u/Prestigious_Emu729

Hello, All!

I just wanted to keep you up to date on my SOFI wheel. My $17.50 CSP exercised over the weekend, so I took posession of 100 shares at $17.50 today. I took a few actions for my next step:

1. Sold a 6/18, $17.50 CC, collecting $37.34 in premium. The delta for that CC is 0.27, and the AROI if it goes to expiration will be 28.36%

2. Set a BTC Limit order on the CC at $0.05.

3. Used some of the premium to purchase 2 more shares at $15.50 each.

This leaves me with the open CC, and with 104 shares. The cost basis for the shares is $16.52, so if the CC does get assigned, I will make a nice profit, as well as having 4 "free" shares to show for my effort. My primary plan for the CC is to take assignment, but if the price is up, and I can roll for a nice profit, some premium leading to more free shares, and a raising of my potential capital gains I will do so. I'm running this one a bit more "traditionally" than my F wheel--while I'm accumulating the free shares, no strangles on this one--I'll stick with 1 contract open at a time, and collect the premium.

I've been thinking about this one, and I'm going to see it through, but part of me thinks that in the future I'm going to stay away from the high-fliers, and stick to solid, divided-paying issues. The profit may not be as high, but I think that may suit my personality better. Of course, I say that still being early in the process with SOFI, so that introspection may change. Just wanted to share where my thoughts are now.

As always, thoughts, suggestions, corrections, etc., always appreciated. I'll add my spreadsheet tracker to this one so you can take a gander at it if you'd like.

Thanks!

Tom

https://preview.redd.it/50mn90zmoy1h1.png?width=1802&format=png&auto=webp&s=607885614647a26095ced8cf6bcefd426053c2bc

https://preview.redd.it/8izcg9yeaz0h1.png?width=1807&format=png&auto=webp&s=0b099fa583fc891395e4d1caaf3b5f57975963e3

I haven't posted on this for a while, so I figured it is about time. At the beginning of April I was worried that it would keep dropping, use up all of my capital, and I'd be holding the bag on a bunch of shares (totally willing to do that, by the way). Since then TQQ began a rocket-ship ride, and I've sold a bunch of shares, with nary a pullback, and no replenishment. My SV/TV hit 35%, and I widened the sell side of the grid to 7.5%, and shares kept selling. Then the SV/TV hit 20%, and I widened the sell side to 10%, and continued to sell.

As of now I've harvested $113.78 off of a $1000 investment in 60 days, which works out to a very nice AROI (I have it at $691%). I still hold 3 shares, and the rest of the account is in cash. Now the worry is the opposite--will it keep going up until I sell that last share? If it does, I'm happy to take the profit, and am thinking through ways to restart the grid. If not and it pulls back a bit, I'm happy to buy some discounted shares. Either way, I'm happy. By the way, the cost basis on the shares that I now hold (purchases at $46.16), is now down to $24.75. And I am still happy with the process, and pretty excited to see where it goes from here!

I know that my profits are not as high as they would be if I had just bought-and-held, but as I've been selling, I've also been taking risk off of the table--that seems to be a fair trade-off to me. As I've experience a flat market, a short downturn, and a violent upturn, I'm calling this part of the experiment a success. The next step is to see how it holds up should I sell that last share, and test out my strategy for continuing the grid (should I decide to do so).

As always, comments and questions are always appreciated.

Thanks!

Tom

https://preview.redd.it/xjq40bek0y0h1.png?width=1649&format=png&auto=webp&s=37f80f37dd482ad4673c5b3f0e749c1231731064

Hello, All,

So, lots of action on my F wheel--it is actually in danger of becoming "un-boring"

First thing is that my Dividend Capture strategy (which I thought was pretty smart) came to almost naught. The stock price jumped above the CSP which I had written (even though the CSP was written at 4 DTE, and was ITM when written). The price rose enough that I decided not to buy shares. The good thing was that the CSP expired after 4 days, with a profit equal to 192% AROI, and I used the premium to buy 3 more shares, so my cost basis for my held shares decreased nicely. That left me with 111 shares on the ex-div date, so I will collect a nice dividend to reinvest on 6/1.

That left me with a CSP to manage. What a difference a day makes! When the market closed yesterday, I was asking myself if I wanted to roll my 5/15 $12.00 CSP, for a profit if possible, or take assignment and increase my shares, as well as decreasing my cost basis. Then today F jumps over $1.50 per share, and that decision is made for me. The BTC on the CSP exercised. I sold a new CSP for 6/12, with a strike of $13.00 for $31.34 (30 Delta). If this CSP were to expire, the AROI on it would be 29.33%. After setting my BTC, I used the remaining premium to purchase another share for $13.66. Bringing my share count up to 112 shares.

Now I have Friday's $12.50 CC to focus on. Again, what a difference. Yesterday I was sitting and waiting for the BTC to exercise, now I'm $1.00 ITM on it! My goal is to try to roll it out if possible, even if I need to roll it at the same strike, and collect some more premium before being possibly assigned. I'll cross that bridge tomorrow or Friday.

