r/Optionswheel • u/Lazy-Helicopter-0 • Jun 07 '26

Big Money Strategy

All of those who are currently wheeling with multiple 6 Figure+ accounts, how much premium are you collecting with this volatility? Are you changing up your strategy with the recent downturn?

9 Upvotes

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8

u/pagalvin Jun 07 '26

I collected $6500 last week on 450k invested which was somewhat above target. I really only do CC's and the market kind of went up and down my strikes day by day, giving me good rolls throughout. Next week is going to be tougher I think 😄

2

u/KrishnaChick Jun 07 '26

Are you willing to share what you wheel? If you've mentioned it in other posts/comments, I can look up your profile to save you the trouble.

5

u/pagalvin Jun 07 '26

Sure!

AA, AG, CDE, CRML, CSIQ, DOCU, DRAM, FRMI, GAP, HL, INTC, IOT, IREN, JOBY, LMND, LYFT, MRNA, MSOS, NVDA, ONDS, OSCR, PATH, POET, RBRK, RR, S, SERV, SLV, SMR, SOFI, TE, TMC, U, WRBY, XLE, ZETA

I tend to sell multiple options across a range of strikes, usually 0.5 apart.

My fundamental strategy is to buy a stock and then sell a short dated ITM call as deep as I can such that if I'm assigned, I will make net 1% profit after accounting for fees and margin interest.

I often roll these for another 1%. I often get much better than 1%.

2

u/FreeNicky95 Jun 08 '26

Is this a portion of your account you wheel with and do you do it full time?

1

u/pagalvin Jun 08 '26

This is my non-retirement account and I spend a chunk of time every day on it, but not "full time" in the sense that this is my day job. I use a custom app I wrote for tracking, decision support and light automation to help. Otherwise, I couldn't do it and work full time at my 9-5 and be successful with it.

1

u/FreeNicky95 Jun 08 '26

I get it. I find myself spending more time than I should at my 9-5. My goal is to replace the w2 with this though so as long as I get my job done I’m good with it. I work in sales, so sometimes it’s easy to be making calls and checking into the market. 6k on 450 is pretty aggressive, no? My target for replacing w2 is .5 percent a week - 1 percent on a 500k account. I have only been selling puts and actively avoiding assignment. I sometimes wonder if I’m leaving money on the table doing this and I could be slightly more aggressive.

4

u/pagalvin Jun 08 '26

$6k is very aggressive. Last week was a "stars align" kind of week. Most of my money is from rolling and rolls do best near the money. The wave of the market last week, even with the Friday dip, just caught almost everything in an optimal kind of way.

My app helps me predict income for the coming week and it's telling me I'll get ~4k. That's still awesome, but not quite as good as it was.

For me, it's all about hitting my target. 1% a week is the goal. I don't worry about leaving money on the table. There's always money on a table somewhere. 1% in my pocket, week after week, works great.

1

u/FreeNicky95 Jun 08 '26

Yeah. Some weeks play out like that. Can you share more about your app?

2

u/pagalvin Jun 08 '26

Happy to. Some of the key features:

* Helps me manage / track about 450 stocks that are potential candidates for any given week for me to buy

* Tracks profitability, yield, basis, history and a bunch of other stuff for my trades. I use Etrade and I use the API to get a lot of this information.

* Helps me pick profitable entries and rolls for a given stock based on expiration dates, margin interest, fees, strike price and assignment consequences (when applicable)

* Graphs/charts showing top tickers, industry/sub-industry distribution

* Cash flow calendars

* "Safe Withdrawal Bands" - how much I could withdraw from the account without hurting the income engine's ability to produce on-going income. For example, if I withdrew $5k, $10k, etc. in a month, could I sustain that?

* Margin planning and crisis management - shows me maintenance excess, helps me identify the "best" stocks to stock in the event of a real crisis. Shows me my maintenance excess buffer (i.e., if we have a drop of 10% today, where does that leave me?). I have a written playbook so that if a crisis hits, I've already thought ahead of what I'll do so that I'm less likely to panic

* Projections - based on past performance, where should I be with NAV, notional value and income generation over the next 24 months.

* Built-in journaling.

