I believe the only risk in this strategy is that if the markets remain depressed for extended period of time, our patience may run out and we may have to exit at a loss. I believe if we buy Put of say Dec 2021 or March 2021, we will have the comfort of protection after a definite time period and we can safely roll over monthly Puts ( and collect the monthly premium) till such time. Premium paid on buying protection will mean that our overall profit will be lower but it can be said with reasonable certainty that overall we will be making good net profit.
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Please read March 2021 as March 2022
When you sell ITM Puts you will not sell them a premium always. When it goes say 3% ITM you will have to sell the Put at a discount. Which means every month you will lose about 150 pts ( when NIFTY is at 26000) as you keep rolling over. If Nifty Returns to the original strike after say 12 months you would have lost 1800 pts approx. So you have to sell further ITM Puts to cover up this 1800 pts. Which means NIFTY should go above by 1800 pts from your original strike if NIFTY takes 12 months to come back.
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Selling ITM put is same as buying future and selling otm call of the same strike. Your calculation don’t add up. I am doing this cash secured put and covered calls for 6 years now and my returns are more than decent.
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I saw in another post you mentioned getting 30-40% returns annually with this CSP/CC on Nifty. But how? 
- Selling 1 lot Nifty 26000 PE (54 delta) for Feb '26 expiry gives 27560 INR as premium.
- Cash required: 19L (NiftyBees @ 291 * 100 * 65)
- ROC if everything goes to plan in 37 days = 1.45% or annualized to 14.3%.
Even that is too ideal, since we’re selling 54 delta put, even a minor correction would mean our CC would be way OTM for a long time! 
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Once my strike goes ITM, I close that position, buy futures and sell higher level call. So I take full return from nifty which comes around 12 percent per annum. Plus return from debt funds. Plus I sell very deep OTM with 1 or 2 days to expiry. Yes. i know I am taking little risk here.
My equity long right now is 51 percent. As per my valuation nifty should be at 26300 at the end of this FY. So I have sold 26500ce against total equity exposure. At the same time i have sold 25000 puts too which if triggered can take my equity long to 90 percent. Depending on which side strikes are on red, I will sell otms on the other side. If 25000 puts are in red for the time being, I will be selling weekly 26500ce in huge quantity. Both sides cant go to red na. i adjust in such a way that Worst case of gap up, i lose not more than 5 percent of capital.
Well a lot of adjustments which I find it difficult to put it in words here.
Also my return has now dropped to 31percent ixrr over a period of 6 years. It was very close to 40 in first 3 years. Reason for the drop has been last 2 years. Ended last FY with 21 percent. This Fy so far is 18.5 percent.
All returns are at account value level.
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Awesome, thanks! 
So stocks/ETFs + futures + options + adjustments (I’m very bad at this) = very professional portfolio! 
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How much capital you hold for single lot wheel strategy ?
Contract value.
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It will test your patience, discipline and your trust in the market/stock. Not for those who live on trading money.
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