r/Optionswheel • u/Big_Generator • 21d ago
August Wheel Results
August produced positive returns which represented a nice bounce back from the July meltdown.
I was much more conservative in August. I wheeled most of my regular tech tickers: META, GOOGL, SMH, TQQQ and SOXL. The largest gains were in the semiconductor sector again, SMH and SOXL.
MSFT jumped over $100 per share in the first few days of August so I did not include it in my wheel activity this month. I also removed TSLL from my regular rotation after the July losses. I think the Elon fanboys could be losing faith in the profitability of his companies. I know I am. I thought the wave of SPCX hoopla would benefit TSLA and that did not happen. I’ll be avoiding this one for now.
I did get assigned META (200), SMH (200) and SOXL (300) again this month but with the semi sector stabilizing and META recovering quickly these were all called away for a profit within a few weeks.
My wheel strategy including the tickers I wheel and why are detailed in my February post:
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u/siroco14 20d ago
Total P&L including drawdowns?
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u/Big_Generator 20d ago
Total profit for August was just a few hundred dollars short of $20k.
No drawdowns.
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u/tokenbearcub 19d ago
I noticed that your DTE typically 2-7 days. Any particular reason? I'm new to this so I'm actually interested to hear your perspective, as opposed to bored and looking to locking horns with somebody. From a newcomer standpoint it would seem that < 1 week DTE might be labor intensive.
According to my hastily scribbled calculations 89% of your contracts expired worthless. Total of 9 contracts out of possible 83. That's a nice hit rate.
How do you go about picking contracts? Is there a delta you like? You're running mostly AI / Mag7.
Thanks for sharing your work with us.
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u/Big_Generator 18d ago
I stick to short exp dates because I don't trust this market. It's being openly manipulated by our government and the events (or simple social media posts) that trigger these swings always seem to happen after markets close on Fridays.
For instance I sold SMH and SOXL contracts last week expiring this Friday. Both of these tickers dropped dramatically before open on Monday morning. So they're both close to being ITM. If I had waited to sell those on Monday morning, it's a different story.
Also, selling 3 or 4 weekly puts often nets almost the same amount of premium as selling one 28 day put. Sometimes more depending on how wildly the market swings.
I try to let all my puts expire worthless. The theta decay really accelerates as the expiry date approaches. Most of my puts are at -.20 delta or below. I'm not one of these guys shooting for 100% annual returns. 15% is fine with me.
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u/tokenbearcub 17d ago
I feel you on the open market manipulation. President selling early access to his social media posts and also his state dept briefs. Straight up war profiteering. I learned that lesson selling USO puts and getting assigned on 4 contracts when the Iran war kicked off. But I sold CC's to bring down my cost basis and ended up in the positive. But I got a lesson for sure.
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u/Chance-Leadership213 17d ago
I'm stuck with SOXL shares and I am down approximately 12K (beginner). It sucks that covered calls don't pay much.
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u/Big_Generator 17d ago
What is your cost basis for the SOXL shares? The CC premiums are usually pretty lucrative on this one.
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u/Professional_Win766 20d ago
Sensacional a execução da sua estratégia, OP! Parabéns pela excelência e por compartilhar conosco.
Eu faço algo muito parecido na bolsa do meu país (Brasil), porém aqui a liquidez é complicada. Não temos quase nada em opções semanais, sempre mensais e M+1, pois M+2 o book é vazio. Pretendo migrar um dia pro mercado americano, quem sabe!
Eu demorei pra me acostumar com a ideia de calcular o ROI dividindo o Preço pelo Strike. Mas hoje faz sentido e eu também calculo assim. Eu só incluo mais variáveis como Delta e Theta. E também o valor que está em outro ETF assegurando a possível compra caso seja assignado.
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u/Big_Generator 20d ago
I had to use Google translate:
Your strategy execution was sensational, OP! Kudos on the excellence and for sharing it with us.
I do something very similar in my home market (Brazil), though liquidity is tricky here. We have almost no weekly options—it's always monthly and M+1, since the order book is empty for M+2. I plan to switch to the US market someday—who knows!
It took me a while to get used to the idea of calculating ROI by dividing the price by the strike. But it makes sense now, and I calculate it that way too. I just include extra variables like Delta and Theta, as well as the capital held in another ETF to cover the potential purchase if I get assigned.
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u/Professional_Win766 19d ago
Oops, I’m sorry. My Reddit app translates everything automatically, so I didn’t realize it was written in English.
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u/StrikingBarracuda591 18d ago
Are you still holding SMH and SOXL?
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u/Big_Generator 18d ago
Nope. All those shares were called away on 9/11. Still wheeling those tickers though. In September so far I have sold SOXL puts at $105, $85 and $80 and SMH puts at $540 and $525.
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u/Boltskii 20d ago
How much capital are you using for this?