u/rockybud

Been lurking on this sub for years and have benefitted greatly from seeing other's gains/losses and their detailed analysis over their strategies. Figured I would post some of my own learnings.

In about 10 weeks of active trading, I have grown my portfolio from 30k to 37k, roughly a 24% gain. Most of this amount was made up of premiums collected, and the rest was gains made by getting assigned on CC that were above my cost basis. I have been casually selling CC on stocks that I own for years, but not aggressively and with no real goal in mind. I decided this year to allocate a chunk of money outside of my other long term investments solely to generate premium and cashflow.

My strategy:

1. I solely focus on weeklies. I sell contracts on Monday/Tuesday that expire on friday. I like the concept of capital being deployed for 4-5 days and being able to change up strategies every week if needed.
2. The goal of this account is to simply collect premium. Dont necessarily want to be holding any shares for longer than a month or two. I dont want to roll, because that means giving back some of the premium collected when opening the trade. Basically i kind of just prefer getting assigned at whatever strike i sold at, because that is guaranteed gains locked in.
3. Only sell CC above my cost basis. Usually $2-5 above my cost basis. If assigned, i get a few hundred bucks, plus the premium for the week and close the position out.
4. Only sell CSP lower than what my last CC got assigned at. For example if RDDT goes on a run and my $155 CC get assigned, the next week ill sell a CSP at $155 or less. (although I have broken this rule once or twice during a huge run-up)
5. I stick with sectors I know well and companies that I have been following for years. I have a lot of personal interest in space, hence why most of the tickers i trade are in that sector (RKLB, ASTS, LUNR, FLY). I am long RDDT and see lots of upside so thats why its my largest position. All companies i wouldnt mind owning for the next year or two.
6. I tend to deploy 75-90% of my available capital in any given week. I gave myself 30k to try this strategy out, so im going to utilize as much of that as possible to maximize returns. This is not my long term account. After the original 30k, I have not funded this account since starting.

Negative Aspects of this strategy:

- This is probably going to piss some people off but i dont really look at the greeks. I know what they mean, and i know how to use them. But they're not very relevant to me at this point. I simply try to maximize premiums while only selling above my CB. Im sure I can probably benefit from understanding the greeks better and learning to maximize trades with them.

- Ive gotten lucky af in the past 3 months since the market has been perfect for this stategy. Premiums are juiciest when the market is swinging wildly, which has happened almost every week. Heavy red days going into the weekend and then new ATH on monday. The way that politicians and current geopolitical events have affected the market has been heavily in my favor for the past 10 weeks. I realize this kind of return is not possible in a bear market or significant crash.

Any feedback or advice would be appreciated. Or tips on how to make this strategy sustainable longterm and in all types of markets.