Running a DWAS wheel strategy lets you generate consistent premium income on Invesco Dorsey Wright SmallCap Momentum ETF while setting your own entry and exit prices on the underlying. Invesco Dorsey Wright SmallCap Momentum ETF's wheel combines cash-secured puts and covered calls into a repeatable cycle: sell puts at strikes where you'd be happy to own DWAS, and if assigned, sell calls at strikes where you'd be happy to sell. Use our scanner to find the best DWAS wheel strategy setups in real time.
The wheel works best on liquid, high-quality names with stable fundamentals and active options markets — exactly the profile many large-cap leaders fit. The mechanics are simple: sell a cash-secured put on DWAS, collect premium, and either keep the premium if it expires worthless or take assignment at a discount to current price. Once assigned, sell covered calls against the shares to keep collecting premium until they're called away. Choosing the right strikes, expirations, and IV environment is what separates a profitable DWAS wheel from a losing one.
The Invesco Dorsey Wright SmallCap Momentum ETF (Fund) is based on the Dorsey Wright SmallCap Technical Leaders Index (Index). The Fund will normally invest at least 90% of its total assets in equity securities of small capitalization companies that comprise the Index. The Index includes securities pursuant to a Dorsey, Wright & Associates, LLC proprietary selection methodology that is designed to identify companies that demonstrate powerful relative strength characteristics based on that company’s market performance. Approximately 200 companies are selected for inclusion in the Index from the NASDAQ US Benchmark Index.
The Fund and the Index are rebalanced and reconstituted quarterly.Effective after the close of markets on Aug. 25, 2023, the Fund’s name will change from Invesco DWA SmallCap Momentum ETF to Invesco Dorsey Wright SmallCap Momentum ETF. No other changes were made to the Fund. See the prospectus for more information.
The difference between a wheel that compounds and one that bleeds comes down to strike selection, IV timing, and discipline on assignment. Our scanner handles the heavy lifting: it ranks every leg of the DWAS wheel strategy by delta, premium yield, IV rank, and days to expiration, so you can deploy capital where the math works. Build your DWAS wheel strategy on data, not gut feel — and let the options wheel do what it does best: pay you to wait.
