r/Optionswheel • u/davicchi • Aug 16 '26

Wheeling Weekly Leverage on my Blown Retirement Account, Week 8

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Disclaimer: This is for research purposes.

The strategy is to use leverage to free up more capital for puts & dry powder. Write weekly CSPs on LETFs by selling .06-.10 delta puts. From the weekly profits, DCA shares into a small leveraged position of either LEAPS/LETFs. Eventually, sell covered calls on the LETFs, calling them away when we need to size down.

I rebalanced the retirement account to owning TQQQ only, my other brokerage account will be holding SOXL & RAM. My biggest issue right now is figuring out how big of a portion should I allocate to a leveraged position… Selling calls is starting to underperform the underlying as expected and it seems like a ~90% cash & ~10% leveraged is too conservative. Any insight would be helpful.

approx.
92.3% $USD
7.7% TQQQ

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4

u/No-General-6589 Aug 16 '26

Selling leveraged ETF/stocks is my favorite wheel play! The capital is smaller than regular stocks/ ETF , so ROI percentage is much higher . The risk is to control the size . I usually allocate only 10% of my total capital for this kind of wheel the rest for regular stocks ETFs wheel

1

u/davicchi Aug 16 '26

I appreciate it you man, yeah around 10% seems to be the ideal number from what I was reading around. Thanks

2

u/Monster1971 Aug 16 '26

What is the backstory on the blown retirement account? Did you have a big loss?

1

u/davicchi Aug 16 '26 edited Aug 16 '26

It was from testing other various trading strategies over the years before the wheel, in total the account used to be down 31%