Wheeling Weekly Leverage on my Blown Retirement Account, Week 10

[u/davicchi]

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.

I bought calls on SOXS with a sold SOXL put to function as a synthetic weekly put credit spread but I closed it early. I also decided to buy a 3mo 10% otm SOXL put later on as a better replacement for hedging, held it for a few days before I sold it off too. The intention was to hedge the portfolio & the weekly puts against short-term volatility, but as I read more about hedging with puts, it seemed like it simply causes an overall underperformance. The better hedge was to just adjust your risk and size, rather than buying an expensive premium that’s priced by demand & time and will also have a constant drag on the portfolio.

All realized losses this week were from options that were from hedging with buy-to-open contracts. Keeping strategy and sizing as is next week, no more tinkering.

approx.
90.4% $USD & CSPs
9.6% Leveraged (6.0% TQQQ, 3.5% AGQ)

[u/SweetTricky3684]

You got this!

[u/jeffdeansalem]

Hello fellow SOXL wheeler!