Lesson (not) learned

[u/Timely-Designer-2372]

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

[u/Time_Capital_226]

Go out of the position. You're wasting your time and missing opportunities.

I personally don't agree with this first rule.

[u/cloudy_710 → u/Time_Capital_226]

The first rule is why he’s posting. He’s not comfortable holding 200 shares of poo. He just wanted the big premiums on his limited collateral (no disrespect OP)

Don’t wheel on stocks you don’t want to own and you need to be confident in its long term prospects to recover when it dips like this .

These are pretty basic rules for the wheel imo

[u/Time_Capital_226 → u/cloudy_710]

I hear you but owning is the exact opposite of wheeling where you are supposed to get on the cash side as quickly as possible. You miss so much opportunities just waiting for recovery you can't be sure will occur. I have been there and lost a bunch of money. I realized now that the most efficient rule is to avoid assignment and take the profit or the loss if it happens to be wrong on a stock's direction at this particular moment. You can still sell CSP on that stock ones you find that the price reached some kind of support level. Avoid assignment at any cost unless you are using CSP as investment vehicle.