>>60536755
The wheel uses cash secured puts to purchase the asset. Higher asset prices means contracts are more expensive to take assignment on meaning you either need A) more money to keep wheeling or B) need to sell less contracts to keep wheeling. A $40 stock effectively requires twice as much capital as a $20 stock, and while option prices do increase as the underlying increases, they don't increase so much as to keep pace. For example, a 0.20 delta put on MSFT expiring next friday, the last one sold for like $1.50 in premium. SOXL has a put at about 0.20 delta, same expiration, for 0.40. That means that the MSFT is only worth 3.5x the SOXL put, even though SOXL is trading at like 21 and MSFT is trading at 477, a difference of over 22x share price. So a MSFT CSP costs over 22x to take assignment compared to a SOXL contract, and only pays out 3.5x more.
>TLDR The wheel prefers low cost high vol stocks.
>>60536732
>I can't own soxl due to EU fuckery.
I'm sorry, being cucked by the EU sucks.