u/Royal-Respond2374

Hello,

Recently I have been contemplating a mix and match between strategies.

I am thinking about using the proceeds of the wheel strategy to sell Bull Put vertical spreads, which is essentially buying a long put and taking away the assignment element while caping the loss. (The difference between the put that you sell and the one that you buy).

Does anyone have experience managing these types of portfolios or mixed wheel strategy with vertical spreads? If yes what are some of the things that you would suggest to someone?

I think of the wheel almost as safe passive income and think about spreads as a more agressive investment since you can open SOO many at a time. AS long as you are comfortable with the risks and choose the right stocks you should go for it.

u/ScottishTrader I have seen in threads and previous posts that at times you have also done spreads. Mind sharing your experience? I think it would be super useful for people that already have a very well established wheel strategy and are looking to take the next step and maximize on risk/collateral/profit.

https://preview.redd.it/g1ipf9s3ffah1.png?width=2834&format=png&auto=webp&s=768b7556683f267ab55db2c09f590a53a5fab38d

Hello!

Quick update on my positions, I got two options of Kroger assigned at $58 after its most recent 8% drawdown been collecting CC's on it with an even higher strike than what I got assigned. Holding, now trading at $55 - $56. Managed to lower my average price to $56.5

200 shares at 56.5 avg price now trading at 56 -57.

What I am worried about is the TMUS option. Good stock now trading at a discount compared to all time highs, good expansion and cost reduction plan, amazing cash flow and a good competitive advantage. However, this assignment might become my most expensive assignment yet. $16.5K... This will lock a good portion of my capital.

I am concerned about the potential disruption effect that Space X might have on the company after pushing the idea of entering the mobile data -signal industry.

Definately changed my overview on the company, will love to own it on my equities but not for wheeling.

Also have some CSP's on Charles Schwab and Walmart. SCHW is doing great, WMT is getting crushed, but again not really worried about those as I believe it has taken enough damage since its all time highs and also offers a great dividend and liquidity for covered calls.

Besides that you can see I am also doing bull put spreads. That is the second phase of my strategy. It allows me to capture premium on large cap without incurring so much capital.

Would love to hear everyone's thoughts.

https://preview.redd.it/q81hpc9qq38h1.png?width=1772&format=png&auto=webp&s=dfc99c2e6f1289d2207aa9b4f4853340841ece61

Today is the day..

After many contracts and following the stock for a long time I am getting assigned on KR. It had earnings today and although the actual numbers and metrics weren't bad, the street doesn't forgive. Great cash flow, solid balance sheet anr revenue growth. Price of oil, inflation and wages increase are eating bottom line profit.

Dropped 8.5% today which is something that is totally unheard of.. In any case I am happy that I get to stress test my portfolio and investment thesis. Monday morning will wait until opening see if there is a little bounce and sell those Covered Calls for those two contracts. I am only 1% ITM so those CC at $59 or even $60 will hopefully be super juicy.

In addition to that I got to buy a cash moat and a solid busioness at an absolute discount. It does however mean that my capital or collateral will be "trapped" in there for a while but nothing that we can't manage.

The rest of my options are looking good, I might even close some of them even earlier than what I was thinking. Might have to apply the same process with WMT if assigned.

I hope stock rises to maybe $59 or $60 so I can make additional capital gain by getting assigned at $58.

What are your thoughts? Amy suggestions?

I barely missed on an assignment in WMT at $119.

With everything dropping in AI premiums on safe heavens and cash moats are getting more expensive, resulting in better deals.

Currently only wheeling with businesses I would like to own at a cheaper price.

First time including Citi. Not bad for a 10% strike distance from current price. 1.35 prem $120 strike.

My strategy is sound and "safe" when you compare my wheel to someone that includes AI or high volatility stocks. Very cash intensive though as you need money to keep in colalteral.

Averaging $1k - $1.5k per month using 75k collateral.

Don't mind on getting assigned but being cautious enough when managing the distance strike to current. (>7% at least)

Usually have 5-8 open contracts mostly on" WMT, CVS, SCHW, TMUS, KR, C. All cash paying dividends, adn top of the industry companies.

Most of the premiums go to underperforming companies in my equity portfolio. Basically a self sustaining investing machine with the least amount of money coming from the outside.

Eventually with the proceeds will take a little bit more risk with bull put vertical spreads, that is on stand by.

If anyone has a similar strategy or has any insight on high quality stocks worth looking into let me know.

Open to suggestions.

Adding all my entries

https://preview.redd.it/9vg5wj9vht5h1.png?width=2888&format=png&auto=webp&s=4f6d6d89e71b3c293a48ac3cc6851f5b4425e62d

I choose as my main Wheeling slots CVS, WMT, SCHW and KR.

Been doing great. Except for this last wheel for WMT is in the money. Waiting to see if it gets assigned. If that's the case will start selling CC's.

Regardless of the assignment I am wheeling with high quality stocks that I wouldn't mind owning + strong dividends.

Good spreads when going for the 0.15 Delta

Currently averaging $1,000/ month in profit

https://preview.redd.it/e0nr7cm1kv3h1.png?width=2816&format=png&auto=webp&s=b523e845178031456c504f461257e25d0f0ab5fb