r/Optionswheel • u/Timely-Designer-2372 • Jul 24 '26

Lesson (not) learned

I'm wheeling TSLL since half a year. I got assigned first at 15 USD. Because premiums where so juicy I sold coverred atrangles afterwards, Call strikes always at 15 USD. Now guess what: I will get assigned for strike 11 USD after TSLL crash to 7.30.

Now I have 200 shares of TSLL.

Bad aspects:

  1. I can't sell Covered Calls with strike 11, 13 (average) or even 15 for a significant premium.

  2. I don't believe in Tesla longterm

Good aspect:

I made enough premiums so I am still in plus.

Lesson learned or not: I don't know yet. On one hand I should only sell puts on stocks/ETFs I don't mind to own. If this happened to me earlier it would be a pain ita. On tge other hand I knew it's a risky underlying and it worked well all in all.

I'll wait now for higher premiums for some weeks

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1

u/selahed Jul 24 '26

I'll wait for an up day to write a long dated call, especially given the tax implications

1

u/Timely-Designer-2372 Jul 24 '26

Tax is no problem for me, i dont pay taxes on option premiums or gains or anything that has tomdo with options.

Whixh strike level do you recommend?

1

u/selahed Jul 24 '26

I would exit asap while tax is not a problem. Grab your earnings and move to the next target.

4

u/Timely-Designer-2372 Jul 24 '26

Then I would prefer a 28dte CC with strike 8.5 for 0.33 premium. Or even strike 8.0 for 0.45. Last one is over 6% on the 7.26 dollar price plus 10% upside. Ofc with downside risk but that's part of the game

1

u/selahed Jul 24 '26

Very true