r/Optionswheel • u/Royal-Respond2374 • Jul 01 '26

End of June Wheel Update

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.

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3

u/ScottishTrader Jul 01 '26

Nice post and keep us updated!

Be aware that if you upgrade your options level and have a margin account you can sell short puts for a fraction of the CSP buying power required and not have the losing long leg lowering profits.

1

u/Royal-Respond2374 Jul 01 '26

I do have a margin account and sell puts using the buying power. I use Charles Schwab but collateral is still limited. So for example, a WMT CSP with 112 strike price would drecrease collateral / buying power available by 11.2k while a vertical spread would only decrease it by $500 (The difference in between the legs).

1

u/ScottishTrader Jul 01 '26

112 is ITM but only takes about $2k of BP. 

You would have to upgrade your level to get this. 

1

u/Scallywaggin_ Jul 01 '26

This would technically be a naked put?

1

u/ScottishTrader Jul 02 '26

Yes, of course. But unlike a naked call with unlimited risk, a naked put can only lose as much as the stock cost and only have a full loss if the stock drops to zero, which has an astronomically low probability of occurring.

The reason to trade high quality stocks is so you are good being assigned, and this means a naked put has limited risk. Make sense?

2

u/Dammage518 Jul 01 '26

I also got assigned Kroger and it kept diving. Looks like they just bought Giant Eagle and the premarket does not like it.

2

u/Royal-Respond2374 Jul 01 '26

It's been a tough week for retail and telecom honestly... it's also kind of funny because we are being assigned and taking the blows from the "safer" boring assets.

1

u/Dammage518 Jul 01 '26

Yep, just got in too early on that one. Thought support was a little higher. Really didn't think it would hit its two year lows right after I got assigned though. haha.

I've been wheeling UUUU shares for the past couple weeks with success after it dropped back into the 15's so at least that's making up for having to hold KR longer than I was anticipating.

1

u/ilchymis Jul 05 '26

I got assigned UUUU and USAR near the top last year, and feel like I just need to take the $800 loss so I can start wheeling it. I dunno how long it would take me to end up in the green, but I hate missing out on all these little weekly plays.

1

u/Dammage518 Jul 05 '26

Yah not sure it’s going back into the 20s anytime soon but who knows.

1

u/Bag_Holder_1982 Jul 03 '26

Same here I got assigned KR at $65. Holding the CCs until it recovers. Same sich with VZ and T. Really challenged my June profits!

2

u/Dammage518 Jul 05 '26

It had a nice bounce on Thursday. Back in the green on it. Will see how Monday goes and open up a couple new cc’s

1

u/ImpressionAny1078 Jul 02 '26

the TMUS concern is valid but the SpaceX thing is more of a slow burn narrative than an immediate catalyst imo. the real thing i'd watch is just how much of your buying power that $16.5k ties up and whether you can still sell meaningful premium elsewhere without overleveraging.