted to share with you the 7 assets I believe are the safest wheel strategy ETF’s currently available with at least workable options liquidity.
Signature Series – Wheel Strategy Spreadsheet
Before we dive in to the safest wheel strategy ETF’s, you may also want to have a look at my Signature Series – Wheel Strategy Spreadsheet. I took great care to create a simple but robust spreadsheet that doesn’t require a learning curve, looks great, and just simply works. If that isn’t of interest, I’ve also created a free wheel strategy spreadsheet that you can find on the free trading tools page as well. Either spreadsheet will do the job of keeping you up to date on all your wheel options strategy trades.
7 Safest Wheel Strategy ETF’s
Edited 7/14/25 – Included SPLG & combined JEPI/JEPQ
Now, before I share the 7 ETF’s I found I have to point out that every one of them is currently less than $60 per share. So, at most to trade them you’ll need $6,000 of capital. That’s a far cry from the $60,000 we need to trade similar ETF’s. Additionally, 4 of them are under $30 per share including my favorite of the bunch.
Still, at this price point a word of caution is necessary before we continue. Personally, I like each asset on this list and I even own 4 of them already in my portfolio. So, my word of caution isn’t about the potential safety of these assets. Rather, it’s about the options liquidity, or the potential lack thereof.
As we move forward I’ll point out the ETF’s with potential liquidity concerns as well as those assets that have been growing their options market consistently. Listed below are the 7 safest wheel strategy ETF’s listed in order of highest share price to lowest share price.
7. SPDR Portfolio S&P 500 ETF
Symbol – SPLG
Current Price – $73.50
The new first on this list is SPLG or essentially the S&P 500 ETF. Driving back from Oklahoma today I couldn’t help but wonder why I didn’t include it on the list. I think partly due to the higher price but even at $73 it’s probably the best option under $20k and options liquidity has come a long way, very fast. I suspect one day soon we may see the options market here among the more liquid offerings available.
I don’t think I need to explain this one further. SPLG is basically SPY with a different name and it moves stride for stride with the Index. I believe I purchased my first shares of SPLG in 2020 after covid but I’d have to look up some old spreadsheets to confirm that. Either way, it’s one of my largest holdings and now that options volume has stepped up I may be adding more in the near future.
6a. JPMorgan Equity Premium Income ETF
Symbol – JEPI
Current Price – $56.76
Edited 7/14/25 – Combined JEPI/JEPQ
Second on our list is JEPI or the JPMorgan Income ETF. I personally hold this asset in my income based portfolio and have for nearly 3 years now. I’ve been more than pleased with it’s performance although price appreciation this year hasn’t been as stellar. It’s a covered call based fund though so price appreciation may always be second fiddle to income generation.
However, because the fund initiates that covered call strategy it also means receiving a respectable yield. Currently, JEPI is offering about a 9% yield but that can change slightly based on the premiums they’re able to collect. Thus, if you’re considering the wheel strategy and eventually have to hold shares you’ll more than likely be pleased with the continuing income.
Finally, of all the assets on this list JEPI has the second least liquid options market. You won’t find much premium or volume on the call side of any expiration unless trading right at the money. There is slightly better of both on the put side but that’s to be expected of an asset that doesn’t primarily prioritize price growth.
In a way, to trade the wheel strategy on this ETF I may;
- Sell a cash secured put to begin
- Let JPMorgan handle the covered calls until a profit is achieved
- Then sell an at the money or even in the money call to eliminate the shares
In all, JEPI is certainly one I like on this list. They have enough options liquidity to make it possible and I’ll collect a healthy dividend if I do hold the shares. Option liquidity may be light but has definitely grown in the past year. When I first began buying shares here I couldn’t have traded an option if I tried.
6b. JPMorgan Nasdaq Equity Premium Income ETF
Symbol – JEPQ
Current Price – $54.36
Edited 7/14/25 – Combined JEPI/JEPQ
Next is JEPQ or the JPMorgan Nasdaq Income ETF and it has many of the same advantages as JEPI above. The only real difference here is the index it’s tracking; the Nasdaq in this case. I’ve held JEPQ in my income portfolio for as long as I’ve held JEPI and my thoughts on it are exactly the same. It’s been a pleasant experience with a regular and consistent level of monthly income.
While either JEPQ or JEPI are, in my opinion fine to hold, JEPQ does have a couple of bonuses that may make it more attractive.
First, because the Nasdaq is a more volatile ETF, premiums are generally higher. Thus, so is the income JEPQ is able to generate from their covered call strategy. At current, JEPQ is offering about 11% in yield compared to JEPI’s 9%. Not a life altering difference but hey, 2% is 2%.
Second, JEPQ has better put options liquidity when compared with JEPI at most options expirations. As such, out of the money strikes can still offer a decent premium at a potentially better entry price on the shares.
All that said, JEPQ, like JEPI, doesn’t offer much on the call side as it stands today. Similar to JEPI, trading right at or in the money to collect a premium is the only option when its time to part with the shares.
