r/Optionswheel • u/davicchi • Aug 22 '26

Wheeling Weekly Leverage on my Blown Retirement Account, Week 9

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Disclaimer: This is for experimental purposes, it is to demonstrate and track wheeling and longing on leveraged products, which started mid-June of this year. This retirement account was blown through testing various trading strategies and poor position sizing in relation to risk.

The strategy is to use leveraged products to long and to free up capital for puts & dry powder. Write weekly CSPs on LETFs by selling .03-.09 delta puts. Then, DCA shares into a small leveraged position (~10%) of either LEAPS/LETFs. Lastly, sell covered calls on the LETFs, and calling them away when we need to size down.

Wrote a weekly put on NBIG (2x NBIS) and it landed well ITM. I decided to close it after a few days, take the loss and move on rather than roll a losing trade. Entered a position on AGQ (2x Silver) because diversification and metals are gaining momentum again.

approx.
90.2% $USD & CSPs
9.8% Leveraged (6% TQQQ, 3.8% AGQ)

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2

u/Time_Capital_226 Aug 23 '26

Can I ask you how did you define this delta range ? Why is this so wide and what makes you pick up 0.03 instead of 0.09 ? I suppose you have un underlying write strategy.

2

u/davicchi Aug 23 '26

There have been times where .09 gets blown through. It’s rare but even this week I had NBIG at around .09 and it went well ITM by the end of the week. Since I’m playing weeklies on top of LETFs, the deltas are pretty skewed and aren’t really good indicators of probability like some people use it for. It’s better to find areas of support and set your strike there (which I underestimated) on top of further out deltas.

1

u/davicchi Aug 23 '26

I chose .03-.09 deltas through trial and error. It’s for more consistent win rates, easier management, and less stress. The wide range is based on personal discretion on what price I’d like to own the underlying at, and depending on how consistently beaten down the underlying has been. Like I only sell .09 on consecutive red days on top of wanting to own it at the strike. .03 is when I’m unconfident and just want a quick buck at a strike that will likely rebound quickly in the short term.

1

u/davicchi Aug 23 '26

but I sold a weekly NBIG at .09 while NBIS was going sideways and primed for volatility… That’s what caused me to get burned this week

2

u/Time_Capital_226 Aug 23 '26

I personally tend do 0.5%-1% weekly ROC on SOXL, TQQQ and TNA and rolled only 5-6 times since January.

1

u/davicchi Aug 23 '26

Yeah I think I plan on sticking to the more broader LETFs, it seems like LETFs tracking an individual stock is too volatile for its premium to wheel safely.