ProShares Hedge Replication ETF (HDG) Wheel Strategy

Running a HDG wheel strategy lets you generate consistent premium income on ProShares Hedge Replication ETF while setting your own entry and exit prices on the underlying. ProShares Hedge Replication 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 HDG, and if assigned, sell calls at strikes where you'd be happy to sell. Use our scanner to find the best HDG 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 HDG, 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 HDG wheel from a losing one.

The fund invests in financial instruments that ProShare Advisors believes, in combination, should track the performance of the benchmark. The benchmark seeks to provide the risk and return characteristics of the hedge fund asset class by targeting a high correlation to the HFRI Fund Weighted Composite Index (the "HFRI"). The HFRI is designed to reflect hedge fund industry performance through an equally weighted composite of over 2000 constituent funds. The fund is non-diversified.

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