5. iShares MSCI Emerging Markets ETF
Symbol – EEM
Current Price – $48.26
Moving along, the Emerging Markets ETF or EEM is next on the list and options liquidity is no issue here. EEM has maintained one of the most liquid options markets for as long as I’ve been trading. They may not return the highest of premiums but for a relatively stable ETF that is to be expected.
For those not familiar with EEM or it’s top holdings, most are household names, at least in my house. They are; Taiwan Semiconductor, Samsung electronics, Tencent, and Alibaba. Obviously not top US based companies but capable performers none the less.
In all, EEM won’t make or break the bank to consider the wheel strategy. At around $5,000 dollars for 100 shares EEM is a relatively safe option for those not sure where to begin their wheel career. I think there are certainly many worse options being marketed and propagated today.
4. Schwab U.S. Large-Cap Growth ETF
Symbol – SCHG
Current Price – $29.35
Moving into the very affordable category, first up is SCHG, the Schwab Large Cap Growth ETF. I started buying this fund in my growth portfolio a little over a year ago and it’s ballooned into my 4th largest holding. The only funds I hold in excess of SCHG are VTI, QQQM, and SPLG. To say I like this one would be an understatement and I only have plans to buy more going forward.
As early as last year, when I began buying SCHG there was no options liquidity to speak of but it seems other traders are starting to take notice that SCHG offers a stellar ETF at a meme stock price. Volume and premiums are still a work in progress but for the aspiring wheel trader looking for better assets to potentially hold, SCHG is workable.
In total, SCHG won’t return much in premium and volume is spotty at best as of today. But what they lack in the options market, I think, is more than made up for in fund quality.
3. iShares MSCI Brazil ETF
Symbol – EWZ
Current Price – $27.53
Another possible wheel strategy candidate is the Brazil ETF or EWZ. Similar in nature I feel to EEM, EWZ offers a modest premium across most strikes. However, they, just like EEM, boast one of the more liquid options markets outside of those not named SPY or QQQ. There shouldn’t be any issue finding, placing, or exiting a trade at any preferred amount. In fact, it may be possible to earn more than 1% per month in income, depending on volatility and timing.
Now, having said that, I also need to point out that EWZ could be the most risky asset on this list of the safest wheel strategy ETF’s. I don’t personally hold them but would be more than willing to if I needed a wheel asset. I suggest EWZ may be more risky because they have been in a downtrend since 2008. Still, since covid they haven’t traded below $20 a share and are generally around $30 per share.
Finally, one last thing to point out is in regard to the dividend yield on EWZ. Currently, EWZ yields 3.74% but they only make payments twice a year. This makes timing expirations a little more important for those prioritizing the wheel strategy for income.
2. SCHWAB U.S. Dividend Equity ETF
Symbol – SCHD
Current Price – $27.53
Next is SCHD, the Schwab Dividend ETF. I personally hold this fund in my retirement account with big dreams of one day using the dividend it pays as an income stream. I currently hold slightly less SCHD than its counterpart SCHG but only have plans to buy more going forward.
SCHD is my favorite ETF on this list of affordable wheel assets. In my opinion, it offers a little of everything I personally look for in an investment. They have a respectable yield of 3.81%, prospect of price appreciation, and potential for dividend growth over time. Throw in income from options trading as well and SCHD just looks great from where I stand.
While SCHD is my preferred “safe” wheel asset, market participants are still acclimating to trading options here so liquidity remains light. However, just like SCHG, what they lack in the options market they make up for in quality.
1. U.S. Global Jets ETF
Symbol – JETS
Current Price – $25.03
Finally, last but not least is the Airline ETF or JETS. I don’t personally own any JETS in my portfolio but would be willing to if I were considering a new wheel ETF. This ETF is a collection of every airline that I know exists. They include, to name a few, Delta, Southwest, United, and American Airlines.
Additionally, JETS is supported by a liquid options market with very attractive premiums. I think partly due to recency bias when covid derailed the entire industry. That type of event has only happened once in my lifetime so I feel reasonably safe including it on this list of the safest wheel strategy ETF’s.
Of all the assets in this list, JETS offers the most attractive premiums out of the money. At current, the 33 DTE 20 delta puts bring in about 1.5% in premium. Annually, that is just under 17%. On the call side, we’ll have to go out a little further in time to get premium out of the money but at 68 DTE the 20 delta calls yield about 1% a month, or almost 12% annually. Not bad for an ETF currently trading around $25 a share and comprised of companies most wouldn’t mind holding individually.
Final Thoughts
Well that just about wraps up this list of the safest wheel strategy ETF’s I could find. While meme stocks continue to fill up the reddit posts and traders go about trading the next Palantir stocks. I’ll just be collecting a respectable income on assets I’m more than willing to hold for as long as I need.
That said, don’t go rushing off to buy anything just yet. I’m just a stranger on the internet telling you what I think or what I like. First, conduct the prerequisite reconnaissance to determine if any of these ETF’s are deserving of a spot in your portfolio. After which, you can begin to consider the potential income generating characteristics of the wheel strategy on any one of the safest wheel strategy ETF’s I believe currently exist.
Until the next post.
God bless,
Jeff
