First Trust S&P International Dividend Aristocrats ETF (FID) Wheel Strategy

Running a FID wheel strategy lets you generate consistent premium income on First Trust S&P International Dividend Aristocrats ETF while setting your own entry and exit prices on the underlying. First Trust S&P International Dividend Aristocrats 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 FID, and if assigned, sell calls at strikes where you'd be happy to sell. Use our scanner to find the best FID 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 FID, 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 FID wheel from a losing one.

The First Trust S&P International Dividend Aristocrats ETF (the "Fund"), formerly the International Multi-Asset Diversified Income Index Fund, seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of an index called the S&P International Dividend Aristocrats Index (the "Index"). Under normal conditions, the Fund will invest at least 90% of its net assets (including investment borrowings) in the equity securities that comprise the Index. The Fund, using an indexing investment approach, attempts to replicate, before fees and expenses, the performance of the Index.

The Fund's investment advisor seeks a correlation of 0.95 or better (before fees and expenses) between the Fund's performance and the performance of the Index; a figure of 1.00 would represent perfect correlation.

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