First Trust Morningstar Dividend Leaders Index Fund (FDL) Wheel Strategy

Running a FDL wheel strategy lets you generate consistent premium income on First Trust Morningstar Dividend Leaders Index Fund while setting your own entry and exit prices on the underlying. First Trust Morningstar Dividend Leaders Index Fund's wheel combines cash-secured puts and covered calls into a repeatable cycle: sell puts at strikes where you'd be happy to own FDL, and if assigned, sell calls at strikes where you'd be happy to sell. Use our scanner to find the best FDL 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 FDL, 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 FDL wheel from a losing one.

The First Trust Morningstar Dividend Leaders Index Fund is an exchange-traded index fund. The investment objective of the Fund is to replicate as closely as possible, before fees and expenses, the price and yield of the Morningstar Dividend Leaders IndexSM.

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 FDL wheel strategy by delta, premium yield, IV rank, and days to expiration, so you can deploy capital where the math works. Build your FDL wheel strategy on data, not gut feel — and let the options wheel do what it does best: pay you to wait.