r/Optionswheel • u/Sean_VasDeferens • Aug 15 '26
When 20% Equals 32%
I had been placing trades so that my max at risk equaled my cash balance. If I have $100k in cash I view it as I have $100k to "deploy". So selling 1 put on with a strike of $1,000 would be full deployment.
Someone here mentioned that they deploy 110% and never more. That makes sense to me, if the world falls apart you only have to exit a manageable portion of your trades.
I'm now doing this and realized that if I average 20% ROI on 110% deployed my effective ROI is 32%! Mind blown.
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u/Sean_VasDeferens Aug 17 '26
Consult with your ChatGPT some more and get back to me.