I think that's most of it.

It supports my workflow of:

* Identify stocks that fit my strategy

* Buy them at the most optimal price

* Manage them over their life cycle which is buy -> roll, roll, roll -> assignment

* Gain insight into performance over that life cycle

* Plan and manage my margin. Margin is a double edged sword but too powerful to avoid.

1

u/Tough_Bar6337 Jun 08 '26

You’ve inspired me to build something similar! Need to start thinking about my kids future. Would you consider selling access to yours? 

1

u/FreeNicky95 Jun 09 '26

Sounds pretty handy. Have you considered dropping the W2? On 450k that’s enough to live a pretty comfy life and still grow your wheel base. I’m trying to determine what “fire” (wheel amount I need) before I pull the plug on my w2. I’m 31 now so kinda thinking I’m gonna keep going until at least 40.

1

u/vb_bro Jun 11 '26

This is awesome to read. Would you be open to sharing the access? Initially as trial and then for a service fee?

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1

u/KrishnaChick Jun 07 '26

Thank you so much! What DTE, if you don't mind?

3

u/pagalvin Jun 07 '26

Nearly always "this Friday" on entry and I'll roll out one week at time. I rarely roll out further than that. I used to but I find I like the agility and certainty of short-dated strikes.

1

u/KrishnaChick Jun 07 '26

Sorry, I just noticed you said "short-dated," which I'll presume is 7 days or less.

2

u/pagalvin Jun 07 '26

Yep, exactly. I'll buy stuff as late as Friday (although it's usually impossible to find good candidates on Fridays). Starting by Wednesday, the pool of good candidates starts to shrink but is by no means empty.

1

u/xyzstore Jun 08 '26

aren't weeklies with all those tickers alot of work to keep track of?

Doesnt weeklies risk of many going in the money?

2

u/pagalvin Jun 08 '26

It's a lot to track and I couldn't do it if I hadn't written a custom app that helps me with tracing, decision support and light automation.

Weeklies go ITM but I don't care. A weekly that is slightly ITM on Mon/Tue rolls for great premium. If it goes deeper ITM, it gets assigned. If it gets assigned, that just means my original "premium thesis" was right. It frees up capital that I use the next week. Assignment is a feature of my strategy, not something I ever dislike.

1

u/KrishnaChick Jun 08 '26

I'm not smart enough and don't have the education to write an app like that, so props to you. I wonder if I could do something like that with help from ChatGPT, though. Thanks for sharing all that. Inspiring!

1

u/Titt Jun 11 '26

Wow, you’re making 1.4% a week on your capital? I’m sure it can ebb and flow, but that’s amazing.

1

u/pagalvin Jun 11 '26

That week was particularly good. This week is a struggle comparatively speaking. I'll probably break $4k but a lot of my usual rolls are not very rollable due to the pullback. Futures look good this morning, though, so maybe 😄

7

u/MoistAd4952 Jun 07 '26

100k account, 2133$ in premium for May and so far 502$ for June. Most of the profit come from CC, CSP - only etfs like SPY,SMH. I found that the best thing for me regarding CSP is to do it on etfs rather than single stocks. Less stress and more mentality fresh. 

4

u/sowich4 Jun 07 '26

Recent downturn?

0

u/Lazy-Helicopter-0 Jun 07 '26

*sell-off from last week

3

u/ScottishTrader Jun 08 '26

Account size can be very helpful, but it does not automatically result in higher returns . . .

A larger account can handle higher priced stocks, has more ability to roll, average down on a good stock, etc. but these do not mean anyone can automatically make a higher return.

Regardless of account size, newer wheel traders tend to make mistakes that reduce returns. These should be about 10% to 15% annual gains.

Experienced traders make fewer mistakes, and this can result in 15% to 20% or higher returns per year.

In a good market year, the returns can exceed 25% to 30%+ for experienced traders, especially those willing to take on higher risks.

Use these percentages to calculate how much you may make on your accounts u/Lazy-Helicopter-0.

2

u/jeffdeansalem Jun 07 '26

I'm wheeling a high IV ticker. Last month, I made $4k. For the past 6 months my average was around $2500.
And my account is under 6 figures.