# Income and protection strategies

Positions that collect a premium or limit a loss, each with what it can make, what it can lose and what happens when it is assigned.

Canonical page: https://optionsbeacon.pro/learn/topics/strategies

1. [Cash-secured put](https://optionsbeacon.pro/learn/cash-secured-put.md): A cash-secured put is a put option that is sold while the seller keeps enough cash to buy 100 shares at the strike price if the put is assigned.
2. [Covered call](https://optionsbeacon.pro/learn/covered-call.md): A covered call is a call option written against 100 shares of the stock that the writer owns. The writer receives the premium and must deliver the shares at the strike price if the call is assigned.
3. [The wheel strategy](https://optionsbeacon.pro/learn/wheel-strategy.md): The wheel strategy is a rotation between two positions on one stock. Cash-secured puts are sold until one is assigned, then covered calls are written on the shares until they are called away, and the rotation starts again.
4. [Collar](https://optionsbeacon.pro/learn/collar.md): A collar is a position of 100 shares, one put bought with a strike price below the stock price and one call written with a strike price above it. The put sets a floor under the loss and the call sets a ceiling on the gain.

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Educational content from Options Beacon. It is not investment, tax or legal advice, and not a recommendation to buy or sell any security or to use any strategy. Options involve risk and are not suitable for all investors; an option seller can lose far more than the premium received. Before trading options, read [Characteristics and Risks of Standardized Options](https://www.theocc.com/company-information/documents-and-archives/options-disclosure-document).

Articles are drafted with AI assistance and checked against the sources listed on each page.