Skip to main content

Understanding income systems

What Cash Reserve, Wheel Paycheck, Futures Paycheck, and Sideways Strangle (coming soon) each do.

Written by Austin Bouley

Income systems are automated strategies that run inside your own brokerage account. You choose which to deploy, how much capital each may use, and how each is configured. From there, the system places and manages trades on its own schedule.

Your money never leaves your brokerage account. We place trades on your behalf; we don't take custody.

Cash Reserve

Puts idle cash to work rather than leaving it earning nothing. It moves uninvested cash into SGOV, a short-term US Treasury ETF, and rebalances as your available capital changes.

Capital needed by your other active systems is always set aside first, so Cash Reserve only uses what's genuinely spare. It's the lowest-risk system and the usual starting point.

Minimum: $1,000. Requires: any connected brokerage. Runs: every 30 minutes during market hours.

Wheel Paycheck

Runs the options wheel on your approved stocks and ETFs. It sells cash-secured puts to collect premium; if a put is assigned and you take delivery of shares, it sells covered calls against them until they're called away, then starts again.

By default, contracts run to take-profit or expiration. If you enable Rolling Rules, in-the-money cash-secured puts can roll on weekdays near the close. You can also add your own symbols beyond the curated list, and run two Wheel systems on one account with non-overlapping symbols.

Minimum: $5,000. Requires: options approval at your brokerage. Runs: weekdays at 10:00 AM and 1:00 PM Eastern (7 DTE cash-secured puts: Monday only; covered calls any weekday). See When Wheel Paycheck trades.

Futures Paycheck

Sells short puts on /ES, the S&P 500 futures contract, guided by a trend indicator so it's positioned according to market direction rather than selling blindly. Take profit and stop loss are configurable.

This is the most advanced of the live systems and requires the most capital. If buying power is tight on an entry, contract size can step down automatically rather than failing the whole attempt.

Minimum: $8,000. Requires: TastyTrade with futures and options approval. Runs: twice on scheduled weekday entry days (10:00 AM and 1:00 PM Eastern).

Sideways Strangle (coming soon)

A short-strangle income system for range-bound markets. It appears in the catalog as Coming Soon and is not deployable yet. Planned minimum is $10,000; IRAs are not supported. See Sideways Strangle System (coming soon).

Running more than one

You can run several systems at once, across one or several brokerage accounts. Each deployment runs on a single account.

Most systems can only be deployed once per account. Wheel Paycheck can run twice on the same account when their symbol lists don't overlap.

A common approach is Cash Reserve on idle cash alongside an income system on allocated capital.

Trading permissions

Connecting your brokerage isn't the same as being approved to trade options in it. That approval comes from your brokerage. Check yours before deploying Wheel Paycheck or Futures Paycheck.

A note on risk

These are real strategies trading real money in your account. Options and futures carry risk, including loss. Past performance doesn't predict future results. Only allocate capital you can afford to have at risk, and take the time to understand what each system does before deploying it.

Did this answer your question?