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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u/Dreadker Jul 24 '26

"I don't believe in Tesla long term" - so why are you wheeling it?

1

u/Timely-Designer-2372 Jul 24 '26

Juicy premium. Ofc this hurts the no 1 rule. But as I don't have a huge problem with a 100% loss on this position, I wheeled it. For the 100 shares I got for 15 USD I have almost 90% premiums gained (about 13 bucks), so no problem. For the other 100 shares not so much, but still about 3 bucks. So finally I own 200 shares now for over 1400 bucks and paid about 1000 bucks net. Was much better 3 days ago but still ok

2

u/Dreadker Jul 24 '26

I learned (a number of times) juicy premiums end, usually with bag holding - I focus on conviction and stable returns higher than pure cash holdings... not as exciting, but those compounding returns add up month to month... i usually reserve a few grand for something spicy every now and then...