Figuring out my 2026 Investing Plan

2025 was a bull market. Everything went up. My wheel trading generated solid returns, but I have no idea how much was skill versus just riding the wave. I need to come up with a strategy for 2026. My initial thinking is to build up and hang onto a significant amount of dry powder for any potential bust. The rest will be wheel stocks. I’m also thinking of doing more longer term trades: regular equities to hold for a while (+1 year) as well as some LEAP calls.

Here’s what I’m changing:

Reduce tech concentration. Right now I’m too heavy in tech. If there’s an AI correction or broader tech selloff, everything moves down together. I’m adding healthcare (ABBV?) and consumer exposure to the wheel (CVNA?).

Build dry powder. I’m keeping 30-35% in cash for when we get a real dislocation. Tariffs, midterms, geopolitical stuff - as the last year showed us, there will be significant volatility. I want capital available to deploy when IV spikes and everyone’s panicking.

Separate long-term from wheel positions. My GOOG position is up over 100%. I’m not risking that getting called away for small premium. It stays in the long-term bucket. Same with a few smaller conviction bets I want to hold for 2+ years. Specifically energy-related: ENPH for solar and BWXT for nuclear.

Allocation target:

• 50% wheel trading (3-4 active positions): AAPL, ABBV, CVNA, ORCL
• 30% dry powder (money market until deployment)
• 20% long-term holds (if I sell calls on these, it’s very conservative ones)

The wheel strategy stays the same: sell puts on stocks I want to own, get assigned, sell calls. Target 1-2% monthly premium on deployed capital. Close winners at 50% profit or 21 DTE. Position limits at 15% max per ticker.

I’m documenting this mostly for myself. To see if the system actually works when things get rough, or if 2025 was just lucky timing.

Not financial advice. Just documenting what I’m doing with my own money.