I’ve been doing covered calls for 2 years now, and I keep falling into the same trap of how premiums. I chase stocks with high premiums but they end up falling 50% within a month or so after. There have been months where I make 20% but then when the bad month comes my portfolio falls 50%-60%. I’ve been selling calls Iren Clsk Tsla Crwv Apld sofi I get that these are all ai stocks mostly but if any of you have any recommendations would appreciate g

I am currently trying to do wheel with good companies. I don't care about IV, I just want In case I get assigned I have a good name that doesn't go down that much.

Currently I am wheeling:

• SOFI (covered call at 18. probably going to be assigned)
• CMG (CSP at 33)
• GRAB (CSP at 3.5)

What names you have around these values (under 40 bucks a share, I don't want to use leverage)

Trades I took today as an option seller (08/17):

Closed Positions

• KORU → $15 Put (opened on 08/12), premium 0.70 → closed at 0.11. Net premium profit = 0.59 (~84% of premium captured, ~3.9% of capital).
• SEI → $60 Put (opened on 07/21), premium 4.60 → closed at 0.75. Net premium profit = 3.85 (~84% of premium captured, ~6.4% of capital).
• PENG → $60 Put (opened on 07/08), premium 6.50 → closed at 1.10. Net premium profit = 5.40 (~83% of premium captured, ~9% of capital).

New Positions

• CRDO → $240 Put expiry 09/04 (3 weeks DTE), premium 12.00 → 1200/24000 = ~5%. CRDO builds high-speed connectivity chips used inside AI datacenters. Earnings due on 1st September hence premiums are higher. They have been giving excellent earnings QoQ.
• PENG → $60 Put expiry 09/18 (5 weeks DTE), premium 4.10 → 410/6000 = ~6.8%. I reopened PENG, continuing my bullish stance. PENG helps enterprises setup data centers and AI compute, which I see as a growing sector as more companies inheret the use of AI.

CRDO was identified as a High Growth High Premium stock using the ThetaHedge app. The app scans the market for companies with improving growth and profitability that are also offering high option-selling premiums in real time. You can try it for free at https://app.thetahedge.io/

Conditions → High Growth Wheel Stocks

I keep sharing my trades in my account and the Excel file to my full list of positions is linked in my profile description in case anyone wants to see the whole portfolio. Happy to hear thoughts on my positions. What are you guys wheeling or watching right now?

PS: Not financial advice. Do your own research.

I’ve been wheeling for 5 months with a small portion of my IRA as an experiment. Broadly speaking, I’ve generated roughly 25% return in the 5 months (NOT annualized) on that small portion, which I would consider success as it has exceeded SPY and QQQ gains over the window.

I acknowledge the last 5 months involved a huge bull move where one could just sell CSPs on anything and make money. I’m happy I was able to navigate the small downturn from the war and maintain the return. Got assigned a couple times but chose strikes that allowed me to be within reach of letting shares go.

With my return over 5 months in consideration, when would be a good time to increase my allocation for wheeling? I hope to someday perform the wheel on a larger, non-IRA account as a second income source. Thanks yall!

Edit for additional context: initial allocation for wheeling was about 25k, and amount has grown to roughly 31k

I had been placing trades so that my max at risk equaled my cash balance. If I have $100k in cash I view it as I have $100k to "deploy". So selling 1 put on with a strike of $1,000 would be full deployment.

Someone here mentioned that they deploy 110% and never more. That makes sense to me, if the world falls apart you only have to exit a manageable portion of your trades.

I'm now doing this and realized that if I average 20% ROI on 110% deployed my effective ROI is 32%! Mind blown.

Hello everyone! I was motivated by a few others to post my results as a new to options trader. Right now I am limited to $1500 in total capital. I made a mistake in my first trade with LYFT and lost a little right off the bat. My goal is to make ~$100 a month and have done that well. I took u/ScottishTrader advice and have a GTC offer for 50% profit on my one open trade. I am trying to balance wanting to be an active trader with having the patience to execute my plan.

Feel free to give me advice or ask questions!

https://preview.redd.it/9aax5ea8kkjh1.png?width=1441&format=png&auto=webp&s=0624d4b145e6a257708710a3ad893ce109343bfd

This week everything nearly dropped to 0 so I decided to roll a day early. I had to move almost everything higher so leaving a little room in case I need to adjust next week if things tank. Last Week's post: https://www.reddit.com/r/Optionswheel/comments/1vi3kpb/1_weekly_returns_from_options_week_23/

First, the strategy:
- Use a screener to give me a list of top 20 low delta options for next week
- I either
- a. Roll my current options - I do this if I can still get 1% for rolling or if the option is ATM/ITM and I have to roll. I always roll for credit.
- b. Close a current option and pick something else from the list that I like
- I try to do this every Friday. However, if I'm busy on Fridays, I'll sometimes do this on Thursdays.

Results:

This morning's screener output:

Today's Trades:

Historical Performance:
(Today is in 8/14 because I rolled early)

Trades I took today as an option seller (08/13):

Closed Positions

• INOD → $60 Put (opened on 08/07), premium 1.85 → closed at 0.30. Net premium profit = 1.55 (~84% of premium captured, ~2.6% of capital).

