Warren Buffett has endorsed a simple, powerful income-generating strategy involving options trading. The “wheel” strategy combines defined-risk options trades with stock ownership, allowing investors to collect premiums, acquire shares at a discount, and generate ongoing yield. This strategy is popular among long-term investors for its consistent income generation.

The wheel strategy involves three steps: selling a cash-secured put, selling a covered call, and closing the loop with a winning trade. This strategy pays investors at every stage, is controlled and systematic, and works best on high-quality companies. Investors can use tools on the Barchart platform to run the wheel strategy effectively and efficiently.

The wheel strategy is grounded in simple rules that appeal to long-term investors seeking steady income and disciplined entries. By sticking to great companies, entering at optimal prices, and generating consistent income, investors can use the wheel strategy to get paid to invest. This strategy is favored by professionals and long-term investors alike for its effectiveness and reliability.

Read more at Barchart: Is the Wheel the Best Options Strategy for Income? Here’s How to Trade Options Like Warren Buffett