Glossary · The Wheel
Basis math
Definition
Each premium lowers effective basis; both legs stack.
Where this appears
From the The Wheel reference sheet, Cycle section.
Lessons that use it
See the reference sheets in the app →
Learn content is for education only — not individualized financial advice, a recommendation, or a solicitation to buy or sell any security. Options involve substantial risk. Examples are simplified and historical patterns never guarantee future results.