New Positions

• INOD → $60 Put expiry 08/28 (3 weeks DTE), premium 2.30 → 230/6000 = ~3.8%. I continue to be bullish in INOD. They reported excellent earnings and implementation of AI is driving revenue growth. INOD has good support at $55-$60 range.
• OUST → $40 Put expiry 09/04 (4 weeks DTE), premium 2.000 → 200/4000 = ~5%. OUST makes LiDAR sensors used for automation. Their contracts with NVIDIA makes it's sentiment positive.

Thoughts on the Market

https://preview.redd.it/tzigkxic18jh1.png?width=1080&format=png&auto=webp&s=a26d6ac87e063608421eccb35d4910a0c3cf941d

NASDAQ broke the resistance of 26,700 today. If it holds above 26,700 tomorrow, it will be a positive sentiment signal.

INOD was identified as a High Growth High Premium stock using the ThetaHedge app. The app scans the market for companies with improving growth and profitability that are also offering high option-selling premiums in real time. You can try it for free at https://app.thetahedge.io/

Conditions → High Growth Wheel Stocks

I keep sharing my trades in my account and the Excel file to my full list of positions is linked in my profile description in case anyone wants to see the whole portfolio. Happy to hear thoughts on my positions. What are you guys wheeling or watching right now?

PS: Not financial advice. Do your own research.

I made the mistake of not investing properly and now I'm playing catch-up. Wheeling attracted me because of the possibility of beating the SP500 which would enable me to catch up more. But I also recognize that this strategy inherently caps the upside. Moreover, my Capital is not always fully utilized due to limited opportunities.

How does wheeling fit into your strategy? Should I view this as a secondary activity that merely generates supplemental income?

Trades I took today as an option seller (08/12):

Closed Positions

• KORU → $15 Put (opened on 08/05), premium 1.10 → closed at 0.05. Net premium profit = 1.05 (~95% of premium captured, ~7% of capital).

New Positions

• KORU → $15 Put expiry 08/28 (3 weeks DTE), premium 0.70 → 70/1500 = ~4.7%. KORU is a leveraged asset and this trade occupies only a small portion of my trading capital.
• ICHR → $60 Put expiry 09/18 (6 weeks DTE), premium 3.40 → 340/6000 = ~5.7%. ICHR makes fluid delivery systems used in semiconductor manufacturing. The stock reported good earnings and has a good support at $62-$63 region.
• DOCN → $165 Call expiry 09/18 (6 weeks DTE), premium 4.20 → 420/16500 = ~2.5%. I was assigned DOCN at $165. I closed this same call position yesterday when DOCN sold off and today I reopened the same position when the stock recovered. This resulted in almost a $190 profit per contract.

I keep sharing my trades in my account and the Excel file to my full list of positions is linked in my profile description in case anyone wants to see the whole portfolio. Happy to hear thoughts on my positions. What are you guys wheeling or watching right now?

PS: Not financial advice. Do your own research.

I'm only a month into my wheeling journey, but I only have a handful of stocks I'm watching. I'm struggling to discover new stocks, ideally in the $25 to $50 range, to start watching and look for opportunities.

Are there any good free tools available to discover new tickers? Or could you suggest a couple. Ideally I'm looking to have about 10-15 tickers on my watch list that I can go through.

TL/DR: I sold a CSP on $AMPG to try to slowly get ahead on a long-dated put I sold on it that's now gone up in price (now I only sell for 30-60 days out; it just makes more sense & is less stressful). I'm wondering what you'd do if you were me.

I violated the "only sell a put on something you'd be willing to hold, at a price you'd be willing to hold it" rule, because looking at how far it's dropped after earnings, I don't know what I was thinking. These days I'm not really into stocks that operate at a loss, or even ones that don't pay a dividend at that. I also didn't think about how critical earnings is to options; all of this has been a learning experience.

I just got home from work to see that the stock has absolutely plummeted after earnings. As it expires tomorrow, I feel like it's pretty likely that it gets assigned. I was able to swing it just now for ~$70 as I thought that might help mitigate whatever losses I may incur; that's honestly helping me feel better. I guess that money could go toward closing this position tomorrow.

So what would you do? Would you close it? Roll it? Let it get assigned & wheel it? I'll have 30 minutes before I work tomorrow once the market open to make a move & seal the deal.

Here’s the checklist I usually run through before putting on an options trade:

1. Pick the underlying. I only sell puts on stocks I’d be comfortable owning for the long term. Broad ETFs like QQQ and SPY are also good candidates.
2. Pick your timing. If a stock or ETF looks overheated, I’m happy to wait. I’m still bullish on QQQ over the long run, but I’d rather wait for a pullback before selling puts. Bollinger Bands can be useful for timing the entry.
3. Choose the expiration and strike. I usually look at 30–45 DTE and keep the delta around 0.20 or lower. Then I work out the expected return after commissions and fees. The yield has to make sense.
4. Run the Wheel. If I get assigned, I’m perfectly happy to own the shares and start selling covered calls.

I just sold a put on COIN. The annualized return on the trade is around 16%, and I’m comfortable owning COIN if the stock drops below my strike.

For me, the key is pretty simple: only sell puts on stocks you actually want to own.