That leaves me in a somewhat strange position of having an open CSP with a strike above the open CC. I didn't think about that, or I may have sold the CSP at a higher strike for less premium. I don't know that having the CSP strike below the CC strike is necessarily a fatal flaw, but it does "feel" strange.

Anyway, that is where I am now, 112 shares with the cost basis lowered to $11.87 per share, and the open CSP and CC, with a dividend coming, and looking at how to manage best the open options.

As always, I'll look forward to your thoughts, comments and suggestions.

Thanks!

Tom

https://preview.redd.it/l71h0io6d6zg1.png?width=1656&format=png&auto=webp&s=3eee529da8232a0054c076ba58bd8933d85d3e47

Hello, All,

Thank you for your responses to my previous inquiry about this. I decided to take "The Plunge" on the Dividend Capture. I sold a 5/8, $12.00 CSP for $25.24. The premium for this, plus the premiums that I had saved, allowed me to purchase 3 more shares, bringing my share count up to 111 shares, and lowering my per-share cost basis to $12.06. Of course, F immediately dropped about $0.25 per share, so I have some egg on my face, but I still think the idea is sound. If/when this one assigns, I will take posession on Monday, and hold until Tuesday, locking in the dividend. Then I will begin writing CC's on that 100 shares at $12.00, using the premium to purchase new shares, until these 100 shares sell, or something happens to convince me to change my plan with these. The CC's for the first 100-share purchase will remain the same, and I will continue to resist assignment on them in order to continue building my postition. I'll check in on how this one goes over the next week or so...

Thanks!

Tom

Hello, All,

Since F goes Ex-Dividend on 5/11, I'm considering a dividend capture move--on Monday write a 5/8 ITM 12 CSP. Because the intention is to have that assigned, I will use the premium to purchase 2 more shares. If it doesn't assign, I'll cross that bridge then, but if it does, I will let it go through until 5/12, to lock in the dividend on 100 shares. Then I will write weekly 12 CCs until it exercises and sells, using premium to purchase shares. The strategy seems to be sound, but I wanted to get your thoughts/comments, as I've never done this sort of capture strategy before.

Thanks,

Tom

https://preview.redd.it/d15ia5rl5lyg1.png?width=1672&format=png&auto=webp&s=362cebcf8c9fc007425ca6bf90042fc943758974

Hello, All,

As F continues to drop, my F wheel continues to provide activity. My 5/29, $13.0 CC closed today with a debit of $5.01. That leaves me with it being open for 3 days, and a total premium of $10.33, which works out to an AROI of 102.26% for that contract. I went ahead and opened a new CC with a 6/5 expiration date, strike of $12.50, for a total premium of $15.34. That lowers my share cost basis to $12.30 per share. The $12.50 strike is awefully close to that, so I won't be able to go lower on my strikes...but the delta on that CC is 0.30, and I wouldn't have been able to get any meaningful premium if I had tried to go higher on the strike. My plan is to defend this CC pretty rigorously, but of course if it DOES exercise, it will be at a profit.

I almost did not sell a new CC--the DTE is a bit further out, and the strike a bit closer to my cost basis, than I would like. I ended up selling the option, but will be monitoring it carefully.

I also now have enough realized premium that I will buy another share on Monday (this occurred late in the day today, so I was not able to do so today). That will add 1 share to my 108-share position, and further lower my cost basis.

Looking at my current CSP, it is now in the money, with the strike being at $12.00. Depending on the share price as we approach expiration, I may defend it, or let it assign. Either way, this experiment is getting more interesting, and is still profitable!

I'll look forward to your thoughts and comments.

Thanks!

Tom

https://preview.redd.it/712mmw97nyxg1.png?width=1690&format=png&auto=webp&s=600050d2edc21f498415cc658948ce3d8b4d18f4

Hello, All!

So my CC BTC today at $6.00, That gave me a profit of $10.69 over 11 days for that contract, for a AROI of 27.30%. I'm happy with that!

I went ahead and opened a new CC with a $13.50 strike, which works out to a delta of 0.19, and 31 DTE for the new contract. I received $13.34 for that contract, which if it goes to expiration works out to AROI of 12.78% if it goes to expiration. I also set up a BTC order at $0.04.

I reviewed my premiums vs. all of my additionals share purchases, and don't quite have enough to buy an additional share right now, so I'll do that if/when my CSP expires. I'm still pretty happy with how this campaign is going. My per-share cost basis is down to 12.39 (down from 13.50 from my initial purchase). I'm still not at break-even territory, but I'm moving in that direction.

Forgot to say this originally, so I'll add it here--because I would love to keep the shares if possible, my first plan is to defend this contract if necessary, although if it DOES end up executing, it will be at a nice profit, so I won't be too upset. 😉

As always, comments, suggestions, jeers, etc., always welcome. I'm posting this to learn 😉

Thanks!

Tom