Running a TMFC wheel strategy lets you generate consistent premium income on Motley Fool 100 Index ETF while setting your own entry and exit prices on the underlying. Motley Fool 100 Index 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 TMFC, and if assigned, sell calls at strikes where you'd be happy to sell. Use our scanner to find the best TMFC 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 TMFC, 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 TMFC wheel from a losing one.
Under normal circumstances, at least 80% of the fund's total assets (exclusive of any collateral held from securities lending) will be invested in the component securities of the index. The index was established by TMF in 2017 and is a proprietary, rules-based index designed to track the performance of the 100 largest, most liquid U.S. companies that have been recommended by TMF’s analysts and newsletters. 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 TMFC wheel strategy by delta, premium yield, IV rank, and days to expiration, so you can deploy capital where the math works. Build your TMFC wheel strategy on data, not gut feel — and let the options wheel do what it does best: pay you to